What are the Costs of Managed IT Services?

Learn about the factors that affect the cost of managed IT services and how to budget for them.

What are the Costs of Managed IT Services?

If you're leveraging an external IT provider, they can likely offer you several types of software and hardware. Typically, the software has an additional cost, unless it is included in the cost of your network security offering. Well, they know that you may never consult them again; also because they often address emergency problems caused by lack of protection or preventive maintenance. In short, they know you need them and they will pay whatever the cost.

Isn't THAT also a vulnerability? Protection against downtime costs is essential. By investing in the latest in cybersecurity, using a virtual server for when your internal server goes down and having backups of all your important files in the cloud, you can avoid the cost of downtime. For small and medium-sized businesses, these costs can be overwhelming. Especially when they come out of nowhere. The cost of managed IT services can vary greatly depending on the complexity of your IT environment, the demands of your business, the number of technology users you have, any additional projects you may need to execute, and more.

Others may be looking to hire a dedicated IT person, but aren't familiar with all the costs involved in running an IT department. These onboarding fees are typically a one-time fee charged in addition to the hourly or monthly cost of managed IT services. Employing a team with the skill set to manage all your IT needs is costly, so only large corporations tend to do so. Factors affecting cost are the number of staff, size and sophistication of your IT systems, and whether you outsource some or all of your technology management functions. To get an idea of what your costs might be, it's important to understand how managed IT services are priced.

This comprehensive model provides the greatest predictability in the cost of managed IT services and allows a company to budget for its expenses. Nearly every professional IT company offers on-site support, but to find out where the differences lie, it's important to research what an onsite visit costs. While managed IT services are the recommended option for most businesses based on cost and efficiency, other options are available. This makes it difficult to get an overview of IT spending as a fraction of operating costs or as a percentage of revenue. If you're a larger organization, the combination of an in-house IT manager with an MSP may be just what you need to drive your business to greater heights at a reduced cost.

Oscar Collari
Oscar Collari

Hipster-friendly music expert. Amateur beer scholar. Infuriatingly humble sushi trailblazer. Avid webaholic. Certified social media practitioner.