How Much Do Managed IT Services Cost?


November 4, 2021

If you’re struggling with your IT budget or need help planning your investment, you may wonder how much do managed IT services cost? The answer will depend on the services you choose and the size of your company.

Outsourcing business processes is relatively common with large companies, but nearly a quarter of small businesses have adopted the practice. IT management services are at the top of the list because of the many benefits they offer. 

But to understand the cost of managed services and the value they provide, you’ll need to determine your company’s needs and what to expect from your managed service provider.

What IT Managed Services Pricing Includes (and What to Expect From Your Investment)?

IT outsourcing is a lucrative opportunity for businesses. Hiring an MSP essentially gives you access to a credentialed, experienced team at a fraction of the price of full-time employees. An MSP can handle all of your IT needs, from implementation to maintenance. You can choose from services such as:

  • 24×7 network monitoring
  • Prompt remote support and break/fix for technical issues
  • Preventative maintenance
  • Data backups and disaster recovery to ensure business continuity
  • More robust security policies and employee training
  • Regular network health reporting
  • Annual technology planning and strategy

With an MSP, your internal IT team can focus on core capabilities and leave the day-to-day issues to an expert team. So, how much do managed IT services cost?

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What Do Managed IT Services Cost?    

Managed IT services prices may seem daunting at first for small and medium-sized businesses. However, with the right provider, the math will work out in your favor. You can find significant savings on the costs of hiring and training full-time internal staff. Additionally, MSPs can help you cut costs on infrastructure and prevent costly data breaches.

The pricing will ultimately depend on the services you’re getting and the size of your business. Depending on the pricing model, fully managed IT services can cost:

  • $100 to $250 per user
  • $30 to $100 per device
  • $75 to $400 per server 

It’s crucial to know exactly what you’re paying for when you sign up to calculate the value and ROI. Business owners should review agreements carefully to ensure they have all their bases covered.

Common IT Managed Services Pricing Models?

Managed IT services pricing can vary greatly from one company to the next. There are several pricing models, but most of the companies have a minimum rate for a monthly contract. The typical ways that providers calculate managed IT services costs include:  

  • Devices Per Month: This pricing model assigns a rate for each device that’s connected to the network. This could be a desktop, printer, or mobile device, and you can expect to pay a different rate for different devices.
  • Users Per Month: Employees often use multiple devices throughout the day, and many businesses find it more cost-effective to work with a company that charges by the number of users, rather than per device. 
  • Hourly Rate: Some businesses with internal IT teams may only need support for certain parts of the day or during certain projects. Hourly rates allow them to only pay for what they need when they need it. 
  • Service Tiers: Many MSPs offer a flat fee for different service levels. While they are still often charged by the number of users or devices, the services offered vary depending on your needs. The basic tiers typically start with server monitoring only, with other features costing extra. 

On top of handling your IT needs, there are other services you can benefit from. These can include:

  • Strategic Guidance: You can augment your team with a virtual Chief Information Officer to offer insights on your processes and improve the efficiency of your technology. 
  • Data Hosting: Your service provider can take care of your data hosting needs to help you meet industry requirements and save money on hardware, space, and electricity for storing your data.
  • Cybersecurity: MSPs can actively monitor your security protocols, identify new weaknesses as they develop, and resolve them before hackers can breach your system.

Additional Costs


IT Managed Services Pricing    

Some items will fall out of the scope of your service agreement. When you’re calculating how much your managed IT services should cost, you need to ask your provider about additional fees. These can include things such as:

  • Onboarding Costs – These charges can occur when you first hire an MSP or when you make major changes to your software and hardware.
  • IT Assessments – Whether it’s an initial assessment or a reevaluation of your IT strategy, these reports can help you make key decisions about your IT investments.
  • Hardware and Software Upgrades: Some MSPs facilitate the sale of software licensing and hardware, often at a price break, but purchases fall outside of the service agreement.

How Much Do Managed IT Services Cost? Much Less Than Downtime…

Outsourcing your IT ensures you have the expertise on your side to keep your technology running smoothly without wasting money on the tech that’s not right for your company.

At CalTech, we serve financial institutions and health care centers that bank on our support. We take the unpredictability out of maintaining and securing your valuable and necessary IT infrastructure, so you can focus on serving your clients.

Connect with an expert today to find out how we’ll help you take control of your IT budget.


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