Managed Services Pricing in Chicago: Key Factors and Essential Insights
In the ever-changing world of technology, businesses constantly seek ways to improve their IT infrastructure without incurring additional costs. Managed IT services companies have become a popular solution to achieve this goal. As you navigate the many options, you might ask yourself how much you should be paying for these services and what kind of services you should receive for your current expenditures.
Understanding better managed IT services pricing and agreement types can ultimately lead to significant cost savings for your business. Choosing the right plan that aligns with your specific needs and goals is essential while ensuring a reliable vendor supports it.
- Explore different managed IT services pricing plans to maximize your savings.
- Understand the various agreement types to select the best plan for your business.
- Choose a reliable vendor to support your managed IT services for optimal results.
Using Managed IT Services for Cost Savings
Boosting Team Efficiency by Minimizing Downtime
Implementing well-organized IT systems and technology strategies allows employees to maximize efficiency rather than focus on computer issues and time-consuming system updates. A managed IT service ensures that when problems arise with your IT assets, your employees don’t need to fix them – the managed IT service handles it.
Notably, 140,000 hard drives fail weekly, and 44% of businesses believe an hour of downtime costs them about $10,000. With a managed IT service, your employees can switch to another device and continue working while the issue is resolved.
Enhanced Network and Data Security for Peace of Mind
Data breaches are all too common, with over 260 million sensitive records exposed in the first four months of 2018 alone. Utilizing a managed IT service to keep your IT assets up-to-date on security patches, updates, and antivirus software allows you to focus on growing your business rather than worrying about becoming one of the 60% of companies that go out of business within six months of a major data disaster.
Reducing Your Company’s Overall IT Expenses
Hiring managed IT services may initially seem like an added expense, but it has been proven repeatedly to save businesses money. Without a dedicated IT professional, employees waste time troubleshooting their computer issues or waiting on help desk personnel.
Even when an in-house IT professional is hired, they may not always have enough work to occupy them. Managed IT services are focused solely on your company’s IT needs and constantly work on improving their efficiency. These services can share the costs of education, new technology, and equipment across multiple clients, ultimately reducing expenses.
The Significant Issue in Managed IT Services Advertising
A prevalent tactic in various industries, including IT, is withholding explicit pricing details until it becomes crucial. This approach is based on the notion that potential clients are more likely to be open-minded about the service’s cost when they gather sufficient knowledge beforehand.
This mindset seemingly originates from an outdated belief system emphasizing discretion when discussing financial matters. However, knowing the associated expenses is essential when considering Managed IT Services.
Proper budgeting for your technology requirements becomes even more challenging as a client when you need to conduct extensive research to determine the actual cost.
Managed Services Pricing from CTI Technology
The price of managed IT services can differ based on the intricacy and scope of your business network. CTI Technology’s team of professionals can help you determine the right managed IT service plan for your needs, fitting within your budget. The services offered include:
- Workstation Cleanups
- Virus and Malware Removal
- Desktop Optimization
- User Management (additions, removals, changes, renaming, etc.)
- Vendor Management
- Network Reviews and Consultations
- Business Application Support
- Expert Microsoft 365 Support
- Managed Microsoft Updates and Patching
- Advanced Endpoint Protection (Anti-Virus)
- Hardware and Software Audits and Inventory
- Performance & Preventative Maintenance Reports
- VPN and Remote Access Management
- Computer and Server Health Reports
- 24/7 Monitoring and Management Tool
- Remote Support
- Quarterly Email and Network Security Audits
- Average Response Time of Less Than an Hour
Stay confident relying on CTI Technology’s managed IT services, with a knowledgeable, neutral, and clear approach to supporting your business network.
Questions Normally Shared Regarding The Pricing of Managed Services
When considering Managed IT Services, it’s crucial to understand the pricing structure, as it plays a significant role in choosing the exemplary service. This FAQ section will highlight some critical aspects of Managed Services pricing.
- How is Managed Services pricing structured? Typically, Managed Service Providers (MSPs) base their pricing on either a “per user” or a “per device” model. This means that charges depend on the number of users or devices connected to the network. The MSP bears the expenses for agents (management devices installed on all devices), anti-virus programs, additional services, and support for each endpoint. In summary, this flat rate should cover the MSP’s costs and allow their business to grow.
- How do Managed IT Services compare to Break/Fix services? Break/Fix services are the conventional form of outsourced IT services, where your computers are fixed only when something goes wrong (e.g., data loss, hardware failure, virus). Conversely, Managed IT Services involve continuous maintenance and proactive support, which comes at a higher cost.
- Are Managed IT Services expensive? If you rely on Break/Fix IT support or an in-house tech-savvy employee, Managed IT Services will seem more costly. However, the investment is necessary to adopt a comprehensive IT support system that prevents possible issues.
- What is the typical cost range for Managed IT Services? Managed Services pricing varies widely from $10 to $250 per user/device per month. The vast range is because the support levels included and the types of businesses catered to differ significantly. While $10/month may sound affordable, it won’t provide the same quality of services as those charging $250/month. Business owners who pay $250 per user a month value the guaranteed effective service for their multi-location or larger enterprises, as it eliminates concerns about hardware cost, additional bills, and long response times. However, most businesses prefer the $10-$100 per user range. These clients are comfortable working with smaller IT businesses, handling extra bills for projects, onsite work, and even remote support.
- What should I consider before deciding on a budget for Managed IT Services? Before selecting a budget for support, review various agreements to help manage your expectations. Knowing what you’re willing to pay for and understanding the comprehensiveness of your current agreement will guide you toward making an informed decision about Managed IT Services pricing.
Exploring Common Managed IT Services Agreement Types
Time and Material
This option, with a rate of $75-200 per hour, is an old-fashioned plan where the IT provider is paid when issues occur, similar to a break/fix model. This plan is not usually considered a “managed” service.
The monitoring plan offers remote management and monitoring tools ranging from $10-$30 per user/device monthly. This foundational approach to Managed IT Services allows IT providers to manage patching, alert for potential network issues, and optimize networks. Additional expenses may be incurred, such as remote support, onsite support, projects, and consulting.
Costing between $30-$100 per user/device per month, this common agreement type covers everything in the monitoring plan, a certain level of consulting, and unlimited remote support. As most tickets are resolved remotely, this plan is practical and budget-friendly. However, additional expenses may vary monthly for firewalls, backups, Microsoft Office 365/G Suite, projects, and onsite support.
The “All-in” Model
Typically priced at $100-$300 per user/device per month, this comprehensive plan is well suited for businesses with high IT expectations and a preference for a defined budget. The “All-in” model may include:
- Hardware upgrades every 3-4 years
- Project work
- Remote and Onsite support
- Dedicated technology consultant
- Staff augmentation in some cases
- Business continuity
- Applications (Office 365, G Suite, etc.)
Despite a higher monthly invoice, this plan offers easy budgeting, quick responses, and minimal downtime.
Determining the Best Managed IT Services Plan for Your Business
Choosing the ideal Managed IT Services plan for your business mainly depends on three vital factors:
- Location: Managed Service Providers (MSPs) in larger cities such as Tampa, Miami, and New York City tend to charge higher prices. However, since most (90-95%) support tickets are resolved remotely, MSPs can now offer services over broader regions. Therefore, a reliable MSP from a smaller market might provide a competitive rate while maintaining efficient support and response time.
- Business Size: If your business has over 25 users, it falls under the MSP’s ideal customer range. MSPs may have fixed monthly prices per user, but you might be able to negotiate a minor adjustment that could save you money over time.
- Type of Agreement: MSPs offer different agreements, each containing specific services. For instance, if an MSP proposes a Remote Support plan that covers everything except onsite assistance and additional services, you could negotiate to include limited on-site tech support during the first month. While MSPs may not agree immediately, they could modify the agreement to win your business. Remember, most MSPs retain clients at around 95%, so use that to your advantage.
When evaluating your MSP agreement, assess the following points:
- Would partnering with an MSP in a smaller market save money without compromising support quality?
- Can you negotiate the per-user cost, as your business is within the preferred MSP customer range?
- What about including additional services in the agreement?
To make the right decision, compare your current IT expenses and satisfaction with the services you receive. Your cost could be influenced by factors specific to your business, such as location or staff size.
Ultimately, the goal is to find the most affordable rate that resolves all your IT challenges. The expenses can significantly vary based on your business type and location. It is often possible to save money while retaining excellent support levels or slightly increase your spending to address all IT issues.
Frequently Asked Questions
How do MSPs decide their prices?
Various factors include the scope of services offered, the complexity of the client’s environment, and local market conditions.
Pricing model variables for an MSP
Service level expectations, technology requirements, and customer support needs influence an MSP’s pricing model.
Typical pricing configurations for managed services in Chicago
Common pricing structures include fixed monthly, per-device, and per-user rates. Some providers may offer tiered pricing or a la carte services.
Average hourly fees for Chicago MSPs
MSPs in Chicago generally charge between $100 and $200 per hour, though rates may vary by service category, expertise, and provider.
Comparing per-user and per-device pricing models in Chicago MSPs
Per-user pricing might offer greater transparency and simplicity, while per-device pricing may be more cost-effective if users have multiple devices.
Extra expenses to expect with Chicago MSPs
Additional costs might include onboarding and offboarding fees, consulting fees for projects outside the scope of the contract, and fees for implementing new technologies.
Why CTI Technology Is The Ideal Managed IT Services Provider For Your Chicago Enterprise
CTI Technology offers top-notch managed IT services in Chicago, delivering excellent value for your business at competitive pricing. Trust their experienced team to cater to your Chicagoland region needs.