Managed services
Welcome back everyone to When You Need em ask, Neadom. Last time we talked about managed services—what they are and what they mean for your company. Today, we're going to talk about how much they actually cost.
What's the Cost of Managed Services?
Hey guys, welcome to another week of Ask Neadom.
So Angel, what do we got to play today?
We were recently talking about managed services—what they are and how they benefit the company. But now we want to know: what's it gonna cost?
That's the million-dollar question, isn’t it?
It is—and hopefully it isn’t a million dollars!
Pricing Models
It’s a great question and really depends on the industry you're in.
There are a lot of factors that go into play, and it depends on the company you're working with.
Some managed service providers charge per PC or per server. Some charge only by user.
Some have customized pricing based on what they think it’s going to cost to support you.
It’s really kind of all over the board.
But for today, we want to focus on a per-user pricing model.
Varying Support Needs
We do a little bit of all those kinds of things because it really depends.
Some offices require more support than others.
Even though you’ve got 10 users, 10 users in a doctor’s office is not the same as 10 users in a law office.
They require completely different levels of support.
A law office may have 7 or 8 different applications, while a doctor’s office might have one.
So there’s not as many problems in a doctor’s office as there would be in a law office.
Win-Win Relationships
We want to make sure that whatever relationship we get into with a client is a win-win for both of us.
We don’t want to lose money, and they don’t want to spend too much money.
So it’s a win-win on both sides.
Typical Pricing Range
If we look at a per-user price, you can see providers charging as low as $75 per user per month and as high as $275 per user per month.
It’s a huge difference, and it’s not just that one’s charging more than the other.
There’s a lot that goes into managing a company’s IT infrastructure.
Proactive vs Reactive Support
Are they a proactive organization?
Proactive doesn’t mean showing up on time—it means anticipating issues before they happen.
Think of it like taking your car in for maintenance before it breaks down.
We want to be proactive and look out for issues before they occur.
Profitability and Productivity
We make the most money when our clients don’t have problems.
We charge a flat rate for IT services—whether they call us a thousand times a month or once, it’s the same rate.
If they’re not calling us because everything’s working, we’re most profitable.
Our team isn’t spending extra time solving tickets, and our clients are productive.
Best Practices and Prevention
We implement best practices across our clients to prevent issues.
It’s a win-win: fewer phone calls for us, and more uptime and productivity for them.
What’s Included in the Cost?
Someone charging $75 per user per month probably isn’t doing a lot of proactive work.
There’s not enough money in it to hire a level-three engineer to review infrastructure regularly.
They may not include licensing—Office 365, Google Apps, Adobe, etc.
Some providers do include licensing in their monthly cost.
Simplifying IT Management
Some companies prefer having multiple bills, but we try to be a one-stop IT source.
We make it simple for clients to manage everything.
Mature MSP Practices
A mature MSP takes a holistic approach.
Imagine having an internal IT guy—when you have a problem, you expect him to fix it.
That’s what a mature MSP does.
We’re not physically in the business, but we act like that guy.
We handle copier issues, alarm systems, phone systems—vendor management and renewals.
We ensure laptops are under warranty and protected.
That takes extra time and manpower, so we charge accordingly.
All-Inclusive Pricing
Higher pricing—like $275 per user—may include hardware.
We can bundle desktops, laptops, cell phones, tablets, servers into the monthly cost.
On average, a mature MSP (not including hardware) charges between $150 to $200 per user per month.
This covers proactive maintenance, licensing, and headache-free IT management.
Business Owner Benefits
The benefit is less work for the business owner and staff.
Everything is covered under one umbrella.
You don’t need to be an insurance expert or bookkeeper—we know IT and we know people.
We trust our experts and become your trusted advisor.
Business Consulting and Risk Management
We also offer business consulting.
We assess business risk from an IT perspective.
Some clients can’t afford downtime—even during hurricanes.
We ensure they have multiple internet connections and cloud services to stay operational.
Conclusion
That wraps us up for today.
Thanks again for tuning in to another episode of Ask Neadom.
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If you’ve got comments or questions, drop them below.
There are no dumb questions—we’ll see you next time!
Let Kotori Technologies Simplify Your IT
Ready to stop juggling vendors and unpredictable IT costs?
Let Kotori Technologies be your all-in-one managed service partner—proactive, reliable, and tailored to your business needs.
