Part 3: Paying too much or too little – Pricing (Deep Dive)

Part 3: Pricing Structures – Per Device, Per User, and More (Deeper Dive)

When evaluating managed IT and cybersecurity services, you’ll encounter a few common pricing structures:

• Per Device pricing – Charged for each device (workstation, server, etc.) managed.
• Per User pricing – Charged for each end-user, often covering all that user’s devices.
• Per Location pricing – Fees related to an office/location (e.g., managing a network firewall or on-site support).
• Per Brand (flat or bundled) – Some services are priced at an organizational or brand level (for example, overall network security monitoring, or a package that covers your whole company’s IT for one fee).

Each model has its logic. Let’s break them down, including typical cost ranges and what affects the price:

Per Device Pricing

Per-Device pricing means the MSP charges a set fee for each device they manage. A “device” could be a desktop PC, laptop, server, or sometimes network equipment like firewalls or switches (though those might also fall under per-location).

• Workstations and servers, you might see prices ranging from around $25 up to $275+ per device per month. Why such a big range? It depends on what’s included for that device and the type of device.
  • At the lower end (~$15-$50/device), the plan might only include basic monitoring or antivirus software on the device with limited support. For example, some cloud-based security software licenses are inexpensive, but they don’t include hands-on labor.
  • At the higher end ($50-$100+ per device), the provider might include comprehensive management: advanced security software, regular maintenance, unlimited troubleshooting support for any issues on that device, backups, patching of not just the operating system but also common third-party apps, etc.
  • If the device is a server or mission-critical system, costs might be higher than a standard PC because of the additional responsibility (e.g., server management could be $250+ per server in some cases as it may include backup management, advanced security, and high availability measures).

• Network Managed and Unmanaged Devices (Switches, Firewalls, Wireless Access Points, Printers/Scanners), Managed and unmanaged network devices—including switches, firewalls, wireless access points, and printers/scanners—typically range from $125 to $250 per flat network. A flat network refers to a simple, single-location setup with minimal complexity and a limited number of devices.As network complexity increases—such as multiple locations, higher device counts, or segmented VLANs—management costs rise accordingly. Pricing is generally based on three key factors:
  • Number of devices
  • Number of locations
  • Network segmentation (e.g., VLANs)
   

  Additionally, some service providers may charge extra for managing cloud-based portals associated with network equipment. These portals often include features such as automated backups, firmware updates, and remote configuration. Cloud management fees can vary widely. Some providers include this in their network management fees while others may add to standard management fees. Advanced devices (e.g., firewalls with enhanced security features): $100-$150+ per device/month and Basic devices (e.g., wireless access points): $15-50+ per device/month

• Mobile devices (smartphones, tablets, IoT) often cost less than full computers to cover. As noted, these might be in the $15-$35 per device range for management. Mobile device management typically focuses on security (like remote wipe, device encryption, threat protection) and maybe some support for email setup, etc. They inherently carry a bit less risk than a full laptop, so they are cheaper to manage.

Pros of Per-Device: It’s straightforward and scalable by equipment count. If you have lots of shared devices or a fluctuating number of hardware units, you pay exactly by usage.

Cons of Per-Device: It doesn’t directly account for how many users share those devices or use multiple devices. Organizations with excess devices will pay additional for security and support. Devices such as digital signage will have the same billable cost as a standard end user device even through they require minimal support.

Per User Pricing

In Per-User pricing, you are billed for each user (employee) in your organization that is being supported. This can often include devices that the end user is using as part of this per user cost. For example, an MSP that includes a full suite of top-tier cybersecurity software (which they pay for on your behalf) and a dedicated security operations team monitoring alerts will charge more per user than one who just uses the built-in basic antivirus and no live monitoring.

Typical prices can range roughly $50 to $300+ per user per month. Why the wide range? It again comes down to what’s included for that user:

• Basic end-user support at the low end (~$50-$100/user): Could include helpdesk support during business hours for that user’s needs and maybe basic device monitoring. Perhaps limited or no cybersecurity beyond standard antivirus.
• Comprehensive user support at the higher end ($100-$200/user) without device coverage: Likely includes 24/7 IT support availability, advanced security (like endpoint detection & response on all devices, dark web monitoring for their accounts, maybe identity theft protection services, etc.), cloud backup of the user’s files (often unlimited or a generous amount), and possibly certain productivity or security software licenses (e.g., a password manager, VPN service, enhanced email spam filtering or encryption tools).
• All inclusive with device coverage ($200-$300+): The more that’s bundled into the per-user fee (and the more high-end the tools), the higher the cost. This could include all devices for a user up to a specific quantity (2 devices as a max is common). This typically includes comprehensive 24/7 support and top rated security solutions.

Questions to ask for per-user plans:

• Does this fee include 24/7 support or only 9-5?
• What exactly happens if the user’s device breaks or gets infected – is remediation included fully?
• Are things like anti-virus, anti-malware, firewall software included in that price, or charged separately?
• Is cloud backup for user data included (and if so, how much storage)?
• Do all the user’s devices count as one fee, and are there any limits (e.g., if a user has 4 devices, is that all covered)? Typically, per-user covers 1 computer and 1 mobile device or similar, but it’s good to clarify.

Pros of Per-User: Simplicity in organizations where employees use multiple devices – one cost covers that person completely. Also, it directly ties IT cost to headcount, which can be simpler for budgeting per department or as the company scales its workforce.

Cons of Per-User: If you have lots of devices that aren’t assigned to specific people (like shared kiosks or a lab of PCs), this model might not account for them cleanly (some MSPs would charge for them separately as “device-only” fees). Also, very low-utilization users (say, a temp staff or someone who uses only a single device occasionally) would still incur the full fee, which might feel inefficient unless the MSP offers some fractional pricing for part-timers. Tracking by user only can lead to billing transparency concerns as well as unnecessary environment complexity and bloat since there are no incentives to run a clean environment from a cost standpoint.

Per Location Pricing

Per-location fees are typically associated with managing the network and infrastructure at a specific site:

• For example, a business office location might have a managed firewall, network switches, Wi-Fi access points, etc. An MSP might charge a flat monthly fee to manage all that network equipment and perhaps include some on-site support visits for that location.
• Sometimes there isn’t a specific recurring “location fee” – instead, the devices at that location (like the firewall) are counted individually or charged under a separate category. But some providers do bundle it: e.g., “Office network support – $X per month includes your firewall management and unlimited on-site support when needed”.
• If you see annual firewall licensing or subscription costs, that’s a related expense. Many business-grade firewalls require a yearly security subscription. An MSP might roll that into your plan or pass it through at cost. If not included, expect a periodic bill for those licenses.

For small businesses with a single office, you might not notice a separate location cost beyond the devices. For larger companies with multiple sites, some MSPs charge per site for the additional overhead of coordinating support at each location.

On-site support: If you require technicians to come on-site regularly, location-based pricing might include a certain number of visits or a full-time/part-time on-site technician. That usually increases the cost significantly (onsite support can be 10-20% more expensive than remote-only support, due to travel and time).

Work-from-Home (WFH) considerations: If your team is remote, you likely don’t need a physical firewall per home. Each user’s device security (endpoint protection) serves as the main defense. However, if remote users need to access resources in a central office or cloud securely, solutions like SASE (Secure Access Service Edge) or ZTNA (Zero Trust Network Access) might be used. These are modern secure networking solutions to link remote users into the company network safely. They might be included in per-user costs or added as a separate service. In any case, pure remote organizations may have near-zero “per location” costs (aside from maybe a cloud firewall/service), whereas organizations with offices will have network equipment to manage.

Per Organization (Brand Reputation + Domain Security)

Finally, some services are priced at an organization-wide level rather than per user or device. This could be in addition to the per-user/device fees, or for companies with very simple needs, a provider might just quote one flat fee covering the whole company’s basics.

One example is organizational cybersecurity or compliance monitoring:

• Many MSPs include things like dark web monitoring for your company’s domain (watching if any employee credentials show up in data breaches), email security policies (like ensuring your domain has SPF/DKIM/DMARC properly setup to prevent spoofing), and general oversight of your company’s security posture.
• Some might bundle this into every user’s cost. Others offer it as an add-on service at the company level. If broken out, such a service might cost, say, $75 to $200 per month for the whole organization’s domain protection and monitoring. Additional brands or domains are often less and charged as addons say at $25 to $50 per month per additional domain.
• This could also include periodic security awareness training for staff, simulated phishing tests, or policy development – offerings vary.

Another example: a virtual CIO service (strategic consulting on IT roadmap) or vCISO (virtual Chief Information Security Officer) might be a fixed monthly retainer not tied to user count.

Summary of Pricing Models: Each pricing structure (per device, per user, per site, or flat organization fee) is just a way to break down the cost. Many modern IT providers have gravitated toward per user as businesses now often assign multiple devices per person. But some mix-and-match for billing transparency. Always look not just at the model, but at what’s included. A low per-device price that doesn’t include critical services could end up more costly if you have to add things later. Conversely, a higher per-user price might actually save money overall if it’s truly all-inclusive.

Bundled Packages vs. Line-Item Pricing

When you receive proposals from IT providers, you might notice some give you a single bundled quote (“One flat fee covers everything”), while others provide a detailed line-item breakdown of each component (with separate prices for software licenses, backups, support, etc.). This is a difference in pricing presentation and philosophy:

• Bundled Pricing (All-Inclusive Package): You get one monthly price, often per user or per device, that claims to cover the entire managed IT service. For example, “$150 per user per month for our Complete IT plan – includes support, security, backups, etc.” This is simple and easy to understand at a high level.
  • Advantage: Simplicity and convenience. It’s like an all-inclusive resort – you pay one price and shouldn’t have to worry about extras (in theory).
  • Potential Drawback: It may be hard to tell exactly what services or software are included versus what might be considered out-of-scope. If it’s not clearly detailed, there could be misunderstandings. Also, if you have minimal needs in one area, you’re still paying for the whole package.
• Line-Item Pricing (Unbundled): The provider might list out each service or category with a price. For example: helpdesk support $X, security software $Y, backups $Z, etc., adding up to your total. Or they might show a per-user fee broken down into components.
  • Advantage: Transparency. You can see where the money goes, and it’s clearer if you want to compare two proposals line-by-line. You can identify if one plan, for instance, doesn’t include backup by noting its absence on the list.
  • Potential Drawback: It can be overwhelming or confusing for non-technical managers. And it might invite nitpicking (“do we really need this line item…?”) which could lead to a weaker setup if removed. Also, an unscrupulous vendor could low-ball the visible items and hide needed ones (though any reputable firm should avoid this).

Which is better? It really depends on your preference. The key is to ensure everything important is covered one way or another:

• If it’s bundled, ask for a list of what’s included (even if there’s no individual price on each). A good provider will happily enumerate the components of their service.
• If it’s line-item, check for any notable missing pieces or any “optional” items that really should be mandatory (like security or backups). Make sure you’re comparing apples to apples between providers. One may include a premium security tool in their base price while another lists it as an add-on – that affects the overall value.

Some MSPs might offer add-on bundles or tiers: e.g., a basic vs premium package, or extra-cost services like project work, hardware procurement, etc. Clarify what’s optional and what’s standard. Bundling and simplicity vs clarity and detail is often a trade-off. The trend is towards simplification (bundled user-based pricing) because it’s easier for clients to budget. Just remain vigilant that in simplicity, nothing critical is left out or “assumed.”

Discounts and Contract Terms

Another factor in pricing: volume and commitment.

• Term Length Discounts: Many IT service providers will offer a better rate if you commit to a longer term contract. For example, signing a 1-year or multi-year agreement might lock in a discount vs a month-to-month arrangement. The trade-off is flexibility; you usually can’t cancel early without penalty if you commit. But if you’re comfortable with a provider, a longer contract can yield savings or even added services.
• Volume Discounts: If you have a larger number of users or devices, you might see a lower per-unit price. For instance, supporting 100 users might have a lower rate per user than supporting 10 users, because of economies of scale for the MSP. Not all providers scale pricing this way, but many will negotiate on large deals.
• Non-Profit/Education: Some MSPs have special rates if you are a non-profit or educational institution, due to discounts they get from software vendors that they can pass on. This might not apply to a normal business environment, but worth noting if relevant to you.
• Seasonal Flexibility: If your user count fluctuates (like seasonal staff), ask if pricing can flex up/down accordingly or if it’s fixed. Some providers are flexible with monthly user counts; others may do quarterly true-ups, etc.

Important: Always read the contract terms regarding price increases. It’s common to include an annual increase (e.g., 3-5% per year or “index to inflation”) in longer contracts. This is understandable (their costs go up over time, too), but it should be reasonable and transparent. Also check for any auto-renewal clauses and how far in advance you need to give notice if you choose not to renew.

Learn More:

• Part 1: We compare Break-Fix vs Flat-Rate (Managed) support models and why proactive flat-rate plans often deliver better value.
• Part 2: We break down pricing per device, per user, per location, and per organization (domain), including typical cost ranges and what features influence those prices.
• Part 3: Deeper dive into IT pricing models where we discuss how bundling vs. line-item pricing works, and how contract terms or volume can affect your rates.
• Part 4: We cover the special case of compliance services (e.g. regulatory or security compliance support) – why they can be costly and what they include.
• Part 5: Finally, we provide tips on evaluating IT service providers – what to look for in their reputation, transparency, and service offerings – so you know you’re getting a fair deal for the price.
• Bonus: Is a ball park estimate good enough?