Originally published November 14, 2024. Revised and expanded February 3, 2025.
In today’s fast-paced digital landscape, businesses of all sizes depend on IT infrastructure to maintain operations, enhance productivity, and ensure security. But IT management gets complex and costly, especially for organizations that can’t cover all their needs with internal staff.
The answer is a managed IT service provider (MSP)—an outsourced partner who can cover your IT needs.
Yet not all MSPs are created equal. Some offer favorable pricing structures, while others will generate surprise bills for projects and support scenarios that fall outside their narrow coverage. These things are often described in the fine print, which makes it tough to know how much your managed services will actually cost.
So how do you get a great value in managed services?
How do you get pricing that works for you?
Here’s everything you need to know.
What are managed IT services?
Managed IT services are outsourced services that cover your IT needs. This approach gives you access to an entire team of IT professionals—often for the cost of one staff hire. This outsourced team handles everything from network management and cybersecurity to data backup and disaster recovery.
If you have no IT experts on staff, your MSP will provide fully managed services. If you have some staff resources, but you need to fill your gaps, your MSP should offer co-managed services.
Either way, working with an MSP is a smart way to tackle IT support. It places your IT infrastructure in expert hands while allowing you to focus on your core business.
How much will you save with managed services?
Use our FREE savings calculator to find out.
How are managed services priced?
Many factors contribute to the pricing of managed services. While different providers take different approaches, certain factors typically have a significant impact on MSP pricing.
- The client’s employee count
- The number of end user devices supported
- The client’s network complexity
- The number of locations supported
- The client’s regulatory compliance requirements
- EDI and data integration needs (if your MSP supports these technologies, as Corsica does)
- Fluctuating service needs (though you should never pay more when you need more help—see below)
Ultimately, the cost of managed services will depend largely on the provider’s pricing model. This is the most important thing to understand as you evaluate the cost of different providers.
Common (and uncommon) pricing models
MSP pricing models fall into two categories: predictable and unpredictable. While many providers claim to offer unlimited or all-inclusive pricing, the fine print usually tells a different story. Unless an MSP is explicitly committing to a fixed monthly fee with unlimited service consumption, then your pricing is going to vary.
First we’ll look at unpredictable pricing models. Then we’ll look at the alternative—which is what we offer here at Corsica Technologies.
Unpredictable pricing models
- Per user pricing. Some MSPs charge by user count. This makes it look like your cost is a simple calculation of users multiplied by unit cost. Unfortunately, the MSP’s contract usually stipulates exceptions for scenarios that will incur additional unexpected bills.
- Per device pricing. Like per user pricing, this model creates the impression that your price is a simple calculation. But you really need to look at the fine print. Many scenarios may not be covered in your calculated monthly price.
- Tiered service bundles. Of the unpredictable model, this one gets the closest to predictable. MSPs will bundle certain services together, usually with several different tiers that go up in cost and coverage. This model gives you a greater sense of what you’re getting, but you still have to read the fine print for exceptions and requirements that will create additional charges.
Predictable: Fixed fee, unlimited consumption
There’s an alternative here.
Rather than paying widely varying costs every month, you can get unlimited IT service consumption for one fixed fee. But you have to do your research—and ask your MSP hard questions.
Here at Corsica, we offer truly unlimited (or unmetered) services. Our team works with you to determine your needs. Then we give you a price that you can count on, month after month—even as your service consumption fluctuates.
This model gives you the support you need without wrecking your budget. Your accounting team is happy, and you can focus on your core responsibilities—without worrying about technology problems that exceed your bandwidth.
Learn more here: Unlimited IT Support.
Which model is right for you?
Different pricing models work better for different organizations. Broadly speaking, we find that companies fall into two categories.
1. Prefer higher financial risk + capex
Some companies prefer to run in a higher-risk scenario, spending less on IT services when they can, knowing that unexpected bills may come. They’re prepared to handle unexpected capital expenditures when they’re strategically justified. These companies often choose MSPs with less predictable pricing.
2. Prefer lower financial risk + opex
Other companies need consistency and predictability in their monthly spend. They have the cashflow to support operating expenses, but those expenses must be stable, and they don’t have large capital reserves. These companies can’t always handle significant capital expenditures—especially when they’re unexpected. These organizations typically do best with 100% predictable pricing from their MSPs.
MSP pricing calculator
How much will you spend under each model?
That’s a great question. We can’t answer it with 100% certainty, but we can help you estimate it. Our managed IT services pricing calculator does just that. It considers factors like:
- Number of Employees: The total number of employees in your organization who require IT support.
- SaaS Applications: The number of software-as-a-service (SaaS) applications that need support.
- Servers: The total number of servers that require management.
- Support Requests: The annual number of support requests for various IT services, including EDI/B2B integration, network support, cybersecurity, and desktop support.
- New Workstations: The number of new employee workstations added per year.
- Critical Cybersecurity Incidents: The number of critical cybersecurity incidents requiring containment, eradication, and recovery services.
- vCIO Consulting Hours: The number of virtual chief information officer (vCIO) consulting hours needed per month.
Put these details into the calculator, and it will estimate your monthly IT service costs under two models: Predictable pricing and unpredictable pricing.
Use our FREE calculator to see if you’re getting fair pricing.
2025 Managed IT Services Pricing Calculator →
Sample MSP pricing scenarios
How will pricing play out in different managed service scenarios?
It’s a great question. Here are a few situations to consider.
1. You experience a debilitating cyberattack.
Many managed service providers offer cybersecurity services. Few offer a cybersecurity service guarantee.
This is bad news for clients. Without that guarantee, your MSP will treat your cyberattack as a separate billable incident outside your normal monthly price. They’ll charge separately for their services to clean up the situation. Depending on how widespread the damage is, those services could get incredibly expensive.
The alternative?
A provider who offers a Cybersecurity Service Guarantee.
Here at Corsica Technologies, our MSP pricing includes remediation services for a cybersecurity incident, with limitations. Learn more here: Our Cybersecurity Service Guarantee.
2. You introduce a new business application, and 60% of your users need help getting it to work.
If your MSP uses an unpredictable pricing model, it’s doubtful they’ll consider these services “covered” under your monthly agreement. Instead, these services will require a separate engagement to get your organization up and running with the application.
If your MSP uses a truly predictable pricing model, this should be included under your end user support agreement.
3. Your support needs always increase during your busy season.
If your MSP uses an unpredictable pricing model, they will almost certainly bill more when you consume more service hours. Even if they claim to bill per user or per device, they’ll have terms in the contract that allow them to charge more when your service needs increase.
If your MSP uses a truly predictable pricing model, you’ll still pay that one predictable price—even as your users need more support than they do in your slower seasons.
The takeaway: Ask tough questions about pricing
If you need predictable pricing from your managed services provider, you’ll need to be selective. It’s rare to find an MSP who offers truly predictable monthly pricing with unlimited service consumption. That’s our model here at Corsica Technologies. Our comprehensive, flexible plans are tailored to your needs—and they’re easy on your accounting department. Contact us today to take your next step with a friendly pricing model for managed services.
Ready to calculate MSP pricing?
Use our FREE calculator to see the power of predictable pricing for managed IT services.
