Understanding MSP Managed Services: Software and Licensing
Introduction
This week on Ask Neadom, we dive deeper into Managed Services Providers (MSP) and explore the software and licensing that are typically included in these services.
Weathering the Storm
As we record this episode, Tropical Storm Michael is passing through South Carolina. Our thoughts and prayers go out to all the families affected. We hope for a swift recovery and rebuilding process.
Revisiting MSP Services
We previously discussed what managed services include, pricing models, and the overall value. This week, we focus specifically on the software and licensing aspects.
What's Typically Included
Most providers handle software in one of two ways: they either include it or they don’t. At Needham, we include it. This simplifies billing and makes it easier for clients to manage.
Included software often consists of:
- Microsoft Office 365 or Google Workspace (formerly G Suite)
- Antivirus and security software
- Email protection
- User training for phishing threats
Flexible Billing Based on Employee Count
One of the key benefits of our model is billing flexibility. If your employee count changes, your bill adjusts accordingly. For example, if you go from 25 to 23 employees, you won’t be locked into paying for 25 licenses.
Monthly vs. Annual Billing
Many small business owners prefer monthly billing over annual or multi-year contracts. It allows for better cash flow management and avoids large, unexpected expenses.
Avoiding Surprise Costs
Some providers charge separately for software, requiring you to pay vendors like Microsoft or Adobe directly. This can lead to unexpected costs. With our model, everything is bundled into one predictable monthly fee.
Budgeting and Resource Allocation
Bundling services into a single monthly payment helps businesses budget more effectively. It also frees up resources that can be allocated elsewhere.
Final Thoughts
When choosing an MSP, make sure you understand what’s included. Ask questions during the initial consultation to avoid surprises later. Knowing what to expect helps you plan better and avoid uncomfortable conversations about unexpected costs.
Conclusion
That wraps up this week’s episode. If you have questions, don’t hesitate to reach out. There are no dumb questions. Like or dislike the video, and let us know your thoughts. Stay safe, and we’ll see you next week!
