How MSPs price managed IT
Before you compare quotes, find out which pricing model each one uses. Each model puts the risk on a different side of the table, and a low headline number can hide which side you're on.
Per user. You pay one monthly price for each person, and it covers that person's support, monitoring, patching, and security. It tracks headcount, the number you already budget around, and it prices what actually gets attacked, which is people's accounts and inboxes. It's the most common model for small-business managed IT, and it's the one we use for teams of 5 or more.
Per device. You pay for each computer, server, or phone under management. The headline number often looks lower until you count the second laptop, the desktop at home, and the phone. It also prices hardware instead of identity, which is backwards now that so many breaches start with a stolen login rather than a broken machine. We use per-device pricing for infrastructure that isn't tied to one person: servers ($200 a month), firewalls ($50), managed switches ($25), wireless access points ($20), and NAS storage ($100). Enrolling a laptop or phone in device management is a $15 per device monthly add-on.
Flat rate. One monthly number for the whole company, whatever its size. It's simple to budget, but the provider has to pad it to cover what it can't see, and it gets renegotiated every time you hire. We use a flat rate in one place, where the simplicity helps everyone: Tiny Team, $600 a month for 1 to 4 users.
Hourly, or break-fix. You pay only when something breaks. It's the cheapest option in a quiet year and the most expensive in a bad one, and in between nobody is patching, monitoring, or checking your backups. The provider also earns more when things go wrong, which is the wrong incentive. We bill hourly only for work outside a managed agreement: project work at $175 an hour, on-site visits for managed clients at $150, and remote or on-site help for non-managed clients at $180 or $220. For the full comparison, see break-fix vs. managed IT.
What we use, and why. A mix, on purpose: per user for people, per device for infrastructure and enrolled laptops and phones, flat for very small teams, and hourly for projects. Every rate is published, so you can check our math against the pricing page.