MSP Project Pricing Guide

Last updated: April 2026

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Quick Answer

Managed service providers (MSPs) are paid through various pricing models, with a combination of per-user and per-device, and tiered bundles being popular choices.
Businesses using managed IT services can reduce IT costs by up to 40% while also boosting efficiency and security.
The 2023 Kaseya MSP Benchmark Survey had 1,091 respondents, with 83% from the Americas.
Managed security service providers (MSSPs) increased their share to 18% of respondents in 2023, up from 17% in 2022.

Managed service providers (MSPs) approach pricing with careful consideration, as it directly impacts their profitability and revenue. They often choose between models like per-user, per-device, or tiered bundles, adapting their approach based on client profiles and market demands. For example, per-device pricing charges clients based on the number of managed devices, such as laptops or servers. This model offers simplicity and predictable revenue, making it easy for clients to understand their bills. In fact, many businesses find that partnering with an MSP can lead to significant savings. Businesses using managed IT services can reduce IT costs by up to 40% while also boosting efficiency and security, according to LeadingIT. This focus on cost reduction and improved performance drives small and midsize businesses (SMBs) to seek out MSPs for their digitalization efforts, operational streamlining, and cybersecurity needs.

What Are the Key MSP Pricing Models?

MSPs use several key pricing models to bill clients for their services, which are chosen based on industry focus, regional demands, and client needs. Pricing is a crucial aspect that directly affects an MSP's profitability and revenue, requiring careful consideration before implementation Kaseya's guide on MSP pricing. A strong pricing model must be suitable for a business's current needs and capable of scaling and adapting to future demands. This adaptability ensures that as client requirements evolve or as the MSP expands its service offerings, the pricing structure remains effective and fair.

Considering Customer Profile and Demand

Before selecting a pricing system, MSPs must consider the customer profile and demand patterns. Different types of clients, from small startups to larger enterprises, will have varying IT needs and budget sensitivities. Understanding these nuances helps an MSP tailor its offerings and pricing to attract and retain its target market. For instance, a small business with a limited number of employees and devices might prefer a straightforward, predictable pricing model, while a larger, more complex organization might benefit from a flexible, tiered approach that can accommodate diverse systems and specialized support. The region an MSP serves also plays a role, as market rates and competitive landscapes can differ significantly from one area to another. This means a model popular in one geographic location might not be as effective in another, necessitating localized adjustments.

Popular Pricing Structures

Among the various options available, some of the most popular pricing models for MSPs include a combination of per-user and per-device, and tiered bundles for managed services. These models offer different advantages depending on the client's infrastructure and the scope of services provided.

Combination of Per-User and Per-Device

This hybrid model allows MSPs to charge clients based on both the number of individual users and the number of devices under management. For example, an MSP might charge a flat fee per employee, covering their basic IT support and access, while also charging separate fees for specific devices like servers or specialized workstations. This approach can provide a comprehensive billing structure that accounts for both human-centric and hardware-centric IT needs. It allows for flexibility, ensuring that clients are billed appropriately for the resources they consume, whether it's an employee needing support across multiple devices or a critical server requiring specialized monitoring. This model can be particularly effective for environments where employees use a variety of devices, including laptops, desktops, and mobile phones, all requiring consistent management and support.

Tiered Bundles for Managed Services

Tiered bundles offer clients different levels of service packages, each with a specific set of inclusions and a corresponding price point. These bundles often range from basic monitoring and maintenance to more comprehensive support that includes advanced cybersecurity, strategic IT consulting, and rapid response times. Clients can choose the tier that best aligns with their budget and their operational requirements. This model simplifies decision-making for clients, as they can easily compare the features and benefits of each package. For MSPs, tiered bundles can help streamline service delivery and manage expectations by clearly defining the scope of work for each level. It also creates opportunities for upselling clients to higher tiers as their business needs grow or as they seek more advanced protection and support.

The Importance of Adaptability

No matter the chosen model, the ability to adapt and scale is paramount. As businesses evolve, their IT infrastructure and support needs will change. A pricing model that can accommodate growth, technological shifts, and new service demands ensures long-term profitability for the MSP and continued value for the client. This means regularly reviewing and adjusting pricing strategies based on market trends, cost structures, and the value delivered to customers.

How Does Per-Device Pricing Work?

Per-device pricing is a billing structure where clients are charged based on the number of managed devices within their IT environment. This model establishes a set monthly fee for each type of device, ensuring predictable costs for clients and consistent revenue for MSPs. The appeal of this model lies in its simplicity. Clients can easily understand how their bill is calculated, as it directly correlates with their inventory of managed hardware.

Defining Per-Device Charges

In a per-device pricing model, an MSP typically assigns a specific monthly fee to different categories of devices. These categories often include desktops, laptops, servers, printers, and mobile phones. Each device type usually has its own distinct fee. For example, an MSP might charge $100 per workstation and $250 per server each month. This fee remains consistent regardless of how much support each individual device actually requires during the billing period. The services covered by this flat fee usually include essential IT management tasks such as monitoring, patching, and antivirus protection, as detailed by Flexpoint's analysis of per-device pricing. This means that whether a workstation needs daily intervention or runs smoothly for weeks, the monthly charge for that device stays the same.

Inventory-Based Billing

The core characteristic of per-device pricing is that billing is tied to inventory rather than usage. This is a significant distinction from models that might charge based on the amount of support time used or the volume of data processed. With per-device pricing, the invoice increases when a new device is added to the managed inventory. Conversely, if a device is removed from management, the cost drops proportionally. This straightforward approach simplifies billing for both the MSP and the client. For the MSP, it often translates to predictable revenue streams and fewer payment disputes, as the billing calculation is transparent and based on a clear count of assets. For clients, it offers clarity and makes budgeting for IT services more manageable, as they know exactly what they will pay per device each month.

Services Included in Per-Device Fees

The services typically bundled into a per-device fee are designed to ensure the smooth operation and security of each managed asset. These often include:

Monitoring: Continuous oversight of device performance, health, and availability to detect issues proactively.
Patching: Regular application of software updates and security patches to keep systems secure and functional.
Antivirus Protection: Management and updates of antivirus software to safeguard against malware and other cyber threats.
Remote Support: Access to technical assistance for troubleshooting and resolving common device-related problems.
Backup Management: Ensuring data on devices is regularly backed up and recoverable, though actual storage costs might be separate.

The specific scope of services can vary between MSPs and device types. For instance, server management might include more in-depth monitoring, maintenance, and disaster recovery planning compared to a standard workstation. The simplicity of this model allows MSPs to standardize their service delivery for common devices, making their operations more efficient. However, it also means that highly specific or intensive support requirements for a particular device might fall outside the standard per-device fee and could incur additional charges, which should be clearly outlined in the service agreement.

Evolution of Per-Device Pricing

While per-device pricing has been a staple for MSPs for many years, the evolving IT landscape is prompting a reevaluation. Modern work environments, characterized by hybrid work models and multi-device usage per user, introduce complexities that challenge the straightforward nature of per-device billing. However, for many businesses, especially those with a stable and predictable device count, it remains a highly effective and preferred pricing model due to its transparency and ease of understanding.

When Does Per-Device Pricing Work Best, and When Does It Fall Short?

Per-device pricing, with its simple, inventory-based billing, offers clear advantages for certain types of organizations and IT environments. However, its effectiveness can diminish as client needs become more complex and as modern work trends continue to evolve. Understanding these nuances helps MSPs determine if this model aligns with their growth plans and client expectations.

Where Per-Device Pricing Excels

Per-device pricing works well for smaller organizations or those with predictable headcounts and a relatively stable number of IT assets. For these types of businesses, the simplicity of the model is a significant draw. Clients can easily understand how their bill is calculated, as it directly corresponds to the number of managed devices they have. This transparency fosters trust and makes budgeting for IT services straightforward. For an MSP, this model often means predictable revenue and fewer payment disputes because the billing is tied to a tangible and easily quantifiable metric: the device count. This predictability helps MSPs manage their cash flow and allocate resources more effectively.

Ideal Client Scenarios

Small Businesses: Companies with a limited number of employees and a fixed set of desktops, laptops, and perhaps one or two servers find this model easy to grasp and manage. Their IT inventory is often stable, leading to consistent monthly costs.
Businesses with Predictable Growth: Organizations that experience slow, steady growth in their device count can integrate new devices into the pricing model without major overhauls to their budget or the MSP's billing system.
Standardized IT Environments: Companies that primarily use standard workstations and common server setups benefit from the uniform pricing. This allows the MSP to deliver standardized services efficiently across similar devices.
Budget-Conscious Clients: For clients who prioritize clear, upfront costs and want to avoid variable billing, per-device pricing offers the transparency they seek. They know exactly what they are paying for each managed asset.

Limitations and Challenges of Per-Device Pricing

Despite its simplicity, per-device pricing faces challenges in today's dynamic IT landscape. Modern client needs, such as hybrid work environments, multi-device use per employee, and outcome-based expectations, are pushing providers to reevaluate traditional billing models. What was once straightforward may now seem outdated in complex IT environments. For more details, see Flexpoint's analysis of per-device pricing.

The Rise of Multi-Device Users

Many employees today use multiple devices—a desktop at the office, a laptop for remote work, a tablet for presentations, and a smartphone for mobile access. In a strict per-device model, this means an MSP charges for each of these devices individually, even if they are all used by the same person. This can lead to higher costs for clients without necessarily reflecting a proportional increase in the complexity of managing that user's overall IT experience. For instance, if a user's laptop and desktop are both managed, the MSP bills for two devices, even if much of the support is user-centric (e.g., password resets, software access issues) rather than device-specific. This situation can make the per-device model feel less fair or less value-driven from the client's perspective.

Hybrid Work Environments

The shift towards hybrid work models, where employees split their time between the office and remote locations, further complicates per-device pricing. Devices are no longer confined to a single, easily inventoried location. Employees might use personal devices (BYOD) alongside company-issued ones, or their work devices might move between different networks and physical locations. Tracking and managing these fluctuating device counts and diverse environments under a rigid per-device model can become cumbersome for the MSP. It also might not adequately cover the broader security and connectivity challenges inherent in distributed workforces.

Focus on Outcomes vs. Inventory

Clients are increasingly looking for outcomes from their MSPs, such as guaranteed uptime, enhanced security posture, or improved productivity, rather than just the management of individual pieces of hardware. A per-device model, by its very nature, focuses on the inventory of hardware. This can create a disconnect if the client's primary concern is overall business continuity or strategic IT growth, rather than simply the number of laptops being monitored. This misalignment can make it harder for MSPs to demonstrate the full value of their services beyond just device maintenance, potentially leading clients to question the billing structure as their needs evolve beyond basic device management.

Scalability Issues with Rapid Growth

For businesses experiencing rapid growth, the per-device model can lead to quickly escalating IT costs, which might become a deterrent. As a team expands and new devices are constantly added, the proportional increase in cost can become substantial, potentially straining the client's IT budget. This can make the model less appealing for startups or fast-growing companies that need more flexible and scalable IT solutions without a direct linear increase in costs for every new piece of hardware.

Given these challenges, many MSPs are now exploring or shifting towards more adaptive billing approaches, such as per-user or all-inclusive models, which may better suit the complexities of modern IT environments.

What Other Pricing Models Do MSPs Use?

Beyond per-device pricing, MSPs commonly employ other models to cater to diverse client needs and business structures. These alternatives, such as per-user pricing and flat-rate, all-inclusive pricing, offer different approaches to billing that can better align with modern IT environments and client expectations. Each model presents unique advantages and is suited for specific organizational profiles.

Per-User Pricing

Per-user pricing is a model where clients pay a flat fee per employee or user, and this fee typically covers all the devices that user utilizes. This approach shifts the focus from individual hardware pieces to the human element of IT support. For example, if an employee uses a desktop, a laptop, and a mobile phone for work, a single per-user fee would cover the management and support for all those devices for that specific individual. This model acknowledges that many IT support issues are user-centric, such as password resets, software access problems, or general troubleshooting, rather than being tied to a specific hardware component.

Benefits of Per-User Pricing

Simplicity for Multi-Device Users: In an era where employees often use multiple devices (laptop, desktop, smartphone), per-user pricing simplifies billing. The client pays one fee per person, regardless of how many devices that person uses, making it easier to budget and understand costs.
Scalability with Headcount: For organizations with predictable employee growth, costs scale proportionally with the number of users. As a team grows, the IT costs grow in a clear, linear fashion. This can be more appealing than per-device pricing for companies that frequently add or remove devices per user.
Focus on the User Experience: This model encourages MSPs to focus on the overall user experience and productivity, rather than just managing hardware. It aligns well with the idea that IT services are there to support people in their work.
Predictable for Clients: Similar to per-device, per-user pricing offers predictability. Clients know their monthly IT bill will adjust directly with their employee count, making financial planning simpler.

When Per-User Pricing Works Best

Per-user pricing works well for businesses where employees are the primary consumers of IT services and where a single user might operate multiple devices. It is particularly suitable for organizations with a stable number of employees but potentially variable device counts per employee, or those adopting hybrid work models where employees use different devices in different locations. As your team grows, your costs grow proportionally with this model, making it a good fit for organizations that want a direct correlation between their workforce size and their IT expenditure, as noted by LeadingIT's guide on MSP costs.

Flat-Rate, All-Inclusive Pricing

Flat-rate, all-inclusive pricing is another common model where the MSP provides a comprehensive suite of managed IT services for a single, fixed monthly fee. This fee typically covers everything from helpdesk support and network monitoring to cybersecurity solutions and strategic IT consulting, often without additional charges for specific devices or users. The aim is to provide complete IT peace of mind, where the client knows their total monthly IT expenditure upfront, regardless of the volume of support tickets or the number of devices.

Characteristics of All-Inclusive Pricing

Comprehensive Coverage: This model aims to cover all aspects of a client's IT needs, minimizing unexpected costs. It often includes proactive maintenance, remote support, on-site visits (within reason), cybersecurity management, and sometimes even vendor management.
Predictability for Budgeting: Clients benefit from extreme budget predictability. They pay a single, consistent fee each month, which simplifies financial planning significantly. This can be very attractive to businesses that want to avoid variable costs and prefer a fixed operational expense for IT.
Partnership Approach: This model often fosters a deeper partnership between the MSP and the client. Since the MSP's revenue is fixed, it is incentivized to prevent problems from occurring in the first place. Proactive maintenance, robust security, and efficient systems reduce the need for reactive support, which benefits both parties.
Value-Driven: For clients, the value proposition is clear: comprehensive IT management for a single, predictable cost. It allows them to focus on their core business while the MSP handles all IT concerns.

When All-Inclusive Pricing Works Best

Flat-rate, all-inclusive pricing is ideal for businesses that want maximum predictability in their IT budget and a comprehensive, hands-off approach to IT management. It suits organizations that value a strong partnership with their MSP, where the provider is incentivized to maintain a healthy, stable IT environment to reduce their own support workload. This model is often favored by businesses looking for a complete outsourcing solution for their IT needs, desiring a single point of contact and a unified service offering. Both per-user and per-device models, as well as flat-rate options, are common approaches, and the best fit depends on the specific requirements and scale of the client's operations.

How Profitable Is the Average MSP?

The profitability of an average MSP is influenced by its ability to adopt new technologies, streamline operations, and meet the evolving demands of its client base. The landscape for MSPs is dynamic, with fresh opportunities emerging as revolutionary technologies replace older systems and tools. MSPs that embrace these new technologies quickly can gain a competitive advantage and boost their profitability.

Leveraging Technology for Efficiency and Cost Reduction

New technologies like IT Process Automation and a fully integrated IT ecosystem are critical for MSPs looking to reduce costs, increase efficiency, and streamline processes. By automating routine tasks, MSPs can significantly improve their operational margins. For instance, automating tasks such as patching, standard ticket resolution, and simple incident response and remediation allows MSPs to address common labor shortages. This automation frees up skilled technicians to focus on more complex, high-value tasks, which in turn provides more responsive customer service. This efficiency not only enhances customer satisfaction and loyalty but also unlocks new revenue channels for the MSP. The integration of core tools further helps MSPs streamline operations, reduce costs, and make better decisions faster, contributing directly to their bottom line.

Insights from the 2023 Global MSP Benchmark Survey

To understand the current state of MSP profitability and market trends, we can look at the findings from the 2023 Global MSP Benchmark Survey Report. This comprehensive survey included 1,091 respondents, offering a broad perspective on the industry. The largest portion of respondents, 83%, came from the Americas, indicating a strong representation from that region. Approximately 11% of respondents were from Europe, the Middle East, and Africa (EMEA), with the remaining 6% from the Asia Pacific (APAC) region.

MSP Profile Breakdown

The survey also provided insights into the types of MSPs operating in the market:

General-Purpose MSPs: In 2023, about 63% of respondents identified themselves as general-purpose MSPs. This figure represents a slight decrease from 67% in 2022, suggesting a shift towards more specialized services.
Managed Security Service Providers (MSSPs): The segment of Managed Security Service Providers (MSSPs) showed significant growth. MSSPs increased year over year to 18% of the respondent base in 2023, up from 17% in 2022. This rise highlights the growing importance of cybersecurity as a specialized offering.
Network and Data Center-Focused MSPs: MSPs primarily focused on overseeing servers, storage devices, and other network components that keep businesses running also saw substantial growth. This category increased to 19% in 2023, a notable jump from 12% in 2022. This growth indicates a strong demand for specialized infrastructure management services.
Specialized by Market Vertical: While not explicitly tracked in 2023, this category represented 4% of respondents in 2022, suggesting some MSPs focus on niche markets.

These shifts in MSP profiles indicate evolving market demands. The growth in MSSPs and network/data center-focused MSPs suggests that specialization is becoming a key driver for profitability.

Addressing Client Demand from SMBs

Small and midsize businesses (SMBs) represent the most lucrative client base for MSPs. These businesses are increasingly turning to MSPs to accelerate their digitalization efforts, streamline their operations, and strengthen their cybersecurity efforts. Whether the global economy skirts a potential recession or dives deep into it, SMBs recognize the critical need for robust IT infrastructure and expert support. To meet this escalating demand, MSPs must step up their game. This means becoming more operationally and technologically advanced. MSPs that can deliver superior service, leverage automation, and offer specialized solutions are better positioned to capture this market segment and, consequently, boost their profitability. "The most common question from MSPs is how to 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," said Gaidar Magdanurov of MSP Notes. This emphasizes the importance of understanding internal costs and value proposition rather than just matching competitor prices for sustainable profitability.

How Can MSPs Boost Profitability and Customer Loyalty?

Boosting profitability and securing customer loyalty are intertwined goals for managed service providers. Achieving these objectives requires a strategic approach that combines operational efficiency, technological advancement, and a customer-centric pricing model. MSPs must look beyond just service delivery and focus on creating long-term value for their clients. For more details, see LeadingIT's guide on MSP costs and IT budgeting.

Streamlining Operations Through Integration

One of the most effective ways for MSPs to boost profitability is by streamlining operations. The integration of core tools is a critical step in this process. By bringing together various IT management platforms—such as remote monitoring and management (RMM), professional services automation (PSA), and cybersecurity solutions—MSPs can create a unified IT ecosystem. This integration helps them reduce costs by eliminating redundant tasks and manual handoffs between different systems. It also allows MSPs to make better decisions faster because all relevant data is accessible from a single pane of glass. For instance, an integrated system can automatically generate a service ticket from a monitoring alert, assign it to the appropriate technician, and track its resolution, all while updating the client's billing information. This level of automation and interconnectedness significantly enhances operational efficiency.

Impact on Efficiency and Service Delivery

Reduced Labor Costs: Automation of routine tasks, as mentioned in Kaseya's guide on MSP pricing, directly reduces the need for manual intervention, addressing labor shortages and optimizing staff utilization. This means technicians can focus on higher-value, more complex problem-solving rather than repetitive administrative work.
Faster Response Times: Integrated tools allow for quicker identification and resolution of issues. When systems communicate seamlessly, alerts are acted upon instantly, leading to faster incident response and remediation. This directly translates to improved customer service and reduced downtime for clients.
Improved Resource Allocation: With better visibility into operational data, MSPs can strategically allocate their resources, ensuring that skilled personnel are deployed where they are most needed. This prevents bottlenecks and ensures efficient service delivery across the client base.

Crafting a Scalable and Adaptive Pricing Model

A strong pricing model is fundamental to an MSP's profitability and its ability to retain customers. Such a model should be suited to the business's current needs but, crucially, must also be capable of scaling and adapting to future demands. The IT landscape is constantly evolving, with new technologies and threats emerging regularly. A rigid pricing structure that cannot accommodate these changes will quickly become outdated and may alienate clients.

Flexibility for Future Growth

Accommodation for New Technologies: As MSPs adopt new services, such as advanced AI-driven cybersecurity or cloud-native solutions, their pricing model must be flexible enough to incorporate these offerings without requiring a complete overhaul.
Client Growth and Contraction: A scalable model can easily adjust as clients grow, adding users or devices, or even if they need to scale back during economic shifts. This flexibility demonstrates a commitment to partnership rather than a rigid contractual obligation.
Value-Based Pricing: Moving towards value-based pricing, where the cost is tied to the business outcomes delivered rather than just the raw services, can significantly boost profitability. When clients see a clear return on their IT investment, they are more willing to pay a premium. This also builds stronger loyalty as the MSP becomes a strategic partner.

Demonstrating Value and Cost Savings

One of the most compelling ways to secure and retain clients is by demonstrating the tangible benefits of managed IT services. Businesses using managed IT services can reduce IT costs by up to 40% while boosting efficiency and security, according to LeadingIT's guide on MSP costs and IT budgeting. This statistic is a powerful selling point that MSPs can leverage to show potential clients the financial advantages of outsourcing their IT needs.

Building Customer Loyalty

Proactive Problem Solving: By adopting a proactive approach, MSPs can prevent issues before they impact client operations. This reduces downtime, enhances productivity, and builds a reputation for reliability.
Strategic Partnership: Instead of being just a service provider, MSPs should aim to be a strategic partner. This involves offering insights, advising on technology roadmaps, and helping clients align IT with their business goals. This deeper engagement fosters trust and loyalty.
Consistent Communication: Regular communication, transparent reporting, and clear service level agreements (SLAs) build confidence. Clients appreciate knowing what their MSP is doing, how their IT environment is performing, and the value they are receiving.
Exceptional Customer Service: Beyond technical competence, excellent customer service—responsive, empathetic, and knowledgeable—is critical. When clients feel supported and understood, their loyalty grows.

By focusing on operational excellence through integration, adopting a flexible pricing strategy, and consistently demonstrating the value and cost savings they provide, MSPs can significantly boost their profitability and cultivate enduring customer loyalty.

What Is an MSP?

A Managed Services Provider (MSP) is a third-party organization that remotely manages a customer's information technology (IT) infrastructure and end-user systems. These providers offer a wide range of outsourced support services designed to keep a business's IT operations running smoothly and securely. The core function of an MSP is to take on the responsibility for a client's IT functions, often proactively, to prevent issues before they arise.

Evolution from Break/Fix

Historically, many IT support companies operated on a "break/fix" model. In this traditional model, clients would only call an IT professional when something went wrong—a server crashed, a computer malfunctioned, or a network went down. The IT provider would then fix the problem and bill for their time and materials. While this model still exists for some immediate needs, it is generally ineffective if the goal is to build long-term relationships with clients, as noted by Zomentum's guide to MSP service agreements. The break/fix approach is reactive, meaning that IT issues often cause significant downtime and disruption before they are addressed.

MSPs represent a significant shift from this reactive model to a proactive one. Instead of waiting for problems, an MSP continuously monitors, manages, and maintains a client's IT systems to prevent failures, optimize performance, and enhance security. This proactive approach helps businesses avoid costly downtime and ensures greater operational continuity.

Core Services Offered by MSPs

MSPs offer a variety of outsourced support services for businesses. These services can be comprehensive, covering nearly all aspects of a client's IT environment, or specialized, focusing on particular areas like cybersecurity or cloud management. According to BeyondTrust, an MSP remotely manages a customer's IT infrastructure and end-user systems. Some common services include:

Network Management: Monitoring and maintaining local area networks (LANs), wide area networks (WANs), and wireless networks to ensure connectivity and performance.
Server Management: Overseeing physical and virtual servers, including patching, backups, and performance optimization.
Desktop and End-User Support: Providing helpdesk services, troubleshooting user issues, and managing workstations and mobile devices.
Cybersecurity Services: Implementing and managing firewalls, antivirus software, intrusion detection systems, and other security measures to protect against cyber threats. Managed Security Service Providers (MSSPs) specialize entirely in this area, which increased to 18% of the respondent base in the 2023 Kaseya MSP Benchmark Survey, up from 17% in 2022.
Data Backup and Disaster Recovery: Ensuring critical data is regularly backed up and establishing plans for quick recovery in case of data loss or system failure.
Cloud Services: Managing cloud infrastructure, applications, and storage, often across platforms like AWS, Azure, or Google Cloud.
Software Management: Ensuring software licenses are compliant, applications are updated, and users have access to the tools they need.

Strategic Growth and Partnership

Beyond technical support, the right MSP can also help strategically grow a business, as highlighted by SAP. MSPs often act as strategic partners, providing expert advice on technology roadmaps, IT budgeting, and digital transformation initiatives. They can help businesses leverage technology to achieve their objectives, whether that's improving efficiency, expanding into new markets, or enhancing customer engagement.

For small and midsize businesses (SMBs), partnering with an MSP can feel like a big leap, but it often results in significant benefits. Businesses using managed IT services can reduce IT costs by up to 40% while boosting efficiency and security, according to LeadingIT. This combination of cost savings, improved performance, and strategic guidance makes MSPs an invaluable asset for organizations looking to optimize their IT operations and drive business growth in an increasingly digital world.

Frequently Asked Questions

How do MSPs make money?

MSPs make money by providing a range of outsourced IT services to clients, typically through recurring revenue models. They charge clients a consistent monthly fee for services like network monitoring, cybersecurity, data backup, and user support. Popular pricing models include per-user, per-device, or flat-rate all-inclusive bundles, which ensure predictable income for the MSP. By automating tasks like patching and incident response, MSPs can reduce operational costs and improve efficiency, freeing up resources to address labor shortages and unlock new revenue channels, increasing customer satisfaction and loyalty. The 2023 Kaseya MSP Benchmark Survey found that 63% of respondents identified as general-purpose MSPs.

What is the most popular MSP pricing model?

While there isn't a single "most popular" model universally, a combination of per-user and per-device pricing, along with tiered bundles for managed services, are among the most common approaches MSPs implement. These models allow MSPs to tailor their billing to customer profiles and demand patterns, ensuring flexibility. For instance, per-device pricing, which charges based on the number of managed devices like desktops or servers, offers simplicity and predictable revenue. The choice often varies with industry focus and the region the MSP serves.

How much does an average MSP charge?

The amount an average MSP charges depends significantly on the organization's size, complexity, and specific IT needs. Pricing models like per-user or per-device mean costs scale with the number of employees or managed hardware. While there isn't a single average fee, businesses using managed IT services can reduce their IT costs by up to 40% while also boosting efficiency and security, according to LeadingIT. This indicates that while costs vary, the investment often leads to significant savings and improved performance.

What are the benefits of using an MSP?

Using an MSP offers numerous benefits, including cost reduction, increased efficiency, and enhanced cybersecurity. MSPs help businesses accelerate digitalization efforts, streamline operations, and strengthen their security posture by providing proactive IT management. For instance, automating tasks like patching and simple incident response helps address labor shortages and provides more responsive customer service. The 2023 Kaseya MSP Benchmark Survey reported that Managed Security Service Providers (MSSPs) increased to 18% of respondents, highlighting the growing demand for specialized security services.

Why are some MSPs moving away from per-device pricing?

Some MSPs are moving away from traditional per-device pricing because modern client needs have changed. The rise of hybrid work environments and multi-device use per employee makes a simple per-device model seem outdated in complex IT setups. What was once straightforward may now lead to higher costs for clients without reflecting the true value of user-centric support. While per-device pricing offers simplicity and predictable revenue, it may not align with clients seeking outcome-based IT solutions or those with rapidly fluctuating device counts.