How Much Do Managed IT Services Cost?

managed IT servicesWhat if I told you there is a service that can alleviate most — if not all — the stress you have about keeping technology working along with all of your other executive duties?

If you’re not already familiar with managed IT services, it is an option to outsource your IT maintenance and management to a team of experts. They handle everything from printer problems to figuring out why you can’t connect to the internet to locating those missing files.

As a busy business leader, you’re probably at a minimum intrigued by this concept. However, you have your budget to keep in mind. So it’s only expected that your most pressing question is, “how much would managed IT services cost?”. 

Unfortunately, we can’t give you a set number because there are so many variables to factor in, but a rough estimate is between $85 and $100 per user per month plus a minimum of $1,250 of upfront costs

Your exact cost for a managed IT services contract varies based on your needs. However, when creating your individualized contract and calculating the price, here are some components you should keep in mind. 

  1. Onboarding fees
  2. Monthly rate
  3. Information security controls
  4. Data backup
  5. Ways to reduce costs

The following information aims to help you roughly estimate how much managed IT services could cost. Still, this article is not a substitute for a quote from a prospective managed IT service provider (MSP).

Onboarding Fees for Managed IT Services

Before we get into the details of what goes into per-user pricing, let’s start at the beginning of how your MSP will bill you. 

Once you give a prospective MSP the green light to start assessing your IT environment to hone in on your monthly costs, they’ll need to conduct an audit. 

During this review, your MSP assesses what technology you have in place, checks for any issues you need to address before beginning services, and verifies the number of users in your organization. 

You’ll need this process repeated at each of your organization’s sites, and the total price will reflect this.

Generally, you can expect to pay $500 per site for this deep dive into your business’s IT. 

Managed IT Services Monthly Rate

Each of your users will receive the provider’s security software suite and remote monitoring and management (RMM) tools as a managed services customer. managed it services

As mentioned earlier, you’ll pay between $85 and $100 per user for this portion of the contract. Pricing is related to the size of your business, and the more seats you add, the lower the per-user cost is. 

With this per-user fee, you’ll receive, at a minimum, these four solutions: 

  • Anti-spam catches malware at the email level. It flags suspicious emails and prevents malicious software from coming through your user’s online inboxes.
  • Antivirus identifies threats that may be lurking on your devices. 
  • DNS filtration monitors your internet traffic for potential suspicious or malicious links and prevents users from opening them.  
  • Remote maintenance and monitoring software allow your MSP to access your users’ laptops if they can’t make it on-site. This allows faster resolution of problems that aren’t too technical but above the user’s skill level. 

Generally, this will be the same set of solutions for all of the MSP’s customers. This allows your provider to standardize all their clients on the same solution and quickly navigate through the software. 

Additionally, your MSP will have researched and vetted the solutions you’re required to use, so you can rest assured it’s safe and effective. 

Security Controls from your MSP 

Another crucial component for your security as a managed IT services customer is the firewall. 

This solution filters traffic between the world wide web and your internal network. Think of it as a gate designed to prevent malicious traffic from free-flowing into your IT environment. 

Your MSP will require you to have a firewall in place. Like the software suite, they’ll also standardize which vendors all managed IT services clients should use in their environment. 

This means even if you have a firewall in place, you may have to purchase a new one that’s in line with your MSP’s requirements. So, it’s a good idea to go ahead and plan for this expense regardless of the security setup you currently have. 

While the vendor is set, the exact model of the firewall you’ll use depends the following factors: 

  • The number of users
  • The size of your organization
  • The amount of internet throughput 

The more capabilities your firewall needs, the more expensive it will be. 

The cost of a firewall can range from $750 to $2,000 per site. This is a one-time fee. 

On-site and Off-site Backup

managed it services So far, you’ve read about security solutions and firewalls and the costs associated with them, but your MSP will also require you to implement data backup.

There are two pieces to this conversation.

First, on-site backup helps with quick recovery times against data corruption and hardware failures. You can purchase this device and pay an upfront cost or pay a monthly rental fee to your MSP. 

Meanwhile, off-site backup with replication keeps a copy of your data, so you can recover your files if there is a fire, flood, tornado, or other natural disasters. This is a recurring, monthly fee based on the amount of storage you need. 

As far as how much you’ll pay your MSP for these services, it depends on several factors. 

  • Licensing: Generally, your backup is licensed per device or operating system. The more licenses, the higher your cost.
  • Sizing: The more data you need to backup, the more you’ll pay. And, you’ll want to keep in mind how much data you’ll need to store in a few years from now, so you don’t immediately outgrow your solution. 
  • Control bandwidth throttling: If you have an off-site backup, you’ll want a mechanism in place to ensure your internet connection isn’t saturated when transferring data off-site. 

Rates for backup can start as low as $130 per month. For this price, you’d rent an on-site appliance from your MSP, up to 3 Tb of storage, and replication off-site. 

However, the cost can quickly increase if you need more storage space. 

For up to 3 Tb of storage plus features such as the ability to add additional hard drives and configure virtual servers in an emergency, you’d pay $400 per month. 

Your MSP is also quoting you a $1,500 one-time fee to purchase the backup appliance in this price scenario. 

Lowering the Cost of Managed IT Services

The examples we gave above are a great guide to how your company should budget for managed IT services.

However, there are a few other factors that play a role in your final rate. These include:

  1. You already own compatible hardware.
  2. You have part-time employees or employees who don’t require computer access. 
  3. You sign a 3 or 5-year service term for an approximate 15% or 25% discount
  4. You agree to a remote support agreement with as-needed onsite visits. (Your MSP can solve about 80% of your IT problems remotely.)

Another way your bill might change is if you add or lose a user or if you require on-site support in a remote-only contract. Some MSPs generate a separate billable engagement for either situation. Doing so allows you to avoid feeling like you’re being nickeled and dimed.

There’s no denying cost is an important factor when deciding if managed IT services are right for you. But, we encourage you to look at all of the factors — service, availability, approach, etc. — when determining if this solution is right for you.

To help you better understand what managed IT services look like with The KR Group, check out our free guide on signing a contract with an MSP. It goes over everything you need to know before signing a contract.

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