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4 Reasons Managed Service Providers Are So Expensive

managed IT Services

 

As you research managed service providers, you may wonder why they are so expensive. You may even notice some are more expensive than others, some are cheaper, and some are right in the middle. 

 

Like any business, the cost of a managed service provider depends on many unique internal factors of the company. 

 

MSP’s have many costs to cover to ensure they give you a premium experience as a client. This includes the price of equipment, number of employees, level of expertise of the IT team, and the services and support they offer. 

 

Regardless of the cost, the most crucial part of choosing your MSP is that they can deliver you the service and quality that your business requires for your IT environment. 

 

Some companies may not feel their IT is essential to their company. In this case, they may require fewer services. On the other hand, other companies may rely on IT to enhance their business's efficiency. In this case, it would be worth paying more for an MSP that can provide the level of services that are required. 

 

As a managed service provider, Usherwood feels that it is essential for our clients to understand why our services cost the amount they do. We find value in providing the highest quality resources for our clients, which reflects the price we charge for our services and support. 

 

Here are 4 internal factors that determine the cost structure for MSP support.  This will help you to better understand that the cost of managed service providers' support is greatly determined by the resources and quality of resources that they provide their clients.

 

1. You Recieve a Team of IT Experts

When you hire an MSP, you will receive an entire IT staff to support your business. Depending on the company's size and how many skilled IT staff they employ, this could change the cost of their services. 

 

Some MSPs require more experienced IT personnel than others. Depending on the skill level they want to have supporting clients and the amount of IT staff, hiring can be more or less expensive for MSPs.  Here are the most common IT personnel that many MSPs find essential to provide their clients with valuable support. 

 

IT Engineers

When you hire an MSP, you will be assigned a team of IT engineers that will work with your business to build out your IT environment. This team will continue working with you on anything that comes up throughout the partnership. 

 

Designating a specific team of IT engineers to your business allows them to become familiar with your environment so that they can create a personalized long-term support strategy for your business to ensure success.

 

A vCIO

A vCIO is not offered with every MSP. Partnering with an MSP who offers your business a vCIO is excellent for companies that do not have a CIO that oversees all of your IT environment. The vCIO will be in charge of information technology strategy and implementation and oversee the hardware, software, and data that helps other members of the C-suite do their jobs. 

 

They will research new technologies and determine what technology can provide your business value. They will also address any current risks associated with your IT and help develop solutions to mitigate this risk.

A vCIO can be seen as a middleman between you and your IT engineers to successfully communicate any issues or new long-term goals that your business has. 

 

Here are some of the ways a vCIO can play a valuable role for your business: 

  • Advocate for your service experience
  • Assist with IT costs and budgeting.
  • Maintain and enhance cybersecurity
  • Define clear IT objectives and strategies for your business

 

Help Desk Support

The help desk is an entire staff of trained employees that will answer any immediate issues your business may be having. They ensure that you get the help you need from the correct department. The help desk is also commonly known as the First Response team because they are the first people you contact if you are looking for service help in all things IT. 

 

The help desk is available to all of your employees to ensure they have a person on-call to remediate problems quickly so that productivity isn't disrupted.

 

Network Operations Center (NOC)

The Network Operations Center is a team of people who monitor, manage and control a company's network. They prevent security threats by seeking out suspicious network activities and resolving issues. Their goal is to minimize the risks of network attacks, network failures, or black holes. 

 

Security Operations Center (SOC)

The Security Operations Center is a team that monitors an organization's security foundation. They will ensure that there are no security issues, and if there are, they will respond with a solution. This is accomplished with constant supervision of a company’s websites, networks, servers, and databases.  

 

Project Team

The project team is designated to work on any projects during your partnership. They will help your business form a strategy based on your timeline and work with you to implement any additional projects that come up successfully. 

 

Having a team designated to projects ensures that a project is accomplished within a certain period and budget. It consists of a project being initiated, establishing and executing a plan, and achieving IT goals. 


2. Training to Keep your MSP Current on Technology Trends

It is essential that your MSP is providing their engineers and IT staff with training. For your MSP to inform your business on the latest threats, technology, and IT strategies, they must have continuous training. IT is constantly evolving, and it is essential to stay equipped with the most current knowledge. 

 

Training is an essential investment for an MSP because it ensures your business will have a knowledgeable team of IT experts that can inform your business on the latest techniques to optimize your business's security and work environment.

 

3. Advanced IT Equipment

Every managed service provider will provide your business with different equipment. When it comes to equipment, each MSP has a unique set of vendors that they provide. The equipment includes physical devices, software, and applications that they feel will provide their clients with the most significant value. 

 

Equipment can be a significant differentiator for many MSPs, especially cost. Your business must have the proper tools to stay secure and productive. Before you partner with an MSP, it can be beneficial to ask them what equipment is in their IT stack, how it was chosen, why it was chosen, and how it can enhance your IT environment.

 

4. Ongoing Services and Support

MSP’s can differ in price depending on the services and support that they offer. The more services they provide your business, it is likely that they will be more expensive. It is also essential to take into account the degree of services you require. 

 

If you do not require anything more than the minimal amount of services from your MSP, then it would not be necessary to pay extra for something you don't need. On the other hand, if you are a business that relies heavily on IT, it may be worth spending more and receiving more support to ensure your IT is fully optimized for success. Some examples of services and support that an MSP provides are:

  • Network Monitoring
  • Proactive IT Support 
  • Cloud Storage & Backup
  • Antivirus & Network Security
  • IT Strategy & Implementation Planning 

 

Should you Outsource IT or Keep it In-House?

Are you wondering if hiring an MSP is worth the cost for your business? Well, that depends. There are a lot of factors that can help you determine if outsourcing your IT is a better financial choice than keeping your IT in-house. 

 

As a managed service provider, Usherwood speaks with many companies wondering the same thing. Some companies can get more value for their dollar by keeping their IT in-house. Others can save money by outsourcing completely or even having a hybrid (both in-house IT and outsourced IT). 


The thing is, every company is different and requires a different IT model. To help you determine whether your business would benefit more from in-house IT or outsourcing IT to a managed service provider, check out this article: In-House IT vs. Managed IT Services; Which is Suitable For You?