Managed IT pricing explained
Two quotes can look wildly different and describe the same service. Usually it's because they're built on different pricing models. Here's what each one means, what it quietly rewards, and how to work out which suits you.
The five models you'll be offered
01
Per user, per month
A flat fee for each person, whatever devices they use.
Suits
Most organisations, especially cloud-first ones where people work across a laptop, a phone and sometimes a desktop.
Watch for
Check whether shared devices, meeting rooms and servers are counted as users. They shouldn't be.
What it rewards
Rewards the provider for keeping people working, because more tickets cost them more.
02
Per device, per month
A fee for each laptop, desktop, server and sometimes each phone.
Suits
Places with more devices than people, or shop floors and clinics with shared kit.
Watch for
Adding a second laptop for one person can double their cost. Ask what a device is before signing.
What it rewards
Rewards tidy hardware estates - and quietly penalises hybrid working.
03
Tiered packages
Bronze/silver/gold style bundles at a fixed per-user price per tier.
Suits
Organisations that want a simple decision and don't mind paying for a little they won't use.
Watch for
The thing you need is often one tier above the one you'd have chosen. Compare the feature list, not the tier name.
What it rewards
Rewards clarity, as long as the tiers are honest about what's excluded.
04
Blocks of hours
You buy a bank of hours up front and draw them down.
Suits
Organisations with their own IT person who need occasional backup or specialist help.
Watch for
Hours that expire, and the temptation to avoid raising issues to save the balance. That's how small problems grow.
What it rewards
Rewards efficiency for you, but gives the provider no reason to prevent problems.
05
Pay as you go
Hourly or per-ticket, billed as you use it.
Suits
Very small teams, or as a stopgap while you decide what you want.
Watch for
Costs are unpredictable and nobody is proactively looking after anything.
What it rewards
Rewards the provider when things break. Fine short term, poor as a long-term arrangement.
What a bill is usually made of
Whichever model you choose, the total splits into four parts. If a quote doesn't separate them, ask for a version that does.
01
The agreement
The recurring fee for support, monitoring, maintenance and administration. Predictable, per user, per month.
02
Licences
Microsoft 365, security tooling, backup. Usually passed through at cost or near it, and always itemised.
03
Projects
Migrations, new sites, server replacements. Scoped and priced separately, agreed before work starts.
04
Hardware
Laptops, network kit, phones. Bought through us or direct - whichever is better value for you.
Things worth querying
None of these make a provider dishonest. They do make a quote hard to compare, which is reason enough to ask.
- A per-user price that only applies above a headcount you haven't reached
- "Unlimited support" with a fair-use clause nobody will define in writing
- Onboarding fees that appear after you've agreed the monthly figure
- Automatic annual uplifts with no cap and no notice period
- Licences bundled invisibly, so you can't tell what the service actually costs
- Exit terms that keep your documentation or admin credentials with the provider
How we price it
- Per user, per month - so hybrid working doesn't cost you extra
- Licences itemised separately, never buried in the service fee
- Projects scoped and agreed in writing before anyone starts
- One month's notice after the first term, and your documentation is yours
If a different model suits you better
Some organisations genuinely are better off with blocks of hours or a co-managed arrangement. We'll tell you if that's you, even though it's less revenue for us.
Read about co-managed ITNot sure which model you're being sold?
Send us the quote you've been given. We'll tell you what it includes, what it doesn't, and whether it's fair - even if you end up signing it with someone else.