The price factor!

Let’s start this new year with some low cost managed services. Cost has always been the major shift back for companies while choosing an MSP for themeselves. The reactive break-fix model was one of the real challenges faced by most companies while getting accustomed to the new proactive managed services model. Instead of a flat fee billing model charged by IT consultants and System Engineers, companies can benefit by using a Managed service provider. MSPs typically offer several price structures. Most commonly used is a per-month fee, but MSPs may also charge using a time and material model as well as price per desktop, server, or network device. For this fee they will monitor their client’s IT infrastructure and resolve any issues that arise within it. This provides peace of mind and predictable costs for the client, as well as predictable revenues for the MSP. Managed services are often looked at as a way for small and medium sized businesses to outsource their IT needs at a lower cost than building an in-house IT support department.

Customer & Service Provider – Managed Services Benefits

Key customer benefits:

Customer peace of mind – monitor network on 24×7x365 basis proactively

Single point of contact for all network issues

Single supplier instead of multiple vendors

Defined Service Levels (for service delivery)

Known costs for management & fixed price contracts

Avoid costs of building own management & reporting systems

Lower Total Cost Ownership (TCO) for client

Key Service Provider benefits:

Business contracts – extended longevity

Increased ARPU (average revenue per user)

Ability to interact with & influence customers at a business/application decision making level

Protect vital carriage revenue by de-commoditising & value adding