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How are Managed Services Priced?

What goes into Managed Services Pricing?

In a world where our reliance on technology continues to grow, it can be hard for small businesses and non-profit organizations to keep up with their Information Technology (IT) demands and day-to-day responsibilities. Many fall behind on backups, patches and security while the risk of facing an IT outage only increases. If that happens, you can lose access to your network and therefore your customers. 

Just like larger companies, small businesses and non-profit organizations need the proper IT resources and support to keep their operations running smoothly and efficiently. That's why many businesses now opt for full-service IT providers.

What are managed services?

Managed IT services basically refers to the outsourcing of your daily technology needs to a professional IT service provider. A reputable provider will typically take on the responsibility of monitoring and managing your technology as well as resolving any issues for you. This includes services like:

  • alerts
  • security
  • patch management
  • data backup as well as data recovery for a number of client devices like desktops or notebooks
  • server management
  • storage systems Management
  • network management
  • application management
  • Reporting

The goal of managed services is to allow you, the business owner, to concentrate on what you do best without the interruption of IT issues.

What should you look for in an Edmonton managed services provider?

First, think about your day-to-day IT requirements as they stand right now. How often are daily operations interrupted? Do you have any support or are you unsatisfied with your current level of support? Where do you see inefficiencies and how are they affecting your business? 

With those answers in mind, consider hiring a managed services provider who is willing to work with you to find the perfect technology balance that will enhance your business or non-profit organization. 

Look for a provider who understands your industry best whether it be the non-profit sector, small businesses or medium sized businesses, or large companies.

What is the difference between remote and onsite support?

Managed IT services are typically designed with remote support in mind. The fact that most of the monitoring, managing and problem resolution can be done from a remote location cuts costs for the customer. There is no reason to charge for travel time or personnel costs because all of the IT support tools and team members are concentrated in one area. Much more efficient than sending out a single technician. 

There will be cases, however, where it will be absolutely necessary to have onsite support, such as during the implementation process where hardware needs to be installed and connected to the network. 

For most managed services providers, having remote support allows them to offer customers a lower support cost, increased quality of service and better security with the option to bring in onsite support if necessary.

What are the factors in managed services pricing?

There are numerous ways of pricing managed services. Most providers will have a couple of different pricing models to offer their customers, so it is up to you to choose the one that will best fit your business or organization. Here are some of the most popular pricing models for managed services: 

Monitoring only - This model offers your organization or business the benefits of monitoring and alert services for a flat fee. Various levels of service can be added to include: basic incident resolution, anti-virus and anti-spam protection, patches, security updates and backups.

Per device - One of the easiest to quote and understand because it involves basic flat fee pricing based on each device. An example: $99 per managed network, $250 per server, $70 per desktop and so on.

Per user - Very similar to the per device model as a flat fee is attached to each end user and covers their support needs for all devices including office PC's, home PC's, laptops, smartphones, tablets and more.

 Tiered - This price model involves bundling certain managed services into packages at different price points. As the price goes up, so does the added value of each package. An experienced provider will work with you to find the best fit based on your technology needs.

Service level agreement or SLA - This is the most extreme of all of the pricing models because it is based on a written agreement between the client and provider who together have decided on the level of support needed and the expectations for their managed services.

What is typically considered in or out of scope and how does that affect pricing?

Essentially, scope refers to the boundaries set in place to determine the extent of a certain project. It is these predetermined boundaries that outline what responsibilities fall in or out of scope. 

When certain duties or responsibilities are considered in scope, this means they are accounted for in the budget and the parameters of the project. An activity that falls out of scope has not been accounted for the in original planning stages and is not included in the budget. 

An example of this would be hiring an managed services provider to monitor and maintain a network of 20 PC's. The duties required to keep this network up and running would be considered in scope. However, say you need to add another 20 computers to your network. The set up, equipment and other duties necessary to complete this task would be considered out of scope.

 What does the average business spend on IT? 

Non-profit organizations - According to this Nonprofit IT Staffing and Spending Survey, non-profit organizations allocate an average of 2.7% of their budget to IT costs.

Small businesses (100 staff or less)- Spent the most at an average of 6.9% of revenue on IT. 

Medium-sized businesses (200 staff or less) - Mid-sized businesses spend an average of 4.1%. 

Larger businesses (500 staff or less)- The larger companies are only spending 3.2% of revenue.

Why would you need managed services?

No business owner can do it all. That's where we come in. SC Systems takes care of all your technology needs so that you can focus on what you do best. 

SC Systems is a full-service IT Management company. Naturally, there are many facets involved when we manage and maintain your technology. We offer IT Consulting to all of our customers. We understand your business first and tailor our services to fit your unique needs.

We take care to ensure that your data is protected from loss, we maintain your configurations and we provide you with regular reporting so you always stay informed.

Technology is our passion and we aim to serve small and medium-sized businesses and non-profit organizations like yours. We take you through every step of the process and we are always available to answer questions. Call 1.877.249.8377 to get connected to worry-free technology

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