Managed IT services let organizations outsource IT tasks to a vendor on a contracted or subscription basis. The vendor will then handle the company's IT-related concerns, essentially taking charge of that department.
Many small businesses rely on technology. Whether it's their computers, Wi-Fi, email, phones, apps, and everything in between. And when something breaks? Productivity takes a hit, which feels heavier for growing companies. When this happens, you're spending your day troubleshooting instead of running your business.
Cases like this show a slightly outdated IT approach called the "break-fix." Something breaks? Call someone to fix it, pay the bill, and pray it doesn't happen again. It was once the primary method for resolving IT-related issues in small businesses. The approach typically works until it doesn't.
This is mainly the reason why Small and Medium-sized Businesses (SMBs) are relying more on managed IT Services. Instead of waiting for problems to arise, a Managed Service Provider (MSP) helps keep your systems and technologies healthy at all times. They monitor your network 24/7, keep devices up to date, and safeguard your data. MSPs are your partners.
Imagine it like this. The old break-fix approach is akin to calling for an ambulance in the event of an emergency. Meanwhile, managed IT Services is like having a doctor check up on your health on a daily basis. Oh, and the doctor is significantly cheaper than the ambulance in this scenario.
In this guide, we'll break down everything there is to know about managed IT and why so many small businesses are making the switch.
As mentioned, small businesses had no choice but to rely on the traditional break-fix IT approach, where help is only called for when something goes wrong.
With traditional break-fix IT, you pay a certain amount depending on the problem. While it sounds cheaper up front, there are some glaring issues with this model:
The second point is the most important thing to consider, as it's partly why break-fix is more expensive in the long run, but we'll get to that later.
On the other hand, managed IT services monitor your devices and systems 24/7 to prevent issues from occurring in the first place. They handle updates, backups, security, and other essential tasks, keeping your business running smoothly.
With managed IT, you also pay a predictable monthly fee, rather than being billed based on the severity of the issue.
Here's a quick comparison:
|
Aspect |
Traditional IT (Break-Fix) |
Managed IT |
|
Cost |
Unpredictable, per incident |
Predictable monthly fee |
|
Timing |
After something breaks |
Problems prevented early |
|
Downtime |
Higher risk |
Much lower |
|
Support |
Limited |
Full, proactive coverage |
For small businesses that can't afford even the slightest of downtimes, Managed IT will pay for itself quickly. After all, why wait until your car breaks down when you can get regular maintenance to prevent breakdowns in the first place?
It goes without saying that business needs differ from company to company, especially in terms of IT support. What your business prioritizes is vastly different from what others consider important. One of the great things about managed IT is its flexibility. You can choose the model that fits your needs and budget, while also allowing for customization.
A fully managed IT plan means your MSP becomes your entire IT department. They'll handle everything from helpdesk support, security, antivirus, backups, and a whole lot more. It offers comprehensive coverage and is slightly less expensive than maintaining a large in-house team.
In addition, you're also getting access to advanced tools and specialized skills.
Of course, there are challenges with this approach. For one, you won't have direct control over IT decisions. In addition, it's also dependent on vendor reliability and service level agreements (SLAs)
Suppose you already have an in-house IT person or team. In that case, you can avail of a co-managed IT service to provide your existing team with internal support. This option is suitable if your IT person is overloaded or if you require access to specialized tools or expertise that your current team may not have.
And don't worry about your internal IT people, they'll still do what they do best, but they won't have to do everything this time.
While convenient, co-managed IT is riskier. Firstly, this setup necessitates clear communication and a well-defined role to maximize efficiency. If responsibilities aren't well-defined, you may end up with overlaps and redundancy.
Small businesses often lack the same budget allocation for their IT departments, making the prospect of managed IT a daunting proposition.
Thankfully, some MSPs offer customized or hybrid models. This means they can provide the help you need, regardless of the area. If you only need help with cybersecurity, monitoring, or a helpdesk, you can choose which services to utilize.
A hybrid model provides you with the flexibility to determine what you want your MSP to handle. This approach requires careful planning and negotiation, as it results in higher costs compared to other methods due to the necessary customization.
As mentioned, the right model depends on your business needs, budget, internal IT capabilities, and the level of control required. If you're a small business, you'll benefit from a fully outsourced IT solution, as it reduces overhead. For mid-sized companies, co-managed IT may be the ideal solution, as it teeters a fine line between control and external expertise.
Regardless of the setup, the goal is to give your business the right level of support without overspending. Choose your plan wisely, consider all options, and assess your IT needs.
|
Service Model |
Pros |
Cons |
Best For |
|
Fully Managed IT |
|
|
Businesses without an IT team or those wanting to outsource all IT functions |
|
Co-Managed IT |
|
|
Businesses with a small or overloaded IT team |
|
Customized |
|
|
Small businesses with specific IT requirements |
Once you start exploring managed IT, you may notice that some providers offer different service levels or tiers. Regardless of what they are called, these levels are similar to choosing a phone plan, where you select the support that matches your needs and budget. Here's a simple breakdown on how these tiers work and what they usually offer.
The basic level, or lowest tier, is usually the "just enough to stay safe" option. It's ideal for small businesses that are just starting to explore managed IT. Level 1 services typically involve monitoring a business's IT systems to identify potential problems, while providing basic support such as antivirus management.
This plan's goal is to prevent problems from escalating and avoid downtime, which could be fatal hours for SMBs.
The standard level is typically the most popular due to offering more services than basic plans while being less expensive than premium plans. This tier is ideal for businesses that rely heavily on their technology and require a plan that offers a more proactive approach to problem-solving.
Like the basic level, standard plans provide monitoring services, as well as problem resolution services, including help desk support, remote support, and on-site support.
This level offers businesses a more comprehensive IT support service to minimize the risk of IT-related disruptions.
As the name suggests, the premium level has the most coverage and is subsequently the most expensive. This level covers everything your business needs, from every angle. It's a full-service IT provider that offers services such as system design, implementation, and management, as well as cloud-based services, all of which are covered by the basic and standard levels.
The premium tier also means you can be hands-off in this part of your business, allowing you to focus your time and attention on other matters.
Premium-level plans offer businesses a comprehensive IT management solution, ensuring the highest level of uptime and security.
|
Service Level |
Pro |
Con |
Best For |
|
Basic Level |
Affordable essential protection |
Limited coverage and support |
Small businesses new to managed IT |
|
Standard Level |
Balanced, proactive support |
Higher cost than basic plans |
Businesses relying heavily on technology |
|
Premium Level |
Full-service, hands-off IT management |
Most expensive option |
Businesses needing complete IT outsourcing |
Managed IT makes a world of difference, especially for small businesses. It's not just convenient; managed IT is also an investment that helps growing companies generate more revenue by minimizing downtime, which subsequently improves efficiency and productivity. Here are the biggest ways managed IT helps SMBs:
The most significant benefit of managed IT is the predictable monthly pricing. You're likely paying the same amount throughout your agreement, as opposed to keeping an in-house IT team that's susceptible to additional costs such as emergency repairs and staffing expenses. With managed IT, you can avoid costs associated with hiring, training, and retaining employees.
This gives you financial clarity and control, making it easier to allocate resources where they are needed most.
Managed Services typically include continuous monitoring and support that ensure issues are detected and addressed early. Network downtime can be critical for small businesses, as it could cost them hundreds or thousands of dollars per hour.
Instead of waiting for something to break, an MSP uses proactive monitoring to maintain your systems 24/7, minimizing disruptions.
Hiring a full-time IT specialist is expensive. Hiring a whole team? Pretty much impossible for starting companies. Getting help from MSPs allows you to access certified experts and industry specialists without incurring payroll costs.
A reliable managed service partner provides a team of experts skilled in various areas, including cybersecurity and IT project management.
The nature of small businesses is scarily volatile. You can go through a rough couple of months or experience growth like the industry has never seen before.
Regardless of the situation, MSPs are flexible and can adapt to your changing needs, adjusting their services to match your requirements.
With cyberattacks becoming increasingly prevalent, cybersecurity is more crucial than ever. In fact, SMBs are frequent targets of cyberattacks.
Thankfully, a strong MSP keeps you protected and gives you confidence that your data and that of your customers are safe. Specifically, Managed IT helps you stay ahead with:
Small businesses typically miss the signs that it's time to switch to managed IT. This results in downtime and ultimately leads to a loss of revenue. SO, how do you recognize when it's time to make the much-needed switch? Here are a few signs you need to recognize right away.
If these sound familiar, even just a few, managed IT is a game-changer. You'll immediately gain stability and expert guidance that yields real ROI.
However, the most crucial part of getting managed IT is that it gives you peace of mind. Instead of worrying about technological failures, you get to focus on what you do best: running your business.
The point has been hammered home, but managed IT offers predictable and straightforward pricing. You're not guessing how much the next tech disaster will cost. You know exactly what you're paying each month. Most MSPs use one of three pricing models (or a mix of them), depending on what suits your business needs.
There is no concrete answer to how much managed IT services cost. The final bill depends on several factors. However, here's how pricing typically works.
This is the most straightforward and common method for pricing managed IT services. You pay a set fee for each person in your organization who uses the services. This model is ideal for small businesses because it aligns with their operational needs. If you're a growing team, you'd rather avail this model because:
Some MSPs charge based on the number of devices they manage, such as laptops, desktops, servers, and mobile devices. This plan gives you flexibility if your work person isn't "one person = one computer." You want to consider this model if:
Lastly, flat-rate pricing is considered the all-inclusive approach. You pay a fixed monthly fee, and your MSP covers everything in your plan, including support, monitoring, updates, security, etc. Flat-rate pricing is ideal for businesses that want predictable budgeting and consistent costs.
Add-ons and extras can also increase the cost of your plan. Of course, this means extra coverage and long-term value. Depending on your needs, you may see optional add-ons such as:
|
Pricing Level |
Pro |
Con |
Best For |
|
Per-User Pricing |
Predictable and scales easily as you hire |
Can become expensive as headcount grows |
Small businesses with a growing team and 1:1 user-to-device setups |
|
Per-Device Pricing |
Flexible for environments with shared devices or many types of equipment |
Costs can be unpredictable if device count fluctuates |
Teams with shared devices or industries with many physical assets |
|
Flat-Rate Pricing |
Simple, predictable monthly cost covering all services |
Monthly fee is typically higher due to all-inclusive coverage |
Businesses that want consistent budgeting and comprehensive support |
Managed IT's ROI is not just about the money. Services like these provide priceless returns, including reduced headaches, improved uptime, and increased efficiency and productivity.
However, it also saves a significant amount of money. Here's a breakdown of the biggest returns SMBs see:
Managed IT monitors and maintains your system 24/7, which means things run smoothly. Reducing downtime by an hour or two a month saves thousands in lost productivity. In fact, many businesses report:
These improvements may seem minor, but they accumulate and lead to increased productivity.
Emergency costs are the bane of small businesses, as you're dedicating a portion of revenue to something that could've been prevented. It's part of the reason why break-fix IT is becoming a relic of the past, as every problem becomes a head-scratching surprise expense.
With managed IT, those emergencies become less frequent because experts identify and address issues early. Preventing one major outage or ransomware event can pay for an entire year of service.
Security tools, monitoring software, backup systems, and experienced IT personnel are needed for small businesses. They protect sensitive data and your business. However, these things are expensive individually, and most startup companies can't afford two of them, let alone the entire package.
Through an MSP, you get all of them for a fraction of the cost of hiring your own team.
Technology shouldn't slow down your business. It should be the driving force towards better success. Managed IT offers a more innovative approach to managing your technology. One that's cost-effective, scalable, and designed to promote productivity.
Instead of dealing with surprise outages and nonstop troubleshooting, you pay for a partner who keeps everything running smoothly behind the scenes. From monitoring and maintenance to security and support, managed IT services provide your business with the stability it needs for growth.
Suppose you're ready to modernize your IT operations and provide your team with the reliable technology they deserve. In that case, it might be time to export managed IT.
Why piece together different IT vendors when you can have everything handled by Melbourne's most trusted IT provider? Our solutions offer more than just support; we provide a comprehensive approach that covers your business's technological needs.
Our managed service is simple. In fact, you only need to partake in three steps for peace of mind.
First, we begin with a consultation to gain a deeper understanding of your business, current IT setup, and specific IT pain points. Afterward, we design an efficient and effective managed IT service plan tailored to your needs. Lastly, our internal IT team will get to work while you're free to focus on your business.
Get started and give us a call today. A 15-minute chat can transform your future into one with fewer worries and more profit!