Factors that Determine the Costs of Managed IT Services

Managed IT services and support costs can vary substantially depending on your particular business’s requirements. For businesses in the Bay Area, costs for hiring internal IT staff are very high, so it makes sense for SMBs to use a managed IT services provider. Total costs will depend on your needs and the capabilities of the provider. Generally speaking, the cost depends on the IT infrastructure you want managed, the services you need, and how the provider calculates costs.

It’s a good idea to look around and compare various IT service providers to see if their services are a good match for your business needs. A good Bay Area IT services provider like GSDSolutions will have an experienced team that uses industry-standard support tools and can provide a service package specific to your business needs. They can take care of your technology requirements and deliver the specialized services you need at a reasonable cost. The cost of partnering with a Managed IT services provider will usually be much less than the cost of hiring your own internal IT staff.

The Number of Users Drives Total Managed Services Costs

To determine the total costs of a service package, most providers use the number of users as a key metric. More users mean more devices and more service requirements. The more users, the more support calls will be generated. Each user must be kept up to date, and their data must be kept secure. Their passwords have to be managed, and their email monitored for threats. Turnover, and the associated effort with onboarding and offboarding employees, will also tend to be higher when there are more employees on your staff.

An experienced managed IT services provider with an extensive track record can rely on past experience to determine realistic per-user costs. They can then add other factors relevant to your specific needs to come up with a fair price. A fair price quote based on realistic cost estimates helps to avoid wild swings in the future. This, in turn, can build the foundation for a long and mutually beneficial partnership.

A Variety of Factors Can Influence the Cost of Managed IT Services

In addition to the number of users, other factors can determine the total cost of managed IT services. There are costs related to work needed to support your IT infrastructure and business processes and are related to provider costs. These factors include the following:

  • Number of Servers – A complex network architecture with specialized or redundant servers will require more provider resources to service and support.
  • Number of Computers and Laptops – Many providers tack on additional costs for this, but some, such as GSDSolutions, only rely on the number of users.
  • Number of Business Locations –Servicing several different locations will add to your costs.
  • Level of Security – Costs will typically be higher if you have advanced security requirements due to additional measures needed to manage extremely sensitive data.
  • Compliance Costs –Medical, financial, and environmental records may be subject to stringent documentation requirements. Compliance with such special regulations can add to the cost.

A competent managed IT services provider will often calculate a base price for your service package and then analyze the cost impact of any additional special requirements. If you plan to expand your business, make sure the costs for these additional users or servers are also specified in the proposal. While the number of servers is clear cut, other cost factors may require additional study to assess.

Some industry-specific security requirements can also add to your costs. For example, your business may need a security operations center for continuous data security monitoring. Such conditions are often necessary to comply with privacy legislation. Other security compliance requirements may be required based on your business’s particular industry.

Use an Experienced IT Service Provider that Works with Similar Businesses in Your Area

The determination of costs for managed IT services is not always easy. Therefore, it makes sense to go with a provider with a good track record that works with other similar businesses in your area. Providers should have the required expertise to work with you and follow a well-defined process to determine service package costs. GSDSolutions provides Bay Area IT services to small and mid-sized businesses in various industries. Contact GSDSolutions to schedule a free consultation to discuss the level of services and support that is the right fit for your business.


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