In recent years, many businesses prefer managed service providers for all their IT needs. Hiring a service provider is an extremely beneficial option for a number of reasons includes:

• Predictable and scalable spending.
• Avoid operational cost.
• Faster response time.
• Expertise and experience.
• Proactive monitoring and issue fixing.
• Cyber security and data compliance support.
• Cut time to market.
• Reduce risks.

If you are comparing various MSPs, and their services they offer then you might have faced a difficulty in selecting which pricing model is better for your business.

There are certain factors to be considering when you wanted to hire managed service provider for your business.

• First you need to know about the budget you have. Cost is one of the most factors when you decide which MSPs you need in your business.
  
  
• Understand your business needs.
  
  
• The last is to understand what are the financial and legal risks of not meeting all these needs.

When deciding what kind of service needs are required for your business, then consider the following before hiring service providers.

We also suggest you to  check one of the best cloud managed services provider

24/7 Help Desk:

Rather than setting up an in-house service provider, many companies outsource their help desk. Outsourcing can provide 24/7 service assistance that also certainly mean a lower cost to your business.                                       

Server Visualization:

Some companies are able to offer server visualization which is a process of dividing a physical server to multiple isolated servers to your business. Also it can help in minimizing the downtime of the server. The service providers also help in solving network loss, which your company and in-house employees would never notice so quickly.

Data Backup/Recovery:

There is hardly a network loss when a service providers work for you. But what if your data is lost?

A quality managed service providers provides an option of external hard devices and also many companies have turned to the cloud, so that the information is safe and fulfil backup needs.

On Site Support:

Service providers provides on-site visit to investigate all the devices and check whether the work runs smoothly.

Managing Software and Hardware:

If you are leveraging 3^rd party managed service provider, then they offer various software and hardware services. With that they provide you with best tools, security and financial strategy.

Let’s directly dive into pricing model:

When you choose pricing model, you need to consider certain factors which are necessary for your business

• Costs: You must have an idea of total cost required to deliver a service and also need to know additional costs that may arise.
• Scalability: To keep your pricing model effective and for your business to grow then the standardization is important and the core offering is the key to scalability.
• Targeted market segment: You target client base will influence the pricing strategy you adopt. It all depends upon type of business and target market segment.
• Technology: Technology definitely affects your pricing model and services you adopt for your business.
• Competition: Before you choose pricing model, you need to ensure that the services and pricing model are competitive with those of your competitors.

Pricing model for managed service provider:

Per Device: The pricing model is simplest as compared to other pricing model in which the service provider charge their client according to how much devices do you have and are covered under the contract. For example the pricing model must be according to $X for laptop $X for server $X for data collection and so on. Also if customer wants to add more devices, then the service provider will raise the monthly fee accordingly.

Per User: This pricing model is quite similar to per device pricing model, but the only difference here in this pricing model is the flat fee is charged based on per user, per month. This pricing model covers all the IT needs and the devices they use. There are many companies who prefer this pricing model which benefits the companies with significant number of devices even though they end up paying more for many devices.

Value based: This is the most comprehensive model, as service provider provides all IT services for all the components of your all client’s business. This pricing model is aimed towards taking care of all risks or of all immediate pain points.

Monitoring services: As the name suggest, the service providers offer only monitoring and alerting services for all the services and client’s IT infrastructure. Customer with minimum budget usually prefers this model and it provides a bare-minimum approach.

Tiered: Many managed service providers usually rely on tiered pricing in which it includes different level of services they provide for your business. The lowest tier includes offers basic support, patching and updating, the next tier include on-site include, and the last & highest tier might include 24/7 support.

A-La Carte service: This model is quite cost effective than other models in which it allows customers to pick and choose the service they want and need for their business.

All You Eat pricing model: In this pricing model the charges are one predictable monthly fee which covers all services that the service provider offers.

Let’s wrap up,

You can choose the pricing model depending on your business needs, goals and which pricing model is better than other. Understand the MSP pricing depend on services you need. Service provider gives you the peace of knowing you have an option to decide about pricing models and also they have ability to prevent issues effectively before they happen. You need to choose the services depending upon the services you need and depending upon the services covered in that particular pricing model.

If you are wondering which service model is right for you, then our experts are ready to answers all your question related to pricing model and are ready to help decide which one is better for your business.