What are Managed Services?

Managed services is the arrangement in which a business pays an outside provider a flat monthly fee to keep its technology running, instead of paying by the hour when something breaks. The provider is called a managed service provider, or MSP, and the arrangement covers monitoring, maintenance, support and security for a defined set of computers, servers and network equipment. This guide explains what is included, what usually is not, how it compares with the alternatives, how it is priced, and how to judge a provider.

What is included

The details vary between providers, but a managed IT services plan generally covers:

• Monitoring of every covered computer, server and network device, around the clock, so a failing disk or a full drive is seen before anyone calls.
• Patching of operating systems and common applications on a schedule you approve, with a record of what was done.
• Help desk and remote support for the people who use the covered devices: passwords, email, printers, software questions and the “it was working yesterday” problems.
• Server and network maintenance, on site or in the cloud, including the firewall, switches and wireless.
• Security fundamentals: endpoint protection, secure configuration, multi-factor authentication, and the coordination of the deeper layers.
• Backup management: making sure backups run, verifying them, and restoring when needed.
• Vendor coordination with your internet, software and phone providers, so you are not the go-between.
• Reporting and planning: what was done, what is coming due, and what to budget for.

What is usually priced separately

Software licences such as Microsoft 365, billed at the vendor’s rate. Deeper security layers such as managed detection and response, security awareness training and email security, priced per user or per device. Backups of servers and cloud data. Hardware, which a good provider recommends without commission. And projects, such as office moves, server replacements and cloud migrations, which are scoped and quoted so they never surprise the monthly bill. Our pricing page lists which is which.

The alternatives

Break/fix and hourly support

You call when something is broken and pay for the time. It is cheap when nothing goes wrong and expensive when something does, and it gives the provider no reason to prevent problems. It suits a very small office that calls twice a year. See hourly IT support.

An in-house IT person

A full-time administrator in the Twin Cities costs well into five figures in salary before benefits, tools and training, and one person cannot be an expert in help desk, servers, networking, cloud and security at once, or be available on holiday. For companies above about a hundred people it starts to make sense, usually alongside a provider.

Co-managed IT

The middle path: your IT person keeps part of the work and the provider takes the rest, with the split written into a responsibility matrix. It is the arrangement most companies with one IT employee end up wanting. See co-managed IT services.

How managed services are priced

Most providers price per user per month, which is simple but charges a company with shared workstations for people rather than equipment. Some price per device, some sell tiered bundles, and some fold everything into one all-inclusive number that hides what each piece costs. We price per device, computer, server, cloud environment and firewall, at a flat monthly rate with the security layers shown separately, because it is the model a client can check. Our managed IT services cost page publishes every rate, and the pricing calculator gives a ballpark in about a minute.

How to judge a provider

1. Do they answer the phone? A technician, not a phone tree or a portal you must log into first. Ask what happens when an office is down at 8 a.m.
2. Are they audited? A managed provider holds the keys to everything you own. A SOC 2 audit is the only independent evidence that they control that access; see what SOC 2 compliance is.
3. Do they publish prices? A provider who will not put a number on a page will not make the invoice easy to read either.
4. What is the contract? Month to month is a provider betting on its own service. Three-year terms are a provider betting on your inertia.
5. Will they show you how they work? The handover, the first month, the routine. Ours is written down at what to expect as a client.
6. Who owns the documentation? You should, with a copy in your hands, so leaving is possible.

Who managed services suit

Businesses from about ten computers to a few hundred, in any industry, that would rather have a flat bill and a team than an hourly bill and a stranger. In our own client list that is law firms, accountants, manufacturers, contractors, clinics, nonprofits and software companies across the Twin Cities. Our managed IT services page describes the service in full, and the industry pages describe how it fits each kind of business.

Common questions

What is the difference between managed services and IT support?

IT support is the help you get when something is wrong. Managed services is an arrangement in which a provider is responsible for keeping things from going wrong in the first place, with support included. The first is a transaction; the second is a relationship with a flat monthly fee.

What does an MSP actually do every month?

Watches every computer, server and network device around the clock, applies updates on a schedule, answers the help desk, maintains servers and backups, keeps security layers running, coordinates with your software and internet vendors, and reports on all of it. Most of that work is invisible when it is done well.

Is managed IT worth it for a small business?

Usually from about ten computers upward. Below that, hourly support may be cheaper if nothing goes wrong. Above it, the flat rate is typically less than the hourly bills, and far less than the cost of the outages that hourly support arrives after.

How much do managed services cost?

Providers price per user or per device; we price per device, at a flat monthly rate with no long-term contract. Every rate is on our pricing page and the calculator gives a ballpark in a minute.

Can we keep our own IT person?

Yes. Co-managed IT keeps your in-house staff in charge and adds the provider’s team behind them for tickets, tools, projects and coverage, with the split written down.

Talk to us

If you are weighing managed services against what you have now, we will look at your setup and give you a flat monthly price to compare. Call 952-548-5558 or contact us; the first conversation is free and there is no long-term contract.