Sometimes Managed Service Providers (MSPs) get a bad rap for being a burden on budgets. If you’ve ever checked the industry’s prices, chances are you’ve experienced sticker shock. However, if you take the time to understand what goes into our (and our competitors’) managed service package, it can help you make sense of why the pricing is structured the way it is.
All MSPs aren’t equal. In this article, we explain how great MSPs will bring your company more value in the long run. Let’s jump in!
Cost of IT Support – an essential factor when choosing an MSP
As a business owner, you have to be mindful of costs and budget constraints. It’s natural to prioritise the upfront price when considering IT-managed services. However, it’s crucial to look beyond the price tag and understand the long-term benefits and cost savings that come with a comprehensive IT solution.
Cheaper isn’t always better. When looking for a service provider, it’s essential to evaluate the services offered. Even if you’re paying more upfront, it can lead to greater savings and success in the long run. Why? Because additional services can increase productivity, enhance security, and streamline operations.
Common Law of Business Balance, John Ruskin
It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.
How can MSPs offer a lower price?
When considering a service bid from an IT provider that appears to be low, it’s important to be aware of the potential drawbacks. There are only a few ways for providers to reduce costs, and unfortunately, these can have negative consequences:
- Underpaying employees: This may initially seem like a cost-saving measure, but it can lead to high employee turnover. As a result, the technical staff may be less experienced and knowledgeable about your network and business. This could result in poor advice and service for you.
- Cutting staff: Another cost-cutting approach is reducing the number of employees. While it may save money, it can lead to slower response times, unresolved issues, and downtime for your network.
Additionally, with fewer staff members, the IT provider may struggle to allocate enough time for proper documentation and management of your IT needs. As a result, you may find yourself explaining your problems repeatedly because the provider has too many clients and not enough staff to give you the attention you deserve.
- Lower margins: Some providers may offer lower prices by reducing their profit margins. However, this can hinder their own growth and limit their ability to invest in innovation. It’s important to consider that an IT company’s success and ability to manage your IT infrastructure depend on its own growth and continuous improvement.
- Using outdated hardware: To save costs, certain providers might continue using hardware beyond its intended lifecycle. This approach can lead to frequent crashes and issues that could have easily been avoided if up-to-date equipment had been utilised.
The differences between budget friendly and premium MSPs
When you look at the cheapest MSPs, most of them offer pure monitoring services.
In this scenario, the managed IT team functions like a security guard for your server. They closely monitor its performance, and if any issues arise, they will immediately notify you. From there, you have two options: you can either handle the problem yourself or opt to pay extra fees to bring in an external expert to resolve the issue.
While this can be enough for some businesses, this type of service won’t be particularly useful for larger companies or businesses that must move quickly. In fact, it may not be cost-effective in the long run, as you will have to pay additional fees to get the help of experts whenever problems occur. This can become quite frustrating, especially if you experience frequent breakdowns due to outdated or over-capacity infrastructure.
Select an MSP that provides a Service Level Agreement (SLA), which describes the expectations between the MSP and the customer, and what products or services will be delivered to you.
Mid to high-range services
Thankfully, those who see IT as the central hub for their business have other solutions available. In the mid-to-high range of the managed IT services cost spectrum, you’ll find companies that not only keep an eye on your IT concerns but also proactively tackle issues and even prevent them from happening in the first place.
For instance, Ingenious will conduct daily cybersecurity tests to identify any vulnerabilities in your security infrastructure. If we discover any weaknesses, we’ll promptly implement hardware or software upgrades to address those gaps.
We also offer round-the-clock IT support, as well as IT planning, strategy, and other valuable services, depending on our clients’ specific needs. We’ll cover backup and disaster recovery procedures and provide a combination of on-site and remote support, all bundled together for a single flat fee. At the basis of our work is the idea that IT is not a one-size-fits-all solution. That’s why we work hard to find the perfect strategy for each of our clients.
We understand that navigating the IT world and its pricing can be challenging, especially if you’re not well acquainted with tech terms. A good way to explain the differences is to look at hotels. As you probably know, hotels are rated on a scale of 1 to 5 stars to indicate their quality. MSPs can be categorised in a similar manner, although without official recognition.
Budget-friendly MSPs tend to offer a performance equivalent to a 2 or 3-star rating. While they do address issues and provide assistance when required, their approach primarily revolves around planning ahead for 6 to 12 months. Essentially, they operate in the background and only take action upon specific requests.
On the other hand, larger companies and complex businesses require 5-star service – MSPs that can plan and act swiftly. This is precisely where our services come into play, as we perfectly align with the requirements of such companies.
We don’t simply observe from the side-lines, ensuring everything runs smoothly. Instead, we will become your tech business partner that will help your company reach its objectives and goals while taking a significant workload off your staff.
A good MSP – an investment in your business’ success
Sure, a smaller price tag can be tempting. But you may also find yourself facing additional charges for repeated fixes as the provider’s overworked staff tried to provide mediocre service at the lowest possible costs. At Ingenious, we take a different approach. No fine print, no quibbles, no strings. Our focus is on understanding your business and providing you with reliable, innovative, and stress-free IT solutions.
If there is one advice we could give any business, it is to prioritise value over price. Maintaining technology is not a one-and-done thing. Paying more in the short-term results in long-term savings. Learn more about managed IT pricing.
Did you know that nearly 3 out of 4 large firms use MSPs? If you’re serious about your company’s growth, you should consider doing it too. Reach out to our friendly team here to discuss how an MSP could benefit your business, and don’t forget to check our Insight blog for more useful content.