The cost of Managed IT Services is a subject that is often overwhelming to many businesses. There are several factors that can influence the cost of an IT Managed Service Provider. However, there are common factors that impact the price and will allow businesses to effectively manage the service.
By introducing a third party to manage information technology, businesses are opening themselves up to additional service costs, which can be significant. According to Gartner’s Forecast in Worldwide IT Spending, the estimated worldwide IT spending in 2022 is projected to total $4.5 trillion.
While that kind of number can be overwhelming, most businesses find that the monthly cost of a quality managed services provider is quite affordable, and provides value that far exceeds the spend. The key is making sure you find an IT service provider who understands your entire IT environment and can protect your business from threats in the ever-evolving world of cyber security.
At Vivitec, we don’t believe in a “silver bullet” for technology solutions. We meet with businesses to provide a holistic technology solution that is simple, secure, and reliable. Our business technology solutions are designed to provide businesses with the tools necessary to continue to grow in an ever-changing technical landscape. A number of servers, amount of data, evolving needs, etc.
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Traditional Break/Fix IT Service Models versus IT Managed Services Models
To understand how much Managed IT Services should cost, it helps to first understand the different models of IT Support, including Managed IT Services.
The oldest type of support service is the break/fix model. This type of IT provider is aptly named, as they take a reactive approach in waiting until they receive a report that something is broken, and they show up to fix it. They charge an hourly rate instead of a flat monthly fee and are usually highly skilled at deskside repairs. For decades, this was the most prevalent type of support in the IT world for small and medium sized business. The reason being, these small to medium businesses (SMB) generally had fairly simple IT environments. Additionally, these businesses largely were not targeted by threat actors, therefore they did not have to prioritize cyber security threats like all business do today.
This model worked well for a long time and is still a good fit for a select few companies. The break/fix model has significant downfalls though, which generally outweigh any positive aspects that this approach provides. These service providers usually have several clients, if not dozens of them. When multiple clients are experiencing issues at the same time, someone will always be waiting longer than they want to – often waiting for days – before receiving an appropriate level of support. The cost of this downtime can be quite significant, and often materially impacts a business’s ability to operate. It can lead to lost productivity, lost sales, and significant reputation damage for a business owner. There are often additional costs associated with this model as well that may not be made clear to businesses. There can be significant costs associated with tools – things like antivirus, remote access, and network monitoring can be hidden costs that significantly increase the total monthly cost of a break/fix model.
The more modern and effective type of IT Service Provider is a Managed Service Provider. A Managed Service Provider takes a proactive approach to prevent issues before they occur instead of the break/fix model of resolving issues after they pop up. This saves significant downtime for businesses and is often the key value factor that leads business owners to go with a Managed Service Provider when selecting an IT Company.
By using effective monitoring tools and teams of skilled technicians and engineers, Managed Services Providers are able to detect and respond to many issues before they manifest at the end user level. When issues do arise, these service providers have teams of qualified technicians and engineers waiting to respond remotely, and if needed come onsite to fix the issue. The focus is getting an issue resolved as quickly as possible while mitigating the impact to the business. Having teams of professionals allows Managed Service Providers to respond sooner and more effectively than a one-man shop. The other advantage of having a team is you don’t have to count on the knowledge of one person. The IT world is vast and ever-growing, and there is no way any one person can have the knowledge or experience to solve every issue that may come up. Having a team of people with a wide range of knowledge and skills related to all different topics within the IT industry can be tapped into means your issues get resolved quicker, and your business can get back to operating sooner. Risks of things such as lost productivity, lost sales, and significant reputation damage for negatively impacting a business will be greatly reduced.
The third type of IT Support Model is an in-house IT team. Generally, the in-house IT model is a model used by larger or enterprise class organizations that can afford to hire a robust team of skilled and experienced professionals to support their IT environment. This is usually the most expensive model, as the team required to support a large-scale environment will demand high salaries, in addition to paying benefits.
For many companies of significant size, an in-house IT team makes sense. Many of these companies will choose to augment their teams with a managed service provider, as the experience of their team may leave a few gaps. This is most often seen in the cyber security arena. Because cyber security is growing rapidly, traditional IT providers and teams are often not able to keep up and will choose to turn to dedicated professionals to give them a boost in this area.
Why an IT Managed Services firm is a great value for most SMB’s
Most business owners want to focus on what they do best run their business! Businesses generally do not want to stay awake at night worrying about the health of their IT systems, or any of the possible cyber security threats. This is where an effective Managed IT Services firm can shine and prove their value.
By taking an aggressive and proactive approach in managing a businesses IT environment, Managed Service Providers can effectively prevent many issues before they arise. This allows businesses to spend their valuable time focus on delivering their goods and services in a timely manner without IT related delays. Additionally, the current state of modern technology often allows Managed IT service providers to operate effectively without taking up any of the businesses physical space or resources, almost all of this work that an IT Managed Service Provider does can be completed via remote support.
Another way in which most Managed Service Providers add value for SMBs is the time spent learning about the client, their business, and how they use technology during the onboarding phase. Throughout the onboarding phase, engineers from the IT service provider will create extensive technical documentation that outlines the existing environment in detail to aid in any necessary troubleshooting down the road. The knowledge of the business and people allow the MSP to provide custom tailored strategic guidance to help their client not just keep their technology running but find ways to gain business efficiencies and advantages using new or existing technology.
This strategic guidance is often what really sets a Managed Services firm apart from a break/fix type company. Most small businesses can’t afford to have a full-time Chief Information Officer or Chief Information Security Officer. Instead, when they work with an IT managed service provider, they get an full team of seasoned professionals who will sit at the table during strategic planning sessions and give advice related to cyber security, software vendor selection, infrastructure planning, and even guidance on whether it makes sense to move to the cloud. The partnership with an IT managed service provider will ultimately help businesses stay up to date on their technology and cyber security posture.
What type of company should hire an IT Managed Services firm?
In short – all companies could benefit from an IT Managed Services firm!
Whether it is using a Managed Services Provider to fully manage all assets of technology and cybersecurity or using them to augment an existing in house team, or even just for strategic services, the beauty of IT Managed Services is that it can be tailored to fit the needs of almost any business in any industry.
In today’s world, the value of technology to a business is immeasurable – but it needs to be reliable. That’s where an IT Managed Services Provider comes in. A good MSP can make sure that their clients’ technology is up and running at peak efficiency, in addition to providing protection from cybersecurity threats.
Managed Service Providers can cover business in all sorts of industries, from banking and finance, to automotive, to manufacturing – if a business relies on technology, they will benefit from talking to an MSP.
How much does managed IT support cost?
The cost of Managed IT support depends on a lot of factors. Those can include the quantity of people, PCs, and Servers in the environment, the scope of services requested, and the amount of data present in the environment.
What are some advantages of working with a IT Managed Services Provider?
- Saves Time
- Amplifies Productivity
- Boosts Efficiencies
- Get all of your IT needs mapped in one place
- You can focus on what you do best
- An IT Managed Service Provider normally has Tier 1, Tier 2, and Tier 3 technologist that can service most parts of your IT infrastructure
What are some of the Items that an IT Managed Services firm is considering when pricing for companies?
Managed IT service provider pricing includes the amount of service options, networks, cloud or on – premises solutions, and needs like services, time, number of users, number of servers, amount of data, evolving needs, etc.