According to the U.S. Small Business Association, 60% of small businesses close within six months of a cyberattack. And while having the right IT support is crucial, managed IT services pricing can be confusing for many small businesses.
Join us as we take a closer look into the key factors that impact the cost of outsourced IT services. From the types of services offered to pricing models and how businesses can optimize their IT budgets, this guide will help you get the IT support you need without breaking the bank.
What Are Managed IT Services?
Managed IT services offer businesses a way to outsource their IT needs to a third-party provider. There are three basic aspects of managed IT services that small businesses should consider:
· IT Support and Maintenance
· Proactive Monitoring and Security
· Data Backup and Recovery
IT Support and Maintenance
Managed IT services often include day-to-day support and maintenance. This covers everything from troubleshooting technical issues to maintaining software updates.
Small businesses rely on these services to keep operations running smoothly without the need for a dedicated internal team. Having this kind of support ensures that any IT problems are handled quickly and professionally, allowing employees to focus on their work.
Proactive Monitoring and Security
Proactive monitoring is a key benefit of managed IT services. Providers monitor systems around the clock to detect potential issues before they become major problems.
The service is especially important for cybersecurity, where early detection of threats can prevent data breaches. For small businesses, this level of protection is often beyond what they could afford in-house, making outsourced IT services a valuable option.
Data Backup and Recovery
Another vital service is data backup and recovery. Managed IT providers offer solutions to protect critical business data by performing regular backups and creating recovery plans. If there's a system failure or cyberattack, a business's data can be restored quickly. And this minimizes downtime and losses.
Factors That Influence Managed IT Services Pricing
Managed IT services pricing can vary widely depending on several factors. Small businesses need to understand what drives these costs in order to make informed decisions. There are three primary factors that affect the pricing of managed IT services:
· The size of the business and IT infrastructure
· The level of service required
· Compliance and security needs
The Size of the Business and IT Infrastructure
The size of a business often determines the scope of IT services required. A small business with fewer employees and devices will generally have lower costs compared to a larger company. The complexity of the existing IT infrastructure also plays a role.
If a business has more servers, workstations, or network components, it will need more comprehensive services, which can increase the price. Managed IT providers tailor their pricing based on these factors, so smaller businesses typically pay less than their larger counterparts.
The Level of Service Required
Managed IT services come in various levels, from basic support to fully managed solutions. Some businesses might only need occasional technical support, while others may require constant monitoring and advanced cybersecurity measures.
The more services a business needs, the higher the cost. For instance, round-the-clock monitoring or advanced data protection will come at a premium compared to simple maintenance and software updates.
Compliance and Security Needs
Many industries have specific compliance regulations regarding data handling and security. Businesses in sectors like healthcare or finance need managed IT services that help them stay compliant with strict rules, which often leads to higher pricing.
Security requirements, such as advanced encryption or disaster recovery planning, can also increase costs. A provider with expertise in these areas is crucial for businesses that face stringent regulatory demands, but this expertise comes with a higher price tag.
Comparing In-House IT vs. Managed IT Services
Small businesses often face the decision of whether to hire an in-house IT team or to outsource their IT needs. Both options come with their own set of benefits and challenges. The key differences between the two lie in cost, expertise, and flexibility.
In-house IT teams provide direct control over your company's technology, which can be an advantage for some businesses. However, maintaining a full-time IT staff can be expensive.
Salaries, benefits, and ongoing training costs can add up quickly. For many small businesses, this expense is hard to justify, especially when their IT needs fluctuate.
On the other hand, managed IT services offer more flexibility. Businesses pay for only the services they need, which can result in significant cost savings.
Managed service providers also offer access to a broader range of expertise than an in-house team. They keep up with the latest technology and cybersecurity developments, allowing businesses to stay competitive without the burden of managing everything in-house.
Managed IT Costs: Common Pricing Models
Per-user pricing charges based on the number of people using the service. It's ideal for businesses that have a consistent number of employees.
With this option, businesses pay a set amount for each employee, which covers all their IT needs. This model provides a predictable monthly cost and works well for businesses where employees have multiple devices.
In the per-device model, businesses pay for each device that requires service, such as computers, servers, or printers. It can be useful for companies with shared workstations or fewer users but a higher number of devices.
Flat-rate pricing is a fixed monthly fee for all IT services. This model can be the most straightforward, as it covers all services under a single payment.
For businesses with a wide range of needs, this option allows them to manage their budget without worrying about fluctuating costs. It's often chosen by businesses that prefer simplicity in managing their IT expenses.
IT Services for SMBs: Outsourced IT Pricing
Understanding managed IT services pricing helps small businesses choose the right level of support without overspending.
IntelliSystems was founded in 1993 to help local businesses embrace computer and telecom technology. As IT and telecom have evolved, so have we. From cloud solutions, cybersecurity protections, and compliance management, we provide hands-on business technology support. Today, we partner with clients of all sizes, offering strategic guidance and innovative solutions to meet their tech needs while ensuring long-term success.
Get in touch today to find out how we can help with your managed IT needs!