How Much Do IT Services Cost? Managed IT Service Pricing Explained 

By

Ryan Lakin

Updated August 2025. Originally published April 2024.

Are you paying too much for IT support? Do you know how to choose a managed service provider (MSP)? If you’re looking for clear answers on managed IT services pricing, you are not alone. While the benefits of IT managed services are numerous, many businesses feel left in the dark when trying to compare MSPs—especially when prices are rarely listed upfront. While every fully managed and co-managed IT service provider is different, here’s a quick pricing snapshot to help you set expectations: 

Quick Pricing Snapshot for 2025: 

 

    • Standard managed IT services: $150–$250 per user/month 

 

    • With advanced security & consulting: $150 to $400 per hour or around $300 per user/month 

 

    • Onboarding fees: Typically equal to 1-2 months of service, plus an additional percentage 

 

    • Monthly range for a 35-person organization: $3,500–$5,500 

Want to understand why pricing varies and what to look for in an MSP? Let’s dig deeper with IronEdge’s definitive guide for managed IT services provider pricing, tailored to the needs of small and mid-sized businesses. 

Want a quick overview before you read on? Watch our video discussion on MSP pricing, where IronEdge team members share industry insights. While it’s outdated in terms of dollar figures, it still provides helpful context on what is typically included in managed IT services and why providers often guard their pricing. 

If you have ever tried to get a straightforward answer on how much you should spend on IT support or how much managed IT services cost, you’ve probably ended up more frustrated than informed. You’re not alone! Many managed IT service providers avoid posting pricing publicly, and most won’t offer numbers over the phone. 

Why? The truth is: MSPs are afraid to divulge information to their competitors (secret shoppers) or lose a lead before they have a chance to explain their value proposition.  

At IronEdge, we believe in transparency. This guide provides a glimpse behind the curtain of the managed IT industry, enabling you to make a more informed decision about your service provider. Together, we’ll examine the core questions that will help you invest in the right technology partner, including: 

 

    • What are the different types of managed IT service providers? 

 

    • Why do MSPs guard their pricing? 

 

    • What is the going rate for IT services? 

 

    • Why pay an onboarding fee, and how much do MSPs charge for onboarding? 

 

    • What should your onboarding experience include? 

 

    • Exceptional customer experiences 

 

    • Maximized IT security 

 

    • Strategic IT planning 

 

    • Questions to ask a managed service provider. 

What Are the Different Types of Managed IT Service Providers? 

The dirty secret is that most mature MSPs charge approximately the same amount per month to their clients once all expenses are factored in.  So why keep pricing under wraps? Let’s explore the industry a bit to get to the answer.  The industry has four distinct types of MSPs: 

Trunk Slammers

Small companies with 2–4 people, no processes or transparent IT MSP pricing, and a handful of clients. They may utilize the same tools as mature organizations and appear like a mature MSP due to cloud-based tools and marketing, but they fall short in terms of experience, follow-through, and ability to grow over time. These teams are usually technical but lack business direction. 

Value MSPs

Small companies with 8–15 people, reactive IT support, and clients interested in keeping IT managed service costs as low as possible. These teams provide a very inexpensive service, which includes “break-fix” services and hourly options. Typically, they have a limited toolset and lack business experience in technology consulting. Value MSPs often lack extensive internal processes or checks and balances in place for personnel and security. 

Bolt-on MSPs

Usually, very large organizations. These companies have a core business competency that is not IT services, such as providing phone systems, copier rentals, insurance sales, accounting services, or audio/video solutions. These companies aim to establish a new recurring revenue stream by offering managed IT services. However, most do not have comparable managed services, IT pricing that’s tailored to your operation, and are not equipped to manage technology for other organizations the way a mature MSP does. 

Mature MSPs

Often larger with over 50 employees, and have been in business as an MSP for over 15 years. These providers have documented managed IT service rates and processes, which include onboarding, consulting, service, security, and project management. They have distinct departments for support fulfillment, projects, purchasing, sales, and account management. Their core competency is business technology support services and strategic consulting. Typically, these MSPs offer a monthly billable subscription or service model with a holistic approach to proactive managed IT and cybersecurity solutions.  

Why Do MSPs Guard Their Pricing?

Understanding the four types of MSPs is a crucial part of understanding why providers tend to withhold public pricing.  

Mature MSPs tend to charge similar rates, so managed IT support pricing isn’t usually the competitive differentiator — service quality, fit, and strategy are. However, publicizing managed IT services rates can invite confusion when less experienced or “value” providers undercut with lower prices that don’t include the same level of service, expertise, or security. 

Trunk Slammers and Value MSPs often provide budget pricing during the sales process, but lack the internal infrastructure, security posture, and long-term support maturity of more experienced firms. Bolt-on MSPs, whose primary business isn’t IT, might use low-cost offers to attract clients, only to raise prices later or tack on additional fees. 

 

When everything is broken down, mature MSPs typically charge about the same, although some may cost more due to vertical experience, customer experience, or specific client needs. However, when it comes to answering, How much should managed IT services cost?, the reality is that it depends on precisely what services and support you need to protect your business and scale effectively. 

What Is the Going Rate for IT Services?

The going rate for managed IT services in the United States ranges from $150 to $250 per person per month.  If you include advanced security solutions and consulting, it may get as high as $250–$300 per month per person. If you have a 35-person company, you can expect a typical monthly spend of between $3,500 and $5,500, excluding licensing costs such as Microsoft 365 or VoIP. 

While pricing structures may vary among providers, the final numbers often fall within the same range. MSPs provide different billing options, including: 

 

    • Per user: A flat rate per employee supported. 

 

    • Per device: Charges based on the number of computers, servers, or endpoints. 

 

    • Flat fee: One monthly rate that covers an agreed-upon scope of services. 

Regardless, the cost of managed IT services from a mature MSP should land around the same total figure per month. If a deal looks too good to be true — it is. If a proposal seems way too high, dig into the details to understand how the proposal is structured and what you get for the money. Lowball managed IT services pricing often lacks key security features or support, while higher bids may include specialized consulting, compliance, or 24/7 response times. 

LEARN MORE AND GET STARTED

Why Pay an Onboarding Fee and How Much Do MSPs Charge for Onboarding? 

Paying an onboarding fee when getting started with a new MSP helps cover the initial setup costs associated with transitioning to their services, including assessment, planning, configuration, and deployment. 

This fee typically reflects the time, resources, and expertise required to onboard a new client effectively, ensuring a smooth and successful transition to the MSP’s managed IT services. You might expect to pay about the same cost as a month of your service plan to onboard with a mature MSP. 

Before starting IT services with pricing you authorize, the onboarding process involves various tasks such as assessing existing infrastructure, configuring systems and software, migrating data, and training staff, all of which contribute to the total onboarding cost. 

For a deeper breakdown of why pricing varies—and what might be included in those monthly fees—watch our onboarding explanation video featuring IronEdge team members Rebecca P, Rebecca G, and Dan: 

Video thumbnail for Why Pay for Onboardings?

 

Watch Webinar Now: Why Pay for Onboardings?

The exact amount may vary depending on the complexity of your IT environment, the size of your organization, and the scope of services required. IT MSP pricing for onboarding may range from several hundred to several thousand dollars, with many providers offering flat-rate or tiered packages that are adjusted to suit individual business demands. 

To gain all the benefits of IT managed services, you really don’t want your MSP to skimp on the onboarding process! A thorough onboarding ensures your MSP can hit the ground running (and that your team isn’t left scrambling). A mature MSP will make your transition as smooth and valuable as possible. 

What Should Your Onboarding Experience Include?

The onboarding process sets the tone for a successful partnership between the client and MSP. A well-structured experience should prioritize exceptional service, identify security risks early, and outline a clear roadmap for future IT growth and development.  

Below, we’ll explore three key benefits you should expect when paying for onboarding with your managed IT service provider: 

Exceptional Customer Experiences

A well-executed onboarding experience should prioritize excellent customer experiences and set you up for a successful partnership with your MSP. You should feel confident that you will receive top-level support starting with the first phone call discussing managed it services rates and lasting throughout the entire duration of the partnership. Your MSP should offer an onboarding process that empowers your team and provides you with the peace of mind knowing your network is in good hands. 

Maximized IT Security

When a client is properly onboarded, the MSP gains a solid understanding of the client’s IT systems and security posture. This part of the process is crucial as it helps the MSP identify key security concerns. When a provider joins, they should take time to understand the environment, identify security flaws, and develop a plan to remediate these and any additional issues that arise. 

Strategic IT Planning

A proper onboarding experience will paint a clear roadmap of what the client needs to focus on immediately and what to budget for in the future. With IronEdge’s managed IT services, our clients receive an IT strategy roadmap that outlines initiatives for the next 1–3 years. 

Behind the scenes of a well-vetted onboarding, technical teams visit client sites to evaluate the current IT environment before support starts. After all, there’s nothing more frustrating than partnering with a company that doesn’t know their client’s network environment and initiates discovery on the fly during the first call for help. 

When it comes down to it, a thorough, well-vetted onboarding takes time, resources, and hours of planning, not to mention the associated hard costs. The goal of a paid onboarding process is for both client and MSP to create a custom plan, establish a working relationship, and be able to hit the ground running as soon as support is needed. 

Questions to Ask a Managed Service Provider 

While most mature MSPs charge similar rates, not all providers offer the same expertise or services. When comparing managed IT support pricing, it’s important to look beyond the dollar figure and ask the right questions. 

Start by asking what’s included in their service package to help you understand the true value behind their managed IT pricing structure, such as: 

 

    • Do all our employees have direct access to the helpdesk? 

 

    • Are there limits to the number of helpdesk requests or inquiries that can be submitted? 

 

    • How do you prioritize tickets or emergency requests? 

 

    • Do you offer other services? (Note that this may be a red flag if the services are too broad.) 

 

    • What security applications are we installing on each computer? 

 

    • Do we get user security training? 

 

    • Can you modernize our equipment to support remote work capabilities? 

 

    • Can we get a breakdown of all the applications and services included in this package? 

Then ask questions about their business maturity: 

Do you require multi-factor authentication (MFA) on all of your tools that support our business? 

 

    • Do you have a change management process for all clients and your systems? 

 

    • How often do your technicians have to get certifications in the technology that I use in my business? 

 

    • What technology experience do your account managers have? 

 

    • How long have you been in business? 

 

    • Could you tell me about the history of your company? Were you always a technology services provider? 

 

    • How many people work for your firm as W-2 employees? Are they background checked? 

Ask about the business model: 

 

    • Do you offer customized managed IT services or pricing structures based on our specific business needs? 

 

    • Do you outsource any of your core services that support my business? 

 

    • Will we be working with you as a point of contact, or will someone else be assigned to our account? 

 

    • Do you have someone dedicated to account strategy?  

 

    • Is our point of contact (or account manager) also doing the technical work and wearing multiple hats? 

 

    • What are your support hours? Do you offer 24/7 response for urgent IT issues or after-hours support? 

Then ask for referrals: 

 

    • Do you have two long-time client referrals? 

 

    • Can I get a referral from a client of a similar size or in the same vertical? 

 

    • Will you provide a referral from a client where things were initially rocky but improved? 

Understanding modern managed IT service rates and choosing the right IT provider isn’t easy. Still, with the right questions, you can cut through the noise and make an informed decision—one that looks beyond the cost of managed IT services to the strategic benefits, security, and long-term support a reliable managed services provider delivers. 

Still comparing IT support pricing across MSPs? Our experts can help you break down what’s worth the cost—and what’s not.

Get a Free IT Price Analysis

Are you paying the right amount for IT services? Find out with our Free IT Price Analysis. Whether you’ve outgrown your current IT provider or are starting from scratch, IronEdge Group can help you develop an extensive, strategic IT roadmap to get your business on track. 

Here’s what you get: 

 

    • A detailed analysis of your current technology 

 

    • An evaluation of business goals and operational objectives 

 

    • A detailed, customized IT budget plan with expert recommendations 

Take the guesswork out of IT spending. Get clear, no-obligation insights into your managed services IT pricing options and technology needs. 

Call: (832) 910-9222Request Price Analysis

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