How Much Do Managed IT Services Cost?

Managed IT services are typically priced as a recurring monthly fee, but there is no universal per-user or per-device price that applies to every business.

The cost depends on the organization, its technology environment and the responsibilities being assigned to the managed service provider.

Factors such as the number of users, business locations, technology complexity, cybersecurity requirements, infrastructure and required level of support can all affect pricing.

For this reason, two organizations with the same number of employees may have different managed IT costs.

What Factors Affect the Cost of Managed IT Services?

The size of the organization is an important consideration, but user count alone does not determine the cost of managed IT.

The technology environment itself matters.

A business operating primarily with modern SaaS applications and limited onsite infrastructure may require fewer resources to manage than an organization of the same size with physical servers, legacy applications, specialized systems or more complex infrastructure.

Multiple business locations can also increase technology-management requirements. Each location may introduce additional connectivity, networking, security, infrastructure and support considerations.

Cybersecurity and compliance requirements can further affect the resources and technologies required.

Managed IT pricing therefore reflects both the size of the organization and the environment being managed.

How Does Technology Complexity Affect Managed IT Pricing?

Technology complexity can significantly affect the effort required to support and manage an organization.

An environment with physical servers, legacy systems, specialized applications or complex infrastructure may require more ongoing attention and specialized expertise than a highly standardized environment built primarily around modern cloud and SaaS services.

Organizations that have modernized and standardized their technology may require fewer resources to manage than similarly sized organizations with more complex environments.

This is one reason managed IT pricing should not be viewed simply as a universal price per employee.

Do the Technology Platforms an MSP Provides Affect the Price?

Yes.

Modern managed IT typically relies on technology platforms to help manage, monitor, secure and protect the client's environment.

The capabilities included can vary between providers and agreements.

The cost isn't limited to software licensing. Technology also needs to be appropriately deployed, maintained and managed to provide value.

Businesses evaluating managed IT should therefore understand what technology capabilities are included in the service and what responsibilities remain outside the agreement.

Is Labor a Major Part of Managed IT Pricing?

Yes. Managed IT remains a people-intensive service even as technology and automation make service delivery more efficient.

Technical professionals are still required to support users, manage infrastructure, address complex issues, manage cybersecurity risks and provide specialized expertise when needed.

The amount and type of expertise required can vary considerably based on the environment.

A relatively simple, standardized organization may require less ongoing effort than a business with complex infrastructure, multiple locations or specialized technology requirements.

This relationship between the environment and the resources required to manage it is one reason managed IT pricing can differ between otherwise similarly sized organizations.

Does Cybersecurity Affect the Cost of Managed IT?

Yes.

Cybersecurity requires both technology and ongoing management, and the appropriate level of protection depends on the organization's environment, risk profile and requirements.

Businesses with regulatory, compliance, cyber-insurance or elevated security requirements may require additional cybersecurity capabilities.

At Mentis Group, cybersecurity is foundational to our managed IT approach. Organizations with more advanced requirements can also use Enhanced Cybersecurity Services.

Are IT Projects Usually Included in Managed IT Pricing?

It depends on the provider and the agreement.

Recurring managed IT generally focuses on the ongoing support and management of the technology environment. Significant changes to that environment may be handled as separate technology projects.

Examples can include major infrastructure changes, office moves, significant cloud migrations or other substantial technology initiatives.

Some managed service providers include certain project activities within their recurring services, while others scope significant projects separately.

Businesses should understand what their agreement includes so they can appropriately plan their overall technology budget.

Learn more about What Is an IT Project Engagement?.

Why Can Two MSPs Quote Different Prices for the Same Business?

Managed service providers can differ in the services they provide, technologies they include, areas of responsibility they assume and types of expertise available to their clients.

As a result, two proposals for the same organization are not necessarily equivalent even when both are described as managed IT.

More comprehensive technology management generally requires more technology, expertise and resources. That can result in a higher cost.

A higher price does not automatically mean a better service, just as a lower price does not necessarily mean a lesser one. The scope and requirements of the engagement matter.

Is Per-User Pricing a Good Way to Compare Managed IT Providers?

Per-user pricing can be useful for understanding and forecasting costs, but it does not tell the entire story.

A per-user fee may include different services from one provider to another. Technology complexity and other environmental requirements can also affect the resources required to support each user.

The overall scope of the managed service should therefore be considered alongside the per-user price.

What Costs May Be Separate From Managed IT?

Every managed IT agreement is different, but organizations may have technology expenses beyond their recurring managed-services fee.

These can include business software and cloud subscriptions, computers and other equipment, telecommunications services, significant technology projects and specialized services outside the managed agreement.

Understanding these costs is important when developing an overall technology budget.

For a broader perspective, read How Much Should a Small Business Budget for IT?.

How Does Mentis Group Approach Managed IT Pricing?

Mentis Group evaluates the organization and the technology environment we are being asked to manage.

Organizational size, business locations, technology complexity, cybersecurity requirements and overall scope can all affect the resources required.

This means two organizations with the same number of users do not necessarily require the same managed IT investment.

Our objective is to understand the environment and establish an appropriate scope for managing it effectively.

Fully Managed IT Services are designed for organizations that want Mentis to take broad responsibility for managing their technology environment.

For organizations with internal IT resources, Co-Managed IT Services provide a model in which Mentis works alongside the internal technology team.

Have a question about your own environment? Schedule a consultation with Mentis Group or call (866) 901-7808.