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What Are My Pricing Options for Managed IT Services?


David Eichkorn
Author: David Eichkorn Date: 11/22/2016

Managed IT services allow small and medium-sized businesses (and, occasionally, large businesses) to put the responsibility of their IT systems’ performance and maintenance in the hands of experts – typically resulting in reduced overhead and optimum system uptime. In this post we outline the different ways Managed IT services are priced, focusing on the most common models and the advantages of each.

Monitoring Only

Businesses that invest in this level of Managed IT service have peace of mind knowing that their provider is closely watching their systems (usually 24/7/365) and will alert the company of any issue that has the potential to cause problems. A Monitoring Only pricing package usually requires the least amount of investment on the part of the business because solutions to any system issues are not included in the cost.

The advantage: When budgets are extremely tight this approach may make the most sense. Issues (potential data breaches, underperforming computers, required updates, slow system performance, etc.) will be detected, though the cost of resolution will be above-and-beyond the monthly cost.

Per Device

This pricing model is based entirely on the number of devices in your organization. You might decide that you want your Managed IT provider to only cover your computers, printers, multi-function devices and servers, but some organizations also rely on Managed IT providers to monitor cell phones, tablets and other devices.

The advantage: The benefit of this type of pricing is that it’s simple and predictable; your financial team is able to anticipate the exact costs over the course of your contract – though as you add or eliminate devices, your cost will vary.

Per User

This approach is similar to Per Device pricing but is based on the number of people within the organization. Specifically, a company is billed a flat fee per end user every month, and that fee covers support for all the devices used in the organization.

The advantage: This model also allows easy budgeting, since the cost to add another person is very easily calculated.

Tiered

This pricing structure is essentially a “good, better, best” kind of arrangement, where a provider puts together packages that get more inclusive as the price per month goes up. Each tier features a specific level of solutions, services and support.

The advantage: This model allows customers to choose from multiple packages to find the one that’s most aligned with their people, equipment and performance needs.

A la carte

This pricing approach is by far the most flexible, allowing customers to pick exactly which services they’d like to have, from all those offered by the provider.

The advantage: While a tiered model allows some flexibility, the customer isn’t typically allowed to “swap out” one of the package’s offerings for a different one. A La Carte pricing provides exactly that ability. This approach gives businesses the highest level of accuracy in terms of needs aligning with service provided.

Interested in how your organization could benefit from Managed IT Services? To be certain you’re getting exactly the kind of monitoring and support you need – no more, no less – talk with one of the Gordon Flesch Company’s experts. Our team will walk you through all your options, with a close eye on your budget and the needs of your specific business.

In House IT vs. Managed IT Services Comparison Chart

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Written by David Eichkorn

Throughout David's 20-year career in IT support and management for big and small enterprises, he’s helped executives all over the world. David implements technology in a way that allows it to be the driving factor in how an organization accomplishes its business goals.

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