As a small business we understand the importance of budgeting for IT support while ensuring maximum value for every dollar spent. In this article, we’ll explore the true cost of partnering with a Managed Services Provider (MSP) and why it’s often a more cost-effective solution than maintaining a dedicated in-house IT team.
Understanding the Cost Structure of Managed Services
Managed Services Providers typically offer their services on a subscription-based model, where clients pay a fixed monthly fee for access to a comprehensive suite of IT services. This predictable pricing structure allows businesses to budget more effectively for their IT expenses without worrying about unexpected costs.
When does this model not make sense?
When your company is too small to regularly need managed services to maintain your IT infrastructure, or your business is so large that you can afford a dedicated IT department.
Cost Comparison: Managed Services vs. In-House IT
While the upfront cost of hiring an in-house IT team may seem appealing, it’s essential to consider the long-term expenses associated with recruiting, training, and retaining skilled IT professionals. Additionally, in-house IT teams often require ongoing investments in hardware, software, and infrastructure to keep pace with evolving technology trends.
The Hidden Costs of In-House IT
Beyond the direct costs of salaries and equipment, there are several hidden expenses associated with maintaining an in-house IT team. These include employee benefits, training programs, sick leave, and vacation time, which can add up quickly and strain a small business’s budget.
Benefits of Managed Services Providers
Partnering with an MSP offers several advantages over maintaining an in-house IT team. Firstly, MSPs provide access to a team of skilled IT professionals with expertise in a wide range of technologies and disciplines. This breadth of knowledge allows businesses to tap into specialized expertise without the need to hire multiple full-time employees.
Cost Savings Through Efficiency
Managed Services Providers leverage automation and remote monitoring tools to streamline IT operations and minimize downtime. This proactive approach helps businesses avoid costly outages and productivity losses, ultimately saving them money in the long run.
Scalability and Flexibility
Another key benefit of partnering with an MSP is scalability. As businesses grow and evolve, their IT needs may change dramatically. With managed services, businesses can easily scale their IT infrastructure up or down to accommodate fluctuations in demand or changes in business priorities, without the need for expensive hardware upgrades or additional hiring.
But Really, How Much Does It Cost?
At our MSP, our monthly pricing starts at $1,500 per month and increases in price depending on the number of devices, the support requirements (example: 24/7/365), and the complexity of your network.
This is a common starting price point in the industry and should not be surprising considering the fact that one skilled IT services engineer with a limited skill set would cost your business around $75,000 per year. At this salary, the individual would most likely lack skills in cybersecurity, network, or cloud technologies which would limit your technology capabilities.
Conclusion
In conclusion, partnering with a Managed Services Provider offers businesses a cost-effective solution to their IT support needs. By outsourcing IT functions to a third-party provider, businesses can access a team of skilled professionals, leverage the latest technologies, and enjoy predictable pricing without the overhead costs associated with maintaining an in-house IT team. So, if you’re looking to maximize value and streamline your IT operations, consider partnering with a Managed Services Provider today. Your bottom line will thank you for it!
Contact us today to get a free quote for managed services!