Managed IT Services Pricing

A Guide to Managed IT Pricing

Sebastian Abbinanti industries

The managed services market is quickly ballooning, estimated to nearly double in size from $161.37 billion in 2021 to $311.32 billion in 2027

Among the primary causes for this rapid market expansion would be an increase in big data complexity and the adoption of remote work and cloud computing services. With technology at the forefront of every organization, an organization’s infrastructure is all the stands between success and failure. 

One way organizations ensure their infrastructure remains in peak performance is by using managed services to fulfill specific IT needs. Depending on an organization’s size, needs, location, infrastructure, and data complexity, their managed IT services pricing will vary.

For instance, a small business with ten or fewer employees can expect to have lower managed IT costs than an enterprise with several hundred employees. 

Why is this? The enterprise has more devices to manage while the enterprise's data complexity is likely more challenging to manage. 

To learn more about estimating managed IT costs, this article will cover: 

  • Why Managed IT Costs Vary
  • Factors That Influence Managed IT Costs
  • Managed IT Services Price List (And Models)
  • How Much Does Managed IT Services Cost With The Isidore Group

Why Managed IT Costs Fluctuate

Every organization's IT demands are unique to its structure, capabilities, and evolving IT needs.

Since no two businesses possess the same IT needs, estimating the costs of managed services can prove challenging without a managed IT services calculator. Even then, it’s unlikely that a managed IT services ROI calculator can properly determine the unique needs of your business without consultation services

The reason for this is most managed IT services packages are structured to fulfill a set of services and solutions within a fixed monthly fee. Since IT needs often vary from one business owner to the next, so does the extent (and cost) of the services they require.

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Managed IT Service Pricing Factors

Managed service pricing is easier to estimate when you understand the factors that influence it. To better understand the core factors that influence managed IT services costs, let’s examine some of these factors.

  • Data Complexity: Also known as the cost of complexity, data complexity refers to the costs of introducing and managing new technologies, processes, and services. The greater an organization’s data complexity, the higher its managed services will cost.
  • Number of Users: Remote work has changed how businesses manage their users, devices, and operational systems. While protecting more users equates to more money, it’s still cheaper than covering a breach. Traditionally, MSPs offered break-fix services at an hourly rate, although most entities opt-in for a per-user per-month service.
  • Number of Servers: When an organization deploys more servers they indirectly increase their managed IT costs by increasing the data complexity to their network, infrastructure, backups, system security, and more.
  • Service Time Required: Service time, or the time dedicated between an MSP and a business to resolving IT problems or addressing infrastructure issues, can significantly impact managed service costs unless explicitly stated otherwise in services agreements.
  • Supported Industry Verticals: Organizations operating in more highly-regulated industries, such as healthcare, banking, or legal services, possess a higher degree of data complexity and often require advanced business continuity, security solutions, and disaster recovery services to avoid compliance fines. 
  • Present and Future IT Needs: As a business evolves, so do its IT needs. In order to remain competitive, relevant, and a leader in business today, an organization’s managed services must be structured to support the evolution of a business. 

Managed IT Pricing Models

While there are many factors that influence the price range of managed IT services, it is the managed service pricing model that makes the biggest difference to a business owner

Traditionally, managed IT service pricing is structured in two ways:

  • Subscription-Based: Also known as product bundling, many companies use subscription-based services because they provide a wide range of services, support, and solutions for a predictable monthly rate - while better protecting businesses with improved technology, uptime, and expertise.
  • Pay-as-You-Go: Typically offered as break-fix or project-based IT services, pay-as-you-go IT services generally have an hourly rate and may have additional costs that aren’t covered by a managed service provider (such as IT troubleshooting or ongoing monitoring services).

Traditionally, pay-as-you-go IT services used to be the most cost-effective option. However, given our growing reliance on technology, the dangers of evolving cyber threats, and the complexities of keeping business technology well-maintained, subscription-based services like the following are most popular amongst businesses:


Get Custom Managed IT Services Rates With The Isidore Group

Now that you understand the factors that affect managed IT service pricing, it’s time to partner with a trustworthy managed services provider.

Whether you need ongoing desk support or your entire IT infrastructure managed, The Isidore Group’s managed services can be structured to include all the support your business needs at a flat, predictable monthly fee. 

Our response times are backed by service level agreements, while our 24/7/365 network monitoring services can remediate most issues before they impact your business. 

Protect your uptime, data, and infrastructure with assistance from proven technology experts who can help you get the most out of your IT.

For more information about the services we offer and the associated costs, contact us today to learn more.