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Ready to invest in managed IT services? Then you probably want to know how it works.
The basics idea you need to understand is that nearly every managed service offering will be based on a monthly subscription plan. The cost will depend on what’s included in the plan. What’s included in the plan is (or, at least, should be) based on what you need.
Since each managed IT services company is unique, it’s important that you make sure you’re paying for managed services that deliver what you need.
There are a few myths out there about what managed IT services mean to businesses that invest in them. Let’s set the record straight:
You Don’t Have To Fire Your Internal IT Team
Instead, you can augment your internal team with additional support from an external IT company. After all, managing IT can be a daily struggle. Your IT manager or internal IT staff will tend to spend most of their time just “putting out fires” one after another. As important as that is, the constant stream of requests, troubleshooting, and maintenance tasks can keep your IT personnel from tackling the larger goals you have for your business technology, including:
You Won’t Lose Control Over Your IT
This is entirely up to you. While some businesses would prefer to offload IT and never think about it again, others still want or need to maintain agency in the IT sector of their organization.
Both are fine, and both are possible. It’s just a matter of finding the right managed IT services company and making sure you’re on the same page as you about how the management of your IT will work.
You Won’t Necessarily Have To Pay More Than You Did For Internal IT.
Based on data from PayScale.com, we know that an IT technician will cost you somewhere between $45,000 – $71,000 per year. The range is dependent on how experienced the technician is, what types of certifications they have, etc.
An average small business should expect to pay somewhere from $100 – $115 per device per month for a managed IT services contract. Again, that cost can vary – but it can still come in much lower than the $65,000 per year you would spend on a single employee.
Yes, managed services fall under contracted IT services. The Master Services Agreement (MSA) and a Service Level Agreement (SLA), spells out in great detail, the definitive contract durations and managed services terms. These two documents define the relationship between the business requirements of the customer and the services that get delivered by the provider.
The Master Services Agreement provides the complete scope of services the stated business is contracting from the service provider. The document spells out the service methods and processes, data privacy requirements, and financial penalties for failing to meet the terms of the service contract.
The Service Level Agreement covers any performance guarantees the service provider is making related to the contracted services. These performance guarantees may include infrastructure uptime and availability, service incident response time, and data recovery time objectives. Typically, companies will set allowable thresholds for the performance guarantees and require the service provider to pay financial penalties if limits get breached.
The contracted subscription terms can vary. The provider may bill using either a flat-monthly or pay-per-use billing model – depending on the nature of the service. The subscription price typically is determined by one or more of the following variables:
Your ROI will be based on the following: