How MSPs Price & Package IT Services Today

DOLLARS AND SENSE: How MSPS are Pricing and Packaging IT Services Today For Managed IT Services Providers (MSPS), pricing, packaging and service delivery are all players in the game of margins. To get a better look at the current state of MSP pricing strategies and tactics, we asked more than 150 providers how they structure their offerings and what type of margins they receive for different services. PROFILE Company Size (# of employees) 36% 22% 43% <100 100-499 500+ Number of Customers (past year) 30% 26% 1112 45% 오오 오오 500+ 10-99 100-499 Role 36% 34% 30% Directors+ Managers Staff MARGINS MSPS today realize an average of 25-30% margins across all core services. Typical Margins Per Service 39% 36% 36% 35% 33% End-User Support Strategic IT Consulting IT Department Outsourcing/ Contracting Backup/DR/ Storage Software/Apps 33% 32% 29% 28% 23% Cloud/ Virtualization Network Network Security Hardware Monitoring Management PRICING AND PACKAGING MSPS today leverage a number of pricing and packaging strategies in order to maximize their margins, and there's no one-size-fits-all formula to guarantee success. Rather than putting all of their eggs in one basket, many MSPS leverage a hybrid approach to support varying customer bases. Packaging 75% Bundled 59% A La Carte Service Pricing 61% 51% Flat Fee Tiered $ $ 49% 43% Per Device Per User FACTORS AFFECTING PRICING A number of factors impact how MSPS price and package their services, and while these can vary from one service provider to the next, three common elements stand out. ... 41% 39% 37% Cost of Technology or Tools to Support Services Cost of Staff to Cost of Selling Support Services the Services Other factors influencing MSP pricing strategies include: 32% 26% 22% 22% 15% Nature of Engagement/ Customer Relationship Ease of Payment for Customers Ease of Billing Partnerships Needed to Support Services Length of Sales Cycle CO $$$ %24