Everything You Need to Know About Managed IT Services Pricing

Managed IT Services Pricing

The world of managed IT services is rife with complexities, nuances, and hidden intricacies that often make it a challenge for businesses to comprehend. Among these complexities, one element stands as particularly critical yet often misunderstood - pricing.

Whether you're a startup seeking to leverage technology for growth, or an established company looking to streamline operations, knowing the cost implications of outsourcing your IT operations is crucial.

“Managed IT services pricing isn't just about numbers. It's about understanding value, assessing risk, and most importantly, optimizing ROI. It's a nuanced subject where factors such as the size of your organization, the extent of services required, and the level of expertise needed all interplay to define the cost,” says John Degen, CEO of Cutting Edge Networks.

In this blog, we’ll provide insight on:

  • Some of the common factors that determine managed IT costs and managed IT service rates
  • Managed IT services ROI calculator
  • And more managed IT pricing information!


Managed IT Services: What Are They & Why Do You Need Them?

Managed IT services refer to the practice of outsourcing a company's IT functions and responsibilities to an external provider known as a Managed Services Provider (MSP). The MSP takes over the management, operation, and responsibility of the business's IT system, which could include servers, networks, software, hardware, and other technological tools. The managed IT services market is now estimated to be worth over 671.14 billion dollars in value.

Managed IT Services Pricing

Image Credit: Fortune Business Insights


Over 92% of G2000 businesses are leveraging managed IT services today due to the immense number of benefits they offer, including:

  • 24/7 monitoring and support
  • Seamless data backups and recovery
  • Enhanced cyber security
  • Cost savings
  • Scalability opportunities
  • Reclaimed focus on core business
  • And more

Let’s take a look at some of the common managed IT pricing models to see how your business can leverage these benefits sooner rather than later! But first, check out these additional resources to learn more:


Common Managed IT Pricing Models: Which is the Right Fit for Your Business?

How much do managed IT services cost? Before getting into our managed IT services price list, let’s take a look at some of the different pricing options. Managed IT service providers typically offer several pricing models to cater to various business needs and budget constraints. The most common models include:

Per-User Pricing Model: In this model, businesses are charged managed IT services rates based on the number of users who need the IT service. This is an ideal model for businesses with employees who use multiple devices since it typically covers service for all of an individual's devices.

Per-Device Pricing Model: This managed IT services pricing model charges based on the number of devices you have that require support. No need for a managed IT services calculator – it's a straightforward model that is usually best suited for businesses where each employee uses one device.

Tiered Pricing Model: This pricing structure offers different levels, or tiers, of services at varying price points. Each level or tier offers a different set of services, with the price increasing as more services are added.

A La Carte Pricing Model: This customizable pricing option allows you to select and pay for only the services you need. This can be beneficial for businesses with very specific IT requirements or budget constraints.

Value-Based Pricing Model: The value-based model is based on the perceived or actual value the services will bring to the business, rather than on a specific number of users or devices. It's often used for high-level services like strategic consulting.

Get Predictable Managed IT Services Pricing with Cutting Edge Networks

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Questions to Ask About Managed IT Pricing

Ask these questions when deciding between MSPs to ensure you get the most value for your money:

  1. What services are included in the package?
  2. How is the pricing model structured, and how does it align with our business's specific needs?
  3. Are there additional costs for extra services or support?
  4. How scalable is the pricing model as your business grows?

The answers to these questions will provide a solid foundation for your decision-making process.


How Much Do Managed IT Services Cost?

Now, the information you really came for: how much do managed IT services cost? There are several factors impacting this number and different ways to determine it, including a managed IT services cost calculator and other tools – but your surest bet is to meet directly with the MSPs by booking a free consultation.

On average, however, you can typically expect to pay anywhere between $125 to $250 per user per month depending on the number of devices you sign on for. This can equate to anywhere from a few hundred to a few thousand dollars per month.

How can you determine the ROI of this endeavor? A managed IT services ROI calculator! The equation is as follows:

ROI = (Net Profit - Cost of Managed IT Services) / Cost of Managed IT Services * 100

Boost Your ROI with Cutting Edge Networks


Choose Cutting Edge Networks for Predictable, Cost-Efficient Managed IT Pricing

Choosing Cutting Edge Networks for your managed IT services provider goes beyond just managed IT costs. We offer tailored solutions designed to match your unique needs and strategic objectives. Our commitment is to deliver unparalleled value and exceed customer expectations consistently.

With a seasoned team of IT professionals, 24/7 support, and a robust suite of services, we strive to provide a seamless, secure, and effective IT environment that enables your business to thrive. Beyond being a service provider, we aim to be your trusted partner in achieving your business goals, driving productivity and innovation, and ensuring a competitive edge in your industry.

Managed IT Services Pricing

With Cutting Edge Networks, you're not just investing in managed IT services; you're investing in a reliable partnership and a brighter future for your business. Contact us today!

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