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Making Sense of Managed IT Services Pricing

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Embarking on a journey with a managed services provider (MSP) becomes smoother once you have a good idea about managed IT services pricing and what it entails.

“In today’s tech market, understanding managed IT pricing is one of the keys to long-term business agility and growth,” notes James Bishop, Partner at Propel Technology.

“This information not only helps you make informed decisions about who to partner with but also helps you ensure you get a good return on your investment. Many IT salespeople will try to obfuscate and hand-waive away details with technical jargon. It’s important to press them on exactly what they’re proposing for you and why – in plain English.”

With 37% of IT operations being outsourced and 13.6% of IT budgets dedicated to outsourcing, figuring out your managed IT costs can be a complex task given the numerous factors that come into play.

Often, a detailed managed IT services ROI calculator would be ideal to pinpoint costs accurately. However, in many cases, such a tool is not available. That’s where our comprehensive guide on managed IT services pricing comes in, covering:

  • The common models of managed IT pricing
  • Key influential factors in managed IT pricing
  • Approximating the cost of managed IT services
  • Estimating your managed IT services expenses without a calculator

With that in mind, let’s begin our exploration of managed IT costs.


Understand Managed IT Service Rates Before Making a Decision

Get the lowdown on the cost of managed IT services with help from our experts.

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A Closer Look at Common Managed IT Pricing Models

For business owners, understanding the infrastructure, technology, and network needs of your enterprise is crucial.

From knowing what it takes to keep you at peak performance while managing day-to-day IT issues to being honest with your vCIO or technology consultants about your IT infrastructure, everything comes together when your managed service provider is on the same page as you.

Although future IT requirements might be uncertain, you can start by understanding different managed service pricing models. Generally, managed IT services are charged in one of two ways:

1. Break-Fix (Pay-as-You-Go): This model covers reactive IT solutions or project-specific services at an hourly rate. There may be additional costs for services like monitoring or troubleshooting if they are not included.

2. Managed Services (Subscription): This proactive approach manages your infrastructure and technology comprehensively. It includes a variety of services and support for a set monthly cost, making it ideal for businesses of all sizes with changing IT requirements.

Service Level Agreements (SLAs) often govern these services, detailing the service scope, exact managed IT pricing and terms.


Managed IT Services Models Explained

Now that you understand the two primary types of managed IT services pricing, let’s examine the most common managed service models.
1. Tiered: Service bundles that escalate in comprehensiveness and managed IT services rates with each tier.
2. Per-User: A flat fee approach, calculated per user each month.
3. Per Device: A consistent monthly fee based on a per-device arrangement.
4. A La Carte: Tailored packages offering specific IT services, often aligned with unique business processes.
5. Monitoring Only: The cost varies based on service level and typically includes network monitoring, help desk, and alerting services.
6. ‘All You Can Eat’ (Unlimited): A comprehensive IT support package ideal for larger businesses with substantial budgets, covering all remote and on-site support.

Key Factors Impacting Managed IT Services Rates

Understanding what influences the managed IT services pricing is crucial for accurate budgeting. Accurately predicting your managed IT costs can be complex without an extensive managed IT services price list and a clear understanding of your specific IT requirements.

Furthermore, global IT expenditure, which was approximately $4.7 trillion in 2023, plays a significant role. With an increasing number of businesses seeking services from MSPs, this rising demand is expected to impact service costs.

Let’s discuss the primary factors that shape the price range of managed IT services.

Managed IT Pricing Factors Description
Data Complexity The cost of data complexity includes managing operational systems, phone systems, infrastructure, processes, and IT support services. Higher data complexity leads to increased managed IT costs.
Amount of Users More users mean more access points and vulnerabilities. Consider the impact of remote work on managing users, devices, and infrastructure.
Amount of Servers Server management involves dealing with complexity in management, security, maintenance, customizations, and upgrades, which can quickly escalate managed IT services costs.
Necessary Service Time The extent of time an MSP dedicates to solving IT problems or managing infrastructure issues significantly influences managed IT pricing unless specified in service agreements.
Present and Future IT Needs As your business grows, your technology needs evolve. Managed services that offer scalable solutions are beneficial for small and medium-sized businesses.
Supported Industry Verticals Industries with stricter regulations, such as healthcare, legal, or financial services, often need advanced business continuity and security solutions, typically provided through managed services.


It’s crucial to ensure that your MSP understands and complies with data compliance standards relevant to your industry to avoid fines and maintain regulatory compliance. If found to be non-compliant, your business could face sanctions, legal issues, and costs of up to $14.82 million.


Interested in learning more about managed IT services? Check out these blogs:



Managed IT Services Pricing


Estimate Your Managed IT Services Costs Today With Propel Technology

Managing your IT efficiently demands a reliable technology ally. Thankfully, a cost-effective path exists, allowing access to premium managed IT services that align with your budget.

Let Propel Technology serve as your dedicated managed service provider, empowering you to effectively manage your infrastructure, bolster data security, and stay ahead of potential challenges. Our proactive managed IT services come with customizable packages, offering a consistent monthly cost for simplified budgeting.


Get Reliable Managed IT Services in Your Location Today


Serving over 150 companies worldwide with an impressive average response time of just six minutes for all IT issues, Propel Technology ensures that your present and future IT needs are properly addressed through our wide range of managed services.

To discover more about our managed IT services rates and pricing options, reach out to us today. We’re here to guide you through our services and help you make informed decisions.

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