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How much does an MSP cost per month?

Published in Managed IT Services Cost 3 mins read

While there isn't a single "exact" fixed cost for Managed Service Provider (MSP) services, as prices vary based on numerous factors, recent industry trends indicate typical ranges, particularly for the widely adopted per-user pricing model.

How Much Does an MSP Cost Per Month?

The cost of an MSP typically ranges from $50 to over $250 per user per month, depending on the services included, the complexity of your IT environment, and the specific pricing model utilized. The most common pricing model for MSPs is the per-user model, where a flat fee is charged for each person accessing the IT services.

Per-User Pricing Model Trends

Current trends in managed IT services pricing show the following distribution among respondents offering per-user pricing:

Cost Per User Per Month Percentage of Respondents
$50–$100/user/month 22%
$101–$150/user/month 17%
$151–$200/user/month 11%
$201–$250/user/month 4%

This data indicates that the most frequently observed pricing bracket falls within the $50 to $100 per user per month range.

Factors Influencing MSP Costs

The variability in MSP pricing stems from several key factors:

  • Scope of Services: The most significant determinant of cost is the range of services included in the agreement. Basic services might include proactive monitoring and helpdesk support, while comprehensive packages often encompass:
    • 24/7 IT Support: Helpdesk and on-site support.
    • Network Monitoring & Management: Ensuring network health and performance.
    • Cybersecurity: Threat detection, prevention, endpoint protection, firewalls, and incident response.
    • Data Backup & Disaster Recovery: Solutions for business continuity.
    • Cloud Services Management: Managing cloud infrastructure and applications.
    • Software Patching & Updates: Keeping systems secure and up-to-date.
    • Strategic IT Consulting: IT roadmap planning and technology guidance.
    • Compliance Management: Assistance with industry-specific regulations (e.g., HIPAA, GDPR).
  • Number of Users and Devices: While some MSPs offer per-device pricing, per-user is more common. Larger organizations may sometimes benefit from economies of scale, leading to slightly lower per-user costs, though total costs will be higher.
  • Complexity of IT Environment: Businesses with highly customized software, legacy systems, complex integrations, or specialized hardware typically require more intensive support, which can increase costs.
  • Service Level Agreements (SLAs): More demanding SLAs, such as guaranteed faster response times, 24/7/365 support, or on-site presence, will command a higher price.
  • Industry-Specific Needs: Certain industries have unique IT requirements and stringent compliance regulations that necessitate specialized services, impacting pricing.
  • Geographic Location: Pricing can also vary based on the MSP's location and the local cost of doing business.

Understanding Your MSP Investment

When evaluating MSP costs, it's crucial to look beyond the monthly fee and consider the value provided. A well-chosen MSP can lead to significant savings by:

  • Reducing Downtime: Proactive monitoring and rapid issue resolution minimize business disruptions.
  • Improving Security Posture: Expert cybersecurity management protects against costly breaches.
  • Optimizing IT Spending: Strategic guidance helps avoid unnecessary technology purchases and streamlines operations.
  • Providing Access to Expertise: Small and medium-sized businesses gain access to a team of IT specialists without the overhead of hiring an in-house department.

To get an accurate quote, businesses typically engage with MSPs who will assess their specific needs, IT infrastructure, and desired service levels to provide a customized proposal.