Technology |April 9, 2019

Managed IT Service Provider: What are the Pricing Models and Options?

Sean Stynes
April 9, 2019
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Hiring a Managed IT Service Provider (MSP) doesn’t mean you have to give up operational control over your information technology. Indeed, it’s important that you and your MSP partner work in tandem to make cost effective decisions regarding your daily operations, mid-term plans, and strategic direction.

Generally speaking, information technology outsourcing can be “managed” by the third party, or “co-managed” with your own internal part-time or full-time IT staff. In the latter, your staff generally takes initial responsibility for end user support, to support specific internal applications and software. With both, the MSP guides decisions by providing you with options and insights in the following general categories:

Your BHAG and Strategy: Effective, current, streamlined IT produces results for today, but your MSP should also be helping you to conceive, plan, and create your “Big Hairy Audacious Goals” for the future.

Infrastructure: You’ll have choice in ownership, from outright purchase, lease to purchase, or renting new equipment. Similarly, network and workstation decisions and integration of remote devices are all important considerations for your work environment, culture, and cash-flow.

Software: Ensuring your staff has access to and properly utilizes proven innovative tools to maximize productivity and customer satisfaction, while not overpaying for outdated or redundant programs, is an important task of your MSP.

Data Storage and Backup: Your MSP will advise your on-premise and off-site alternatives to help determine the combination that best fits your operational and back-up needs.

Security: The ever-increasing complexity of IT security and its paramount importance to your company’s reputation and legal liability necessitates a MSP with advanced measures and proven practices to remain at the forefront of access control and data usage at every level.

The cost for a “co-managed” plan will generally be about 1/3 less than that for a “managed” contract. While competitor’s prices will generally be fairly similar, most important is to be sure you have fully conveyed your needs and expectations, and understand the roles and responsibilities of, a potential MSP. As you work through the specifics it will become increasingly clear whether a good fit exists.

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