Explained: Pricing Variability and Outsourced Managed IT Companies
Managed service providers (MSPs) are becoming increasingly popular among businesses of all sizes. MSPs offer a range of services to help businesses manage their IT infrastructure, from network and security management to data backup and recovery. However, not all MSPs are created equal. Some offer their services at a lower cost than others, but is it worth the savings?
A Chevy and a Cadillac. They are both cars and will take you where you need to go, however can they do it in significantly different ways. Likewise, there are significant differences between a “Chevy” MSPs and”Cadillac” MSPs that can impact the quality of service you receive. In this article, we will explore the top 5 differences between a low-cost MSP and a high-cost MSP, and how to choose the right MSP for your business needs.
Understanding the Importance of MSP Services
MSP services are designed to help businesses manage their IT infrastructure more efficiently and cost-effectively, since many businesses don’t have the time or resources to manage their IT needs in-house. MSPs offer a range of services, including support desk, network and security management, data backup and recovery, software management, and hardware support. One of the most important things MSPs provide is proactive monitoring and maintenance of your IT systems. This helps prevent downtime and ensures your business runs smoothly. MSPs can save you time and money by handling routine IT tasks and minimizing the need for expensive in-house IT staff.
Top 5 Differences Between a "Quality" MSP and a "Budget" MSP
Quality of Service
“Quality” MSPs generally offer a higher quality of service than the “Budget” MSPs. The “Quality” MSPs typically have more experienced and highly qualified staff, better infrastructure, and use more advanced technology. They also tend to offer a wider range of services and support, including 24/7 customer service and proactive monitoring and maintenance.
Expect more of a bare bones approach to service from the “Budget” MSPs. They will strip down the fluff and will focus on delivering core services They may have to partner with other teams for security or cloud services, however they can deliver quality service on the core services.
Response Time
One of the most common things we hear from potential clients is that they are frustrated with the time it takes to get a response from their current MSP. When you submit a ticket, you’d like a quick initial response. “Quality” MSPs typically have more technical resources, which allows them to respond faster to IT issues quickly. They also tend to have more sophisticated monitoring and management tools, which can help them detect and resolve issues before they become a problem.
Customization
“Quality” MSPs usually offer more customization options than low-cost MSPs. “Quality” MSPs typically have more resources and expertise, which means they can tailor their services to meet the specific needs of your business. They can also provide more detailed reports and analysis, which can help you make more informed decisions about your IT infrastructure.
The “Budget” MSPs most certainly make sure your systems are maintained and provide support services, however they won’t be able to deviate much from their core services.
Security
“Quality” MSPs usually provide better security than low-cost MSPs. “Quality” MSPs typically have more advanced security technology and can offer more comprehensive security solutions. They also have more experienced security staff who can identify and mitigate security threats more effectively.
Price
Look for an MSP that provides transparent pricing and fits within your budget. Consider the overall value of the services you will receive, rather than just the cost.
How to Choose the Right MSP for Your Business Needs
When choosing an MSP, it is important to consider your business needs and budget. Here are some key factors to consider:
Service Level Agreements (SLAs)
Look for an MSP that offers SLAs that align with your business needs. Work with your potential MSP to craft an SLA that covers the most important facets of your business. SLAs should clearly define the services you will receive, response times, and uptime guarantees. These is where you can define your expectations from the initial get go.
Expertise and Experience
Look for an MSP that has experience working with businesses in your industry and has staff with the necessary expertise to support your IT infrastructure. One-man shops just don’t have the capacity to manage multiple clients and provide a high level of service.
Range of Services
Look for an MSP that offers a range of services that meet your business needs. Consider the types of services you require, such as network and security management, data backup and recovery, and desktop support. Some MSPs can offer coding and application development as well. Consider your needs and make a list so you can be sure you are covered.
Customization Options
Look for an MSP that can tailor its services to meet your specific business needs. The MSP should be able to provide customized reports, analysis, and recommendations that align with your business objectives.
Security
Look for an MSP that has a strong focus on security. The MSP should have advanced security technology, experienced security staff, and offer comprehensive security solutions that align with your business needs..
Pricing
Look for an MSP that provides transparent pricing and fits within your budget. Consider the overall value of the services you will receive, rather than just the cost. A budget shop may not provide a quarterly business review, providing insight into your business operations and budgeting.
Conclusion
Managed service providers (MSPs) offer a range of services to help businesses manage their IT infrastructure more efficiently and cost-effectively. There are significant differences between low-cost MSPs and high-cost MSPs that can impact the quality of service you receive. When choosing an MSP, consider your business needs and budget, and look for an MSP that offers SLAs that align with your business needs, has expertise and experience, provides customization options, has a strong focus on security, and provides transparent pricing. By choosing the right MSP, you can ensure that your business runs smoothly and efficiently.
FAQs
Q: Are high-cost MSPs always better than low-cost MSPs?
A: Not necessarily. While high-cost MSPs typically offer a higher quality of service, faster response times, and more customization and security options, the best MSP for your business depends on your specific needs and budget.
Q: What types of services do MSPs offer?
A: MSPs offer a range of services, including network and security management, data backup and recovery, software management, and hardware support. MSPs also provide proactive monitoring and maintenance of your IT systems.
Q: How do I choose the right MSP for my business?
A: When choosing an MSP, consider your business needs and budget. Look for an MSP that offers SLAs that align with your business needs, has expertise and experience working with businesses in your industry, and offers a range of services that meet your business needs. Also, look for an MSP that provides customization options, has a strong focus on security, and provides transparent pricing.
