What is the Cost of Managed Services?

What is the Cost of Managed Services?

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Okay, lets talk about the real deal: What does managed services actually cost?

What is the Cost of Managed Services? - managed service new york

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Its a question thats less about a simple price tag and more about understanding value, kind of like asking "Whats the cost of a good nights sleep?"

What is the Cost of Managed Services? - managed services new york city

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The answer isnt just the price of your mattress; its the value of feeling refreshed and productive.


With managed services, were talking about outsourcing certain IT functions (or other business functions, but lets stick to IT for this example) to a third-party provider. This could include things like network monitoring, cybersecurity, data backup and recovery, help desk support, and more.

What is the Cost of Managed Services?

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    The cost isnt just a single number, its a multifaceted thing.


    First, theres the pricing model itself. Common models include:




    • Per-device pricing: You pay a flat fee for each device managed (think computers, servers, printers).

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      This is often straightforward and easy to budget for.




    • Per-user pricing: You pay a flat fee for each user that the managed services provider supports. This works well if your IT needs are tied to the number of employees.




    • Tiered pricing: Services are bundled into different packages (bronze, silver, gold, etc.), each offering a different level of support and features at a different price point.

      What is the Cost of Managed Services? - managed service new york

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      This allows you to choose a plan that best fits your needs and budget.




    • All-inclusive (or flat-fee) pricing: A fixed monthly fee covers all agreed-upon services.

      What is the Cost of Managed Services? - managed services new york city

        This offers predictability and can be beneficial if your IT needs are relatively stable.




      1. Value-based pricing: The price is determined by the value the managed service brings to your business. This requires the managed service provider to understand your business goals and demonstrate how their services will help you achieve them. (This can be a bit harder to quantify upfront, but ultimately focuses on ROI).




      Then theres the scope of services.

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      Are you just looking for basic monitoring and maintenance, or do you need comprehensive support that includes strategic planning and project management? The more services included, the higher the cost (obviously). Think of it like buying a car: do you want the basic model, or all the bells and whistles?


      Beyond the direct cost, its crucial to consider the indirect costs (or, rather, the avoided costs).

      What is the Cost of Managed Services? - managed services new york city

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      Whats the cost of downtime due to a network failure?

      What is the Cost of Managed Services? - managed services new york city

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      Whats the cost of a security breach? Whats the cost of your IT staff spending their time on routine tasks instead of strategic initiatives?

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      (These costs are often much higher than people realize).

      What is the Cost of Managed Services? - managed services new york city

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      Managed services can help you avoid these costly problems.


      Finally, remember to factor in the quality of service. A cheaper provider might seem appealing at first, but if their service is unreliable or unresponsive, it could end up costing you more in the long run (in terms of lost productivity, frustrated employees, and potential for bigger problems down the line).

      What is the Cost of Managed Services? - managed service new york

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      Due diligence and checking references are crucial.


      In short, the cost of managed services is a complex equation. Its not just about the price tag, its about the value you receive, the risks you mitigate, and the opportunities you unlock. It requires careful consideration of your specific needs, a thorough understanding of the pricing models, and a realistic assessment of the potential benefits.

      What is the Cost of Managed Services?

      What is the Cost of Managed Services? - managed services new york city

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        Its an investment, not just an expense, when done right and understood.

        What is Fully Managed Services?