Managed IT Service Models: Types and How to Choose

Managed IT service models are the different ways businesses can get IT support from a managed service provider (MSP). The right model helps small companies by reducing headaches and freeing up your team to focus on other aspects of the company.

To help you choose the model that suits you, this article will break down common managed IT service models, how they work, and factors to consider when deciding which model is best for your business.

What Are Managed IT Service Models?

Before you choose a model, it's essential to understand what they are. Managed IT service models are structured ways for an MSP to support your technology and needs. Models differ based on the level of responsibility the provider assumes, the pricing of services, and the degree of collaboration with your team.

For example, some businesses prefer to hand over IT management completely to prevent headaches and maximize the budget allocated to the MSP. Others require additional support or specialized expertise, so they select models that augment their business's existing IT team.

Understanding these models makes it easier to choose an option that fits your needs. There are different criteria to consider, but the first thing business owners should contemplate is the actual managed IT service model.

Common Types of Managed IT Service Models

There are numerous managed IT service types, as MSPs are flexible and offer a mix of the standard service models. However, the four major service types are typically the most common models and the ones you are likely to choose from. These include fully managed and co-managed IT services, as well as break/fix, per-user, and per-device models.

Fully Managed IT Services

Fully managed IT services are the most hands-off option for businesses, as the MSP takes care of your entire IT department. This model means the MSP is your IT team, handling day-to-day support, maintenance, and security. You can also expect the MSP to monitor your system and assist users with any issues that arise.

This managed IT service model is ideal for small to medium-sized businesses that lack an internal IT team or prefer not to manage their own technology. Fully managed services also ensure predictable monthly costs and a single provider that handles the entire department.

Co-Managed IT Services

Co-managed IT services are about partnership. Instead of being your IT department, the MSP works alongside your internal IT team to share the workload. Splitting the tasks between them is up to your agreement. 

Still, generally, the internal team handles strategy and day-to-day operations. At the same time, the MSP comes in with advanced tools or provides extra hands during busy times.

This model works well for growing companies that want to keep control of their IT but need additional support or specialized skills. Co-managed IT services are flexible and designed to adapt to your business needs.

Break-fix Model

The break-fix model is the most traditional and reactive form of IT support. When something breaks, you call and pay a provider to fix the problem. This also means that there's no ongoing monitoring or maintenance, so issues are only handled after they occur.

Breal-fix models are cheaper upfront, but they lead to unexpected costs and downtime because problems aren't prevented. This means they become bigger and more expensive issues over time. Break-fix models are ideal for very small businesses with minimal IT support needs.

Per-User vs Per-Device Models

Per-user and per-device models are how managed IT services are priced, rather than how the services are delivered. A per-user model means you pay a flat monthly fee for each employee and the devices they use. This model is ideal for remote or hybrid teams, while making budgeting easier as your team grows.

On the other hand, per-device models base their price on the number and type of devices managed. This approach is better for shared-device environments, such as manufacturing floors, warehouses, or retail locations.

Choosing the Right Managed IT Service Model

With all of that said, the right managed IT service model still depends on your business needs and not your budget. Smaller companies or those without an in-house IT team are likely to benefit more from fully managed services. In contrast, organizations with an established IT team may derive greater benefits from a co-managed approach.

While you shouldn't base your decision on the expense, you should still consider how predictable you want your costs to be. The fixed monthly pricing simplifies forecasting. 

Also assess security and compliance requirements, as regulated industries often require proactive monitoring and advanced security tools.

Managed IT Services vs In-House IT

When deciding between availing managed IT services or sticking with an in-house IT team, consider the following:

While managed IT services offer better services, you’ll definitely not have the same control when hiring an in-house IT team. Due to this, some businesses adopt a hybrid or co-managed approach to strike a balance between control and efficiency.

FAQs About Managed IT Service Models

Below are frequently asked questions regarding managed IT service models:

Are managed IT services only for small businesses?

While small businesses are typically the ones that utilize managed IT services, many mid-sized and enterprise organizations still rely on co-managed models to support their internal IT teams.

Can I switch to a different managed IT service model later?

Yes, you can switch your managed IT service model down the line, but it takes time. As such, it's advised to choose a flexible and scalable option to make future changes easier.

Do managed IT services include cybersecurity?

Most MSPs include some level of security, but the exact coverage depends on the provider and service agreement.

Is the break-fix model still used today?

The break-fix model is still used today, but it's becoming less common since businesses prioritize uptime, security, and predictable costs.