MSP pricing — how much to charge for proactive managed services — has always been a hotly debated topic. Now, some answers: Managed services providers (MSPs), on average, are charging about $52 per desktop and $216 per server for monthly support and maintenance. The stats are from a Kaseya MSP Global Pricing Survey that I (finally) spotted. Here’s a closer look at the numbers.
Admittedly, I’m a little late to the game on this one. The survey results are about a year old. But they’re available for registered download on Kaseya’s website. Among the stats worth noting:
- More than 435 MSPs participated in Kaseya’s global survey.
- Break-fix resellers that sold block-hour support charge about $90 per hour, on average. The figure was significantly higher in the U.S. ($119) and Australia ($122), among other areas.
- MSPs charge $52 per desktop, on average, for ongoing desktop support and maintenance per month. The figure was considerably higher in Canada ($90, though only 17 MSPs were represented) and the United States ($65 on average from 234 MSP responses).
- MSPs charge $156 per server, on average, for ongoing server support and maintenance per month. MSPs in New Zealand ($278, based on 11 MSP responses), the United States ($216) and Australia ($211, based on 55 MSP responses) charged the highest feed.
I realize some pricing trends may have changed significantly since the survey results were published in Q1 2011. In recent months, I’ve increasingly heard about all-in per-user pricing (rather than per-desktop pricing) that helps MSPs to generate as much as $100 to $150 per user per month. Also, I’m curious to how the pricing statistics would change based on vertical markets served.
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Tags: Kaseya | Managed Services Provider Pricing | MSP pricing | PC Support Pricing | Server Support Pricing
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Take a look at our 
We are currently switching to a per user model. This reflects the change in dynamics with Cloud Computing. Your pricing is correct in this regard. However, if you don’t price correctly this model will not work.
Hayden, building on your comments… I hear a lot of MSPs focusing on the “user experience” rather than “device maintenance.” Then, applying the right price to that user experience.
-jp
The Kaseya pricing report is helpful, but it has a few shortcomings.
First of all, it is great that a vendor like Kaseya is spending time and money to research the pricing environment. Data is king after all.
However, the challenge with these survey results is they lack a sufficient amount of detail on the features and service levels of the offerings covered in the survey. This is a service business and the service level for the price is what really matters. What does “desktop support” mean in fact – is there a 24×7 help desk with that or is it just during business hours? What is included with desktop support – security, proactive monitoring, bare metal backup? Who knows? On the server support, the same questions can be asked. Does the server support come with BDR or just image backup or tape backup or what?
Kaseya is on the right track here… but they need to go a few levels deeper with the research.
Ted Hulsy
VP of Marketing
eFolder
@TedseFolder
I agree with Ted. It’s truly hard to say what is included in the services that pricing was received for, and how they compare with each other.
Our pricing does vary based on what we are doing for each client. It changes, and it’s not always easy to define. Per user works for some, per device for others, but the goal is always to provide the best level of service that is possible. Ideally we want the service to be great, and for our clients to only associate us with positive things (though that isn’t always possible).
Andras
On the one hand it would be great to see more detailed research. But on the other hand don’t miss the big picture here. It goes something like this:
The managed services market has always worried about “some” aspiring MSPs introducing crazy, ISP-like pricing ($9.99/month). Kaseya’s data points suggest that its MSP partner base hasn’t gone down that route. Just a hunch, but I guess many other RMM and IT management software companies could collect similar data from their partners/customers. Also, coaching organizations like TruMethods have anecdotal examples of MSPs charging $100 to $150 per user per month.
But market risks remain. The 2112 Group, led by Larry Walsh, recently published a report about poor pricing practices in the MSP market.
-jp
All, thanks for the comments. We do acknowledge that the data is a bit “old,” but we get asked for it all the time to help you with trending analysis, and thought this would be a good platform to share it again. Our 2012 survey is underway so stay tuned for an update in the early summer. And coming soon, survey results from our users on best practices for pricing mobile-as-a-service. We will share and look forward to your feedback on those, too.
David Castro
Kaseya, Marketing