MSP Contract Renewal Strategies

Last updated: April 2026

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Quick Answer

Businesses using managed IT services can reduce IT costs by up to 40% while boosting efficiency and security.
Common MSP pricing models include per-user, per-device, and tiered bundles for managed services.
MSPs must consider customer profiles and demand patterns before deciding which pricing systems to use.
In 2023, 63% of respondents to the Kaseya MSP Benchmark Survey identified as general-purpose MSPs.

Managed service providers (MSPs) play a critical role in helping businesses navigate the complexities of modern IT. They offer outsourced support services, enabling clients to accelerate digitalization efforts, streamline operations, and strengthen cybersecurity. The most lucrative client base for MSPs includes small and midsize businesses (SMBs) who increasingly turn to these providers for essential IT functions. The 2023 Kaseya MSP Benchmark Survey, which gathered insights from 1,091 respondents, highlighted the diverse landscape of MSPs, with 83% of participants coming from the Americas, 11% from Europe, the Middle East, and Africa (EMEA), and 6% from the Asia Pacific (APAC) region. Understanding how MSPs price their services and structure their contracts is key to both provider profitability and client satisfaction.

What is a Managed Service Provider (MSP)?

A Managed Service Provider (MSP) offers outsourced support services for a business's IT infrastructure and end-user systems. These services can range from network management and data center operations to cybersecurity and cloud services. The core value of an MSP lies in its ability to proactively manage IT environments, ensuring systems run smoothly and securely, often before issues arise. This approach contrasts sharply with the older "break/fix" model, where IT support only responds after a problem has occurred, leading to downtime and unpredictable costs. Instead, MSPs aim to create long-term relationships with their clients, fostering mutual understanding and consistent service delivery.

MSPs help businesses strategically grow by taking on the burden of IT management. They enable clients to focus on their core competencies while benefiting from expert IT oversight. This partnership is especially beneficial for small and midsize businesses (SMBs), which often lack the internal resources or specialized staff to manage complex IT environments effectively. These SMBs represent the most lucrative client base for MSPs, as they seek to accelerate their digitalization efforts, streamline their operations, and strengthen their cybersecurity defenses. By leveraging an MSP, businesses can access cutting-edge technologies and best practices without the significant upfront investment required to build an in-house IT department of similar caliber.

The role of MSPs is evolving rapidly with the advent of new technologies. As new and revolutionary technologies replace old systems and tools, fresh opportunities emerge for MSPs worldwide. Providers who embrace these technologies quickly can stay ahead of the curve and gain a competitive advantage. This includes adopting tools for IT Process Automation and building fully integrated IT ecosystems. These advancements help MSPs to not only manage current client needs but also to anticipate future demands, ensuring their services remain relevant and effective in a dynamic technological landscape. The shift towards proactive, strategic IT management makes MSPs indispensable partners for businesses looking to thrive in the digital age.

The Evolving Landscape of MSP Services

The types of services MSPs offer have diversified significantly. In 2023, the Kaseya MSP Benchmark Survey revealed that 63% of respondents identified themselves as general-purpose MSPs, providing a broad range of IT services. This indicates a strong demand for comprehensive support that covers multiple aspects of a business's technology needs. However, specialization is also growing. Managed security service providers (MSSPs) saw an increase, making up 18% of the respondent base in 2023, up from 17% in 2022. This rise underscores the increasing importance of cybersecurity in the current threat landscape, with businesses seeking dedicated expertise to protect their digital assets.

Alongside security, network and data center-focused MSPs also grew, representing 19% of respondents in 2023, a notable increase from 12% in 2022. These providers primarily oversee servers, storage devices, and other network components crucial for keeping businesses operational. This specialization allows MSPs to offer deep expertise in specific, critical areas of IT infrastructure. The growth in both general-purpose and specialized MSPs shows a dynamic market where providers adapt to meet varied client needs. Whether a business requires broad IT management or targeted support in areas like security or network infrastructure, there is an MSP model designed to fit.

Strategic Growth Through MSP Partnerships

Partnering with an MSP is not just about fixing IT problems; it is a strategic decision that can lead to significant business advantages. MSPs offer a variety of outsourced support services, but the right MSP can also help strategically grow your business. By outsourcing IT, companies can benefit from reduced operational costs, improved efficiency, and enhanced security postures. This allows internal teams to focus on core business objectives rather than getting bogged down by IT management tasks. The expertise brought by an MSP can introduce advanced tools and practices that an individual business might not otherwise access, such as sophisticated monitoring systems, automation capabilities, and robust cybersecurity frameworks.

The value proposition of an MSP extends beyond technical support to include strategic guidance. MSPs often stay abreast of the latest technological trends and regulatory requirements, providing clients with insights that can inform their long-term business strategies. For example, an MSP can guide a business through cloud migration, implement data compliance solutions, or optimize network performance to support new business applications. This strategic partnership helps businesses not only adapt to technological changes but also leverage them for competitive advantage. The ability to tap into specialized IT knowledge and resources without the overhead of an in-house department makes MSPs a powerful ally for businesses aiming for sustainable growth and innovation.

How Do MSPs Get Paid?

MSPs typically get paid through various pricing models, which are crucial for their profitability and revenue. The choice of a pricing model requires careful consideration, as it impacts client relationships, internal efficiency, and overall financial health. MSPs must consider the customer profile and demand patterns before deciding which pricing systems to use. A strong pricing model should be suited to your business's current needs and should also be capable of scaling and adapting to future demands. This flexibility ensures that as client needs evolve or as the MSP expands its service offerings, the billing structure remains fair and manageable for both parties.

The most common pricing models vary with industry focus and the region the MSP serves. However, some popular options include a combination of per-user and per-device billing, and tiered bundles for managed services. These models offer different ways to structure costs, providing flexibility for clients while ensuring predictable revenue for the MSP. For example, a per-user model might be ideal for businesses with many employees who use multiple devices, while a per-device model might suit organizations with a fixed number of critical hardware assets. The goal is always to create a transparent and understandable billing system that aligns with the value being delivered.

The 2023 Kaseya MSP Benchmark Survey provides valuable insights into the global MSP landscape. The survey gathered responses from 1,091 MSPs worldwide. The largest segment of respondents, 83%, came from the Americas. Another 11% were from Europe, the Middle East, and Africa (EMEA), and the remaining 6% were from the Asia Pacific (APAC) region. This broad geographic representation highlights the global relevance of MSP services and the diverse market conditions that influence pricing strategies. Understanding these regional differences can help MSPs tailor their models to local market demands and competitive pressures.

The Importance of a Strong Pricing Model

Pricing is not just about setting a number; it is a strategic decision that reflects the value an MSP provides. A well-designed pricing model communicates that value clearly to clients. It also ensures the MSP can cover its operational costs, invest in new technologies, and remain profitable. When MSPs define and adjust their prices, there is a trap to go down the rabbit hole of following the competition, as customers shopping for rates most likely will do a comparison. However, this is a risky approach, as MSPs have different cost structures, different services, and different value they provide. Instead, MSPs should focus on their unique value proposition and target profit margins.

A strong pricing model supports long-term client relationships by minimizing payment disputes and misunderstandings. When clients easily understand how their bill is calculated and what services are included, trust is built. This transparency is particularly important as MSPs move away from the traditional break/fix model towards a managed services approach, which emphasizes proactive support and ongoing value. For example, if a client understands that a flat monthly fee covers all their essential IT needs, they are more likely to see the MSP as a partner rather than just a vendor. This mutual understanding is key to running a successful business, and the same applies to MSPs.

Factors Influencing MSP Pricing

Several factors influence how MSPs set their prices. These include the scope of services offered, the complexity of the client's IT environment, the number of users or devices, and the level of support required. For instance, a client needing 24/7 monitoring and rapid response for critical systems will typically pay more than one requiring basic remote support during business hours. The industry vertical a client operates in can also play a role, as certain sectors like healthcare or finance have stringent compliance requirements that add layers of complexity to IT management. For more details, see MSP Pricing Guide.

Technology stack and automation capabilities also affect pricing. MSPs who invest in IT Process Automation and integrated IT ecosystems can reduce their operational costs and increase efficiency. These savings can sometimes be passed on to clients, or they can enable the MSP to offer more comprehensive services at a competitive price point. By automating tasks like patching, standard tickets, and simple incident response and remediation, MSPs can address labor shortages, provide more responsive customer service, and unlock new revenue channels. This technological advancement allows MSPs to deliver higher value, which can be reflected in their pricing structures.

What Are the Most Common MSP Pricing Models?

MSPs typically offer managed IT services through one of three primary pricing models: per-user, per-device, or tiered bundles. Understanding how each one works helps businesses compare providers and find the right fit for their specific needs. These models are designed to provide predictability for both the client and the MSP, moving away from the unpredictable costs associated with traditional break/fix IT support. The choice of model often depends on the client's organizational structure, the types of IT assets they manage, and their overall budget for IT services.

In 2023, the Kaseya MSP Benchmark Survey showed that 63% of respondents identified themselves as general-purpose MSPs. These providers often utilize a flexible combination of pricing models to cater to a broad range of clients. Managed security service providers (MSSPs) increased to 18% of the respondent base in 2023, up from 17% in 2022. MSSPs might lean towards tiered models that bundle different levels of security services. Network and data center focused MSPs, which grew to 19% of respondents in 2023 from 12% in 2022, might find per-device pricing suitable for managing a fixed number of critical servers and network components. The flexibility to choose or combine models allows MSPs to optimize their revenue while meeting diverse client requirements.

The most popular pricing models are often a combination of per-user and per-device, or comprehensive tiered bundles. Each model has its advantages and disadvantages, and the best choice depends on the specific context of the MSP and its clients. For instance, per-user pricing can be very straightforward for organizations with a consistent number of employees, while per-device can be better for those with a high ratio of devices to users, such as manufacturing plants with many specialized machines. Tiered bundles offer a way to package services, making it easy for clients to select a plan that matches their desired level of support and budget.

Per-User Pricing

Per-user pricing is a model where clients pay a flat fee per employee each month. This fee typically covers all of their devices, including desktops, laptops, mobile phones, and sometimes even home office setups. The appeal of per-user pricing lies in its simplicity and predictability for organizations with a stable headcount. As your team grows, your costs grow proportionally, making it easy to budget for IT expenses. This model is particularly well-suited for businesses where employees commonly use multiple devices, as the cost remains constant per person, regardless of how many gadgets they utilize.

For MSPs, per-user pricing offers predictable revenue and simplifies billing. They can easily forecast their income based on the number of managed users. For clients, it means they don't have to worry about fluctuating costs based on individual device usage or support incidents. This model works well for smaller organizations or those with predictable headcounts. It aligns with the modern work environment where employees often switch between devices and locations, making device-specific tracking less practical. The focus shifts from managing hardware to supporting the individual's productivity across all their technology.

Per-Device Pricing

Per-device pricing is a billing structure where clients are charged based on the number of managed devices. This could include desktops, laptops, servers, printers, or mobile phones. Each device type typically has a set monthly fee that covers specific services, including monitoring, patching, and antivirus protection. For example, an MSP might charge $100 per workstation and $250 per server each month. That fee stays consistent regardless of how much support each device actually requires. In this model, billing is tied to inventory rather than usage. The appeal lies in its simplicity, as clients can easily understand how their bill is calculated.

This model has served MSPs well for years, offering simplicity and predictable revenue. Adding a new device means the invoice goes up, and removing one means the cost drops. This straightforward approach can be beneficial for organizations with a clear inventory of devices and less variability in user numbers. However, it can become complex in environments with a high turnover of devices or where users frequently add or remove personal devices from the network. Despite its traditional appeal, the needs of today’s clients are changing, pushing providers to reevaluate this model in complex, multi-device environments.

Tiered Bundles for Managed Services

Tiered bundles represent another popular pricing model, where MSPs offer different service packages at varying price points. These bundles typically include a defined set of services, such as basic monitoring, advanced cybersecurity, or premium support with faster response times. Clients can choose the tier that best matches their needs and budget, providing flexibility and choice. This model is often seen as a comprehensive solution, allowing businesses to scale their IT support up or down as their requirements change. It also allows MSPs to cater to a wider range of clients, from those needing minimal support to those requiring extensive, high-priority services.

For MSPs, tiered bundles can help segment their customer base and streamline service delivery. By defining clear service level agreements (SLAs) for each tier, MSPs can manage client expectations and allocate resources more efficiently. These bundles might include a combination of per-user and per-device elements, allowing for a hybrid approach that leverages the benefits of both. For example, a "basic" tier might cover per-device monitoring, while a "premium" tier could add per-user helpdesk support and advanced cybersecurity features. This model supports the increasing demand for tailored IT solutions and allows MSPs to effectively package their diverse offerings.

Is Per-Device Pricing Still Relevant Today?

Per-device pricing, a traditional billing structure where clients are charged based on the number of managed devices, has long been a staple for MSPs. It offers simplicity and predictable revenue, making it easy for clients to understand how their bill is calculated. For MSPs, it often means predictable revenue and fewer payment disputes. For example, an MSP might charge $100 per workstation and $250 per server each month, with that fee staying consistent regardless of how much support each device actually requires. In this model, billing is tied to inventory rather than usage, meaning adding a new device increases the invoice, and removing one decreases the cost. This straightforward approach has made it appealing for many years.

However, the relevance of per-device pricing is being reevaluated in today's rapidly changing market. The needs of clients are evolving, driven by trends like hybrid work, multi-device use, and outcome-based expectations. What once felt straightforward may now seem outdated in complex environments. With employees often using personal devices for work (BYOD) and switching between laptops, tablets, and smartphones, simply counting physical devices can become an inaccurate and inflexible way to bill for services. MSPs are increasingly finding that this model may not fully capture the value they provide, especially when services extend beyond just managing hardware to include user support, cybersecurity, and cloud management across various platforms.

The shift towards more adaptive billing approaches is becoming necessary. While per-device pricing works well for smaller organizations or those with predictable headcounts and a fixed inventory of traditional IT assets, it can struggle to accommodate modern IT landscapes. When clients are looking for comprehensive support that covers their entire digital footprint, including cloud services, software applications, and remote access, a model tied solely to physical devices might fall short. MSP-specific billing software is now supporting a shift toward more adaptive billing approaches, allowing providers to combine elements of different models or focus on value-based pricing. This helps MSPs align their billing with the actual services consumed and the outcomes delivered, rather than just the number of devices. For more details, see Per-Device Pricing Analysis.

When Per-Device Pricing Works

Per-device pricing still holds value in specific scenarios. It works particularly well for organizations with a stable and easily quantifiable inventory of traditional IT hardware. This includes businesses where most employees use a single workstation or where the primary IT management focus is on a fixed number of servers, network switches, and other infrastructure components. Industries such as manufacturing, where there might be many specialized machines or a clear count of fixed terminals, can also benefit from the clarity of this model. For MSPs just starting out, per-device pricing can be an easy way to establish initial service contracts due to its inherent simplicity. It provides a clear metric for both the provider and the client, making it simple to calculate costs and understand the scope of services.

For MSPs, per-device pricing offers predictable revenue streams, as long as the client's device count remains relatively stable. This predictability aids in financial planning and resource allocation. It also simplifies the onboarding process for new clients, as an inventory audit can quickly establish the billing base. When the services provided are directly tied to the maintenance, monitoring, and security of individual hardware units, this model makes logical sense. It ensures that each piece of managed equipment contributes to the overall service cost, reflecting the effort and resources required to keep it operational.

Challenges with Per-Device Pricing

Despite its simplicity, per-device pricing faces increasing challenges in the modern IT landscape. The rise of hybrid work models, where employees split their time between the office and remote locations, makes device counting less straightforward. Employees often use multiple devices—laptops, tablets, and smartphones—to access corporate resources, blurring the lines of what constitutes a "managed device." This multi-device environment can lead to complexities in billing, as clients may question why they are paying for multiple devices used by a single user. The traditional per-device model struggles to account for the actual user experience and the comprehensive support needed across these varied endpoints.

Furthermore, the shift towards cloud-based services and Software-as-a-Service (SaaS) applications introduces services that aren't tied to a specific physical device. An MSP might be managing cloud infrastructure, user identities, or application performance, none of which directly correlate to a physical device count. In such cases, per-device pricing can feel arbitrary or incomplete, failing to capture the full scope of value provided by the MSP. This can lead to clients perceiving the pricing as less fair or transparent, especially when the bulk of the MSP's work involves non-device-specific tasks. As businesses increasingly adopt these modern technologies, what once felt straightforward may now seem outdated in complex environments, pushing providers to explore more flexible and comprehensive billing approaches.

How Can MSPs Boost Profitability and Customer Loyalty?

MSPs can boost profitability and customer loyalty by embracing new technologies, streamlining operations, and delivering exceptional customer service. With new and revolutionary technologies replacing old systems and tools, fresh opportunities will emerge for MSPs worldwide. MSPs who embrace these technologies quickly can stay ahead of the curve and gain a competitive advantage. This proactive approach not only enhances service delivery but also positions the MSP as an innovative and reliable partner, fostering stronger client relationships.

One key strategy is to leverage technologies like IT Process Automation and a fully integrated IT ecosystem. By automating tasks such as patching, standard tickets, and simple incident response and remediation, MSPs can significantly reduce costs and increase efficiency. This automation addresses labor shortages, a common challenge in the IT industry, by allowing existing staff to focus on more complex, high-value tasks. The result is more responsive customer service and the ability to unlock new revenue channels through more sophisticated service offerings. The integration of core tools will help MSPs streamline operations, reduce costs, and make better decisions faster, all of which contribute to higher profitability and customer satisfaction.

Customer loyalty is also built on mutual understanding and consistent value delivery. Most MSPs have been operating on a break/fix model for a long time, but it’s ineffective if your goal is to build long-term relationships with your clients. Instead, MSPs should focus on proactive engagement, transparent communication, and demonstrating tangible business outcomes. When clients see that their MSP is actively working to improve their IT environment and contribute to their business goals, trust deepens. This commitment to ongoing value, supported by efficient operations and advanced technology, strengthens the bond between MSP and client, leading to higher retention rates and profitability.

Leveraging IT Process Automation

IT Process Automation is a powerful tool for MSPs seeking to enhance efficiency and profitability. By automating routine and repetitive tasks, MSPs can free up their technical staff from mundane work, allowing them to focus on strategic initiatives and complex problem-solving. Tasks like software patching, managing standard helpdesk tickets, and executing simple incident response and remediation can be automated, significantly reducing the manual effort required. This automation is critical for addressing labor shortages within the IT sector, as it maximizes the productivity of available personnel.

Beyond efficiency, automation also leads to more consistent and error-free service delivery. Automated processes follow predefined rules, minimizing the risk of human error and ensuring that critical tasks are completed reliably. This consistency improves the quality of service, which directly contributes to customer satisfaction. When clients experience fewer IT issues and faster resolution times for those that do occur, their confidence in the MSP grows. Furthermore, by automating these processes, MSPs can provide more responsive customer service, as their teams are not bogged down by manual tasks and can dedicate more time to client interactions and complex support needs.

Building an Integrated IT Ecosystem

An integrated IT ecosystem is another cornerstone for boosting MSP profitability and loyalty. This involves connecting and streamlining all core tools and platforms used by the MSP, from remote monitoring and management (RMM) to professional services automation (PSA), cybersecurity solutions, and billing systems. By having these tools communicate seamlessly, MSPs can eliminate data silos, reduce manual data entry, and gain a holistic view of their clients' IT environments. This integration helps MSPs streamline operations, reduce costs, and make better decisions faster, leading to improved service delivery and increased efficiency.

For example, an integrated system can automatically generate a service ticket in the PSA when an RMM tool detects an issue. This reduces response times and ensures that no alerts are missed. Similarly, billing systems integrated with service delivery platforms can accurately track time and materials, ensuring precise and transparent invoicing. This level of integration enhances operational efficiency, allowing MSPs to manage more clients with the same or fewer resources, thereby increasing their profit margins. It also improves the client experience by providing a more cohesive and professional service, reinforcing their decision to partner with the MSP.

Unlocking New Revenue Channels

By becoming more operationally and technologically advanced, MSPs can unlock new revenue channels. Automation and integrated systems allow MSPs to deliver services more efficiently, which means they can take on more clients or offer a broader range of specialized services without significantly increasing their overhead. For instance, with a robust cybersecurity platform integrated into their ecosystem, MSPs can expand their offerings to include advanced threat detection, compliance management, and security awareness training, catering to the growing demand for managed security services (MSSP).

New and revolutionary technologies create fresh opportunities. MSPs who embrace these technologies quickly can develop niche services that cater to emerging client needs, such as cloud management, data analytics, or specialized industry solutions. This proactive approach to technology adoption allows MSPs to differentiate themselves in a competitive market and attract new clients seeking cutting-edge solutions. By continuously evolving their service portfolio and leveraging their enhanced operational capabilities, MSPs can not only retain their existing client base but also expand into new lucrative markets, driving sustainable growth and long-term profitability. For more details, see Managed Services Cost Guide.

How Much Does an Average MSP Charge?

The cost of an average MSP is not a fixed number; it depends on your organization’s size, complexity, and needs. This variability means that while one small business might pay a few hundred dollars a month for basic monitoring, a larger enterprise with complex infrastructure and stringent security requirements could pay several thousands. The pricing models discussed earlier—per-user, per-device, or tiered bundles—all contribute to this variation, as do the specific services included in the contract. For small and mid-sized businesses in Chicago, hiring a managed service provider (MSP) can feel like a big leap, and leaders often ask the same question first: “How much does an MSP cost?” The answer is nuanced, reflecting the tailored nature of managed IT services.

Despite the upfront cost, partnering with the right MSP often saves more than it costs in the long run. In fact, businesses using managed IT services reduce IT costs by up to 40% while boosting efficiency and security. These savings come from various sources: avoiding the high salaries and benefits of an in-house IT team, reducing downtime through proactive maintenance, leveraging an MSP's purchasing power for software and hardware, and minimizing security breach costs. The investment in an MSP should be viewed as a strategic decision that optimizes IT spending and contributes to overall business health, rather than just another operational expense.

To make the smartest investment, businesses need to understand not only what an MSP costs but also what their total IT budget should look like, how to prioritize spending, and how to ensure every dollar works toward their business goals. This involves a thorough assessment of current IT infrastructure, future growth plans, and specific pain points. An MSP can help in this assessment, providing insights into areas where costs can be optimized and where strategic investments can yield the greatest returns. The goal is to achieve a balance between day-to-day IT essentials and long-term growth objectives, ensuring that IT services are a driver of business success.

Factors Driving MSP Costs

Several key factors drive the overall cost of MSP services. The scope of services is paramount; a basic package covering monitoring and patching will naturally be less expensive than a comprehensive plan that includes advanced cybersecurity, 24/7 helpdesk support, cloud management, and strategic IT consulting. The number of users and devices under management directly impacts costs, especially with per-user or per-device pricing models. The complexity of the IT environment also plays a significant role. Businesses with legacy systems, multiple locations, or highly specialized software will generally require more intensive management and thus incur higher costs.

The industry vertical a client operates in can also influence pricing. Industries with strict regulatory compliance requirements, such as healthcare (HIPAA) or finance (PCI DSS), often need specialized IT services to meet these mandates. This can include enhanced data encryption, audit trails, and specific security protocols, all of which add to the service cost. Furthermore, the level of expertise and experience of the MSP itself can affect pricing. Highly specialized MSPs with certifications in specific technologies or industries may charge more for their premium knowledge and proven track record. This is why MSPs have different cost structures, different services, and different value they provide.

The ROI of Managed IT Services

While the initial question might be "How much does an MSP cost?", a more strategic inquiry is "What is the return on investment (ROI) of managed IT services?" The data suggests a strong positive ROI: businesses using managed IT services reduce IT costs by up to 40% while boosting efficiency and security. This cost reduction comes from several avenues. First, MSPs can help optimize existing IT infrastructure, identifying redundancies and implementing more cost-effective solutions. Second, their proactive approach to maintenance and security minimizes costly downtime and data breaches. A single security incident can cost a business millions, making the preventative measures of an MSP highly valuable.

Beyond direct cost savings, MSPs contribute to increased operational efficiency. By taking over routine IT tasks, they free up internal staff to focus on core business activities, which indirectly boosts productivity and innovation. Improved security, a hallmark of managed services, protects critical data and intellectual property, safeguarding the business's reputation and financial health. Furthermore, MSPs often provide access to advanced technologies and expertise that would be prohibitively expensive to maintain in-house. This access allows businesses, particularly SMBs, to leverage enterprise-grade IT solutions, giving them a competitive edge. The comprehensive value delivered by an MSP often far outweighs the monthly service fee, making it a sound investment for long-term growth and stability.

Frequently Asked Questions

What is the most common MSP pricing model?

While MSPs use a variety of pricing models, a combination of per-user and per-device is very popular. Additionally, tiered bundles for managed services are also widely adopted. These models allow MSPs to cater to diverse client needs and offer predictable billing. In 2023, 63% of MSPs identified as general-purpose providers, often employing flexible models to serve a broad client base.

How does per-user pricing differ from per-device pricing?

Per-user pricing charges a flat monthly fee per employee, typically covering all their devices, such as laptops, desktops, and mobile phones. Per-device pricing, on the other hand, charges clients based on the number of individual devices managed, like $100 per workstation or $250 per server each month. Per-user is often better for supporting people across multiple devices, while per-device works well for managing a fixed inventory of hardware.

Can MSPs help reduce IT costs for businesses?

Yes, businesses using managed IT services can reduce IT costs by up to 40% while boosting efficiency and security. MSPs achieve this by proactively managing IT infrastructure, preventing costly downtime, optimizing existing systems, and providing access to expertise without the overhead of an in-house team. This makes the investment in an MSP a strategic way to save money long-term.

Why are MSPs reevaluating traditional pricing models?

MSPs are reevaluating traditional pricing models, such as per-device, due to changing client needs like hybrid work, multi-device use, and the shift towards cloud services. What once felt straightforward may now seem outdated in complex environments where billing tied solely to physical devices doesn't capture the full value of services like cloud management or user support across multiple endpoints.

What is the Kaseya MSP Benchmark Survey?

The Kaseya MSP Benchmark Survey is an annual report that gathers insights from managed service providers worldwide about their pricing, profitability, and market trends. In 2023, the survey had 1,091 respondents, with 83% from the Americas, 11% from EMEA, and 6% from APAC. It helps MSPs understand industry benchmarks and identify opportunities for growth and improvement.

— The MSP Directory Team