Managed IT Services Pricing – How Much Does It Cost?

Managed IT Services Pricing

When weighing up your options for IT service providers, one of the obvious considerations is their managed IT services pricing. What’s the monthly cost? What’s included? Are we locked into any contracts? 

In this post we’ll look at managed IT service pricing, the ‘old school model,’ factors that influence the cost of IT services, SLAs and other pricing considerations. Let’s get into it.

If you’re looking for flexible IT pricing, take a look at how our services are packaged. 

Old School Pricing Models

Let’s start by talking a bit about how things used to be. Back in the day, the pricing models around managed IT services were typically fixed and lacked the flexibility that modern businesses need. For some service providers, that hasn’t changed!

We’ve come across many scenarios where a business owner / director wants to switch IT companies only to be confronted with the shock that they’re locked into a contract with a 3-6 month exit clause, often for services that they no longer need.

You may have found yourself locked into lengthy contracts, paying for services you don’t want, or contending with less-than-stellar support. In short, it was a one-size-fits-all approach that no longer works for a modern, agile business environment.

View Our Managed IT Services

Factors That Influence Managed IT Services Pricing

Fast forward to now, and the landscape of pricing models for managed IT services in Brisbane has evolved. IT managed services pricing is influenced by a number of factors, each of which can be tailored to your business needs. Let’s break these down.

Level Of Managed Services Required

The level of managed services required can range from partial to full management. Partial management could be as simple as monitoring your servers and alerting you of any issues, while full management involves handling all your IT needs from A to Z.

Level Of Support Needed

The level of support you need can also impact the pricing of your monthly service level agreement (SLA). Do you require 24/7 support or just business hours? Do you need onsite or virtual support? Do you need immediate phone response or is email support sufficient? The level of managed IT support you choose will have a direct correlation with cost.

Technology Required

Different businesses require different technologies, and the cost of these technologies can vary widely. Some may require high-end servers for data-heavy operations, while others only need basic desktop support. The technology required for your business will directly impact your IT services cost. 

Number Of Users And Locations

The number of users and locations your business operates in can also influence the pricing. More users and locations typically mean more complexity and thus, higher costs.

Length Of Service Level Agreements (SLAs)

The length of your SLA can impact cost too. Long-term contracts might offer better pricing per month but require a longer commitment.

Amount Of Data Backup Needed

The more data you need to back up, the higher the cost will be. This is due to the storage and management requirements of larger data volumes.

Number Of Software Licenses Needed

The number of licenses for software like Microsoft 365, Sophos, etc, also plays a part in determining the overall cost. As a Microsoft 365 partner in Brisbane we can provide you with better pricing options and also help you get the most out of your suite of MS365 apps.

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Service Level Agreements

Most IT companies will ask you to sign a SLA, but what is it? 

A service level agreement (SLA) defines the level of service you can expect from your managed IT services provider. It covers things like response times, resolution times, and uptime guarantees. A more demanding SLA may come with a higher price tag, but it also assures you of a higher service level.

How Much Can Your Business Save With Managed IT Services?

While cost is a consideration, it’s equally important to think about the savings that come with managed IT services. Outsourcing your IT often leads to reduced overheads and less downtime. In addition, it allows you to focus on your core business rather than getting tangled up in IT issues.

One of the greatest benefits is that with an SLA in place you have a fixed, predictable IT cost each month. This gives you certainty over your IT expenses and allows you to budget, forecast and plan ahead with accuracy.

Our Managed IT Service Pricing

Here at 9spheres Technologies, we’ve moved away from the rigid pricing models of the past. Our pricing structure is flexible and customised to your specific requirements. We understand that every business is unique and requires a unique IT solution. 

You choose the services you need (we can help with that) and the level of support you need. You pay one fixed monthly fee – no surprise hourly rates. Our SLA’s run month-to-month: no more lock-in contracts!

Benefits Of A Flexible Pricing Model

A flexible managed IT services pricing model allows you to only pay for the services you need. It offers scalability that adjusts to your business growth. Plus, it provides the freedom to add or remove services as your needs change.

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Pricing Red Flags

Just like anything else, if a deal seems too good to be true, it probably is. Be wary of providers who offer suspiciously low prices. They may cut corners, under-deliver, or hit you with hidden fees or exorbitant hourly rates. Another red flag is when services that are crucial for your operations are excluded from the base pricing.

Things That Are Often Excluded From Pricing

While we’ve already discussed the many factors that can influence the cost of managed IT services, it’s equally important to note what’s often not included in the base pricing. Remember, not all managed IT services are created equal, and there could be extras that you need to budget for.

IT Strategy Development & Implementation

Managed IT services pricing will often cover day-to-day support and management of your IT infrastructure. However, the development and implementation of an overarching IT strategy, which aligns with your business goals, might not be included. This could involve IT budget planning, risk management, and future technology adoption strategies. Speak to a Brisbane IT consultant first to understand what you need.

Projects & Major Changes

Your standard agreement may cover routine maintenance and small changes, but significant projects or major system changes may come with additional costs. This could include things like network overhauls, major system upgrades, or migrations to new platforms.

Products Such As Computers & Software Licensing

Physical products like computers, servers, or software licenses are often not included in the base price of a managed IT services agreement. These items usually come as an additional cost.

Onsite Support

Often managed IT services pricing includes remote support as part of the monthly package. However, if you require onsite support — when a technician physically comes to your location — this might come with an extra fee.

After Hours Support

Support during business hours is generally included in your service agreement. But if your operations require after-hours, weekend, or holiday support, you may need to pay an additional fee for this extended service.

Remediation Of Malicious Actions

While some level of security is typically included in managed IT services pricing, the remediation of malicious actions such as a cybersecurity breach may not be. This can be an additional service that involves identifying the breach, mitigating the impact, and ensuring systems are secure moving forward.

Security Audit, Monitoring & Response

Similar to the point above, while essential security measures might be included, a full security audit, continuous monitoring, and immediate response to threats may be additional services.

Training

Training for your staff to effectively use your IT systems or newly implemented technology may not be covered in your base agreement. If your team requires this, it could be an additional cost.

Next Steps

Start by evaluating how much you’re currently spending on IT, fixing mistakes, and inefficiencies. Consider your needs. 

What level of support and services are essential for your operations? Are you currently locked into an IT managed service agreement that no longer makes sense?

Reach out to us at 9spheres Technologies. We can help design a solution that meets your needs and aligns with your budget. After all, managed IT services should be about making your life easier, not harder.

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