Per-user, per-device, tiered, and all-inclusive MSP pricing models explained so you can compare quotes and budget for managed IT and security.
Managed IT and security proposals can be difficult to compare. Two providers may quote similar monthly figures, yet the scope behind those numbers can vary dramatically. This article explains the most common MSP pricing models, highlights the trade-offs between predictability and flexibility, and offers a framework you can use to compare quotes objectively so you can make a confident decision. Why MSP Pricing Looks Confusing Two proposals with similar monthly prices can mean very different things. One may include advanced security tooling, backup, and strategic support; the other may only cover basic helpdesk services. The difference is not always obvious from a summary page or a line-item total, which is why understanding what sits behind the price matters more than the price itself. Before focusing on numbers, clarify scope and outcomes. Start by asking a few pointed questions. Which services are included in the base fee, and which ones trigger additional charges? What security and backup tools come bundled, versus those billed as add-ons? How does the provider handle projects, hardware procurement, and after-hours support? And what assumptions about your environment -- user count, device mix, compliance requirements -- is the quote based on? Getting clear answers to these questions early in the process will save you from comparing apples to oranges. The principles in this guide apply to any MSP you're evaluating. Common MSP Pricing Models Most managed service providers use one or a combination of the models below. Understanding each makes it easier to normalize quotes and ask the right follow-up questions during the evaluation process. Per-user With per-user pricing, the provider charges a flat fee for each active user, typically bundling device support and core applications into that single rate. This model maps naturally to headcount, making budgeting straightforward. It tends to work well for firms where