How Much Does Managed IT Cost?

You just got off the phone with an MSP. They talked for 20 minutes about "comprehensive solutions" and "strategic partnerships" but never mentioned a single number. Now you're supposed to schedule a call with their sales team to learn what they charge?

Welcome to the managed IT pricing maze.

Here's the answer most providers won't give you upfront – and how to figure out what your business should actually pay for managed IT services in St. Louis.

The Industry Benchmark

$100 to $250 Per User Per Month

Let's start with the numbers everyone dances around. Across the managed IT industry, most businesses pay somewhere between $100 and $250 per user per month for fully managed IT services. That's the ballpark.

But that range is huge, right? A 50-person company could be looking at anywhere from $5,000 to $12,500 monthly. The difference comes down to what's included, how your environment is set up, and whether the MSP is being honest about what you actually need.

Here's how the tiers typically break down:

Entry-level ($100-$150/user/month): Basic monitoring, help desk, antivirus, and patch management. Good for simple environments with no compliance requirements and standard business hours support.

Mid-range ($150-$200/user/month): Everything above plus advanced security tools, backup management, after-hours support, and some level of strategic guidance. This is where most small-to-mid-sized businesses land.

Premium ($200-$250+/user/month): Full security stack with SIEM and SOC services, compliance documentation, vCIO services, dedicated account management, and true 24/7 support with guaranteed response times.

The problem? Many MSPs quote entry-level pricing upfront, then pile on add-ons once you're locked in. That $125/user quote turns into $195/user once you realize security, backup, and after-hours support weren't included.

What Actually Drives Managed IT Cost

Your per-user cost isn't pulled from thin air. Here are the factors that move your pricing up or down:

Number of Users

This is the baseline. More users means more endpoints to manage, more help desk tickets, and more licenses. But there's typically a volume discount baked in – a 100-person company usually pays less per user than a 20-person company because the MSP's overhead is spread across more revenue.

Server Infrastructure

Cloud-only environments are simpler to manage than hybrid setups with on-premise servers. If you're running physical servers (especially older ones), expect higher costs for maintenance, monitoring, and eventual migration planning.

Every server adds complexity. A business running three on-prem servers, a firewall, and multiple network switches requires more attention than a company that's fully cloud-based with Microsoft 365 and cloud-hosted line-of-business apps.

Compliance Requirements

HIPAA. CMMC. SOC 2. If your industry has regulatory requirements, your managed IT cost goes up – and for good reason. Compliance requires documentation, specific security controls, regular audits, and often specialized tools.

A medical practice needs HIPAA-compliant email, encrypted backup, business associate agreements, and audit logs. A law firm handling sensitive client data needs different controls than a marketing agency. The MSP has to implement and maintain all of it.

After-Hours Support

"24/7 support" means different things to different providers. Some charge extra for anything outside 8-5 Monday through Friday. Others include nights and weekends but charge emergency rates for holidays. A few actually include true around-the-clock support in their base pricing.

When your server crashes at 2 AM before a major deadline, you'll care a lot about what "24/7" actually means in your contract. Ask specifically: Do you get a live person or a voicemail? Is there an extra charge for after-hours calls? What's the guaranteed response time at 3 AM on a Saturday? The answers will tell you whether "24/7" is marketing speak or an actual commitment.

Break-Fix vs. Proactive Management

Some MSPs still operate on a break-fix model wrapped in managed services clothing. They wait for things to break, then fix them. You're paying monthly, but you're not getting proactive maintenance.

True managed IT includes continuous monitoring, proactive patching, preventive maintenance, and regular assessments. The goal is preventing problems, not just responding to them. This costs more upfront but saves money (and headaches) long-term.

Here's a simple test: ask your potential MSP how they handled the last major security vulnerability. Did they proactively patch client systems before the exploit went wild, or did they wait until someone got hit? The answer reveals whether they're actually managing your IT or just billing monthly for reactive support.

What You're Actually Paying For

When you write that monthly check to your MSP, where does it go? Here's what comprehensive managed IT should include:

Network Monitoring and Management

24/7 monitoring of your network, servers, and endpoints. When something goes down or starts acting up, your MSP should know before you do. This includes firewall management, switch configuration, and wireless network oversight.

Help Desk Support

Day-to-day IT support for your team. Password resets, email issues, software questions, printer problems – all the stuff that keeps employees from doing their actual jobs. Good MSPs answer quickly (we answer calls live in 15 seconds) and resolve most issues on first contact.

Security Tools and Management

This is where many MSPs nickel-and-dime you. A complete security stack includes endpoint protection (not just basic antivirus), email security, multi-factor authentication, security awareness training, and often dark web monitoring. Some providers charge separately for each of these.

Patch Management

Keeping your operating systems, software, and firmware updated is tedious but critical. Most ransomware attacks exploit known vulnerabilities that patches would have fixed. Your MSP should handle this automatically across your entire environment.

Backup and Disaster Recovery

Your data needs to be backed up, and those backups need to be tested. Local backups, cloud backups, documented recovery procedures – this isn't optional. Some MSPs include backup monitoring but charge extra for the actual backup software and storage.

vCIO Services

Virtual Chief Information Officer services mean you get strategic IT guidance without hiring a six-figure executive. This includes technology roadmaps, budget planning, vendor management, and someone to call when you're making big decisions about your infrastructure.

Not every business needs vCIO services at the same level. A 15-person company might just need quarterly reviews. A 100-person company going through rapid growth needs monthly strategy sessions.

Why Most MSPs Hide Their Pricing

You've probably noticed that most MSP websites don't list prices. There's a reason for that – and it's not entirely sinister. The legitimate reason is that every business is different. User counts, server configurations, compliance needs, and support requirements vary wildly. A one-size-fits-all price would be inaccurate for most companies.

At NOC, we publish transparent pricing because we think you deserve to know what you're getting into before scheduling a sales call.  Our dispatch model (St. Louis-based engineers who come to your office when needed) costs what it costs. If that fits your budget, great. If not, you haven't wasted your time or ours.

How to Budget for Managed IT

Here's the rule of thumb: most businesses should allocate 3-5% of revenue toward IT spending, including managed services, software licenses, hardware, and projects.

For a $5 million company, that's $150,000-$250,000 annually. That sounds like a lot until you break it down:

●      Managed IT services: $60,000-$100,000/year (50-75 users at $100-$150/user)

●      Microsoft 365 licenses: $15,000-$25,000/year

●      Line-of-business software: $20,000-$40,000/year

●      Hardware refresh and projects: $30,000-$50,000/year

●      Phone/internet: $10,000-$20,000/year

The actual percentage varies by industry. Technology companies and financial services often spend 5-7% of revenue on IT. Manufacturing and construction typically run leaner at 2-4%. Healthcare and legal fall somewhere in between, driven up by compliance requirements.

If you're spending less than 3% and constantly fighting IT problems, you're probably underinvesting. If you're spending more than 5% and not seeing clear value, you might be overpaying – or overcomplicating your environment.

One more thing to factor in: the cost of downtime. If your systems go down for a day, what does that cost you in lost productivity, missed deadlines, and frustrated customers? For most businesses, a single major outage costs more than several months of managed IT services. Budget accordingly.

What Are You Getting For Your Money?

Price matters, but value matters more. A $120/user provider that takes 4 hours to respond to critical issues costs you more than a $160/user provider that answers in 15 seconds – you just don't see it on the invoice.

Before comparing MSP pricing, ask these questions:

●      How fast do you answer support calls? (If they can't give you a number, that's a red flag)

●      What's included versus what costs extra?

●      Do you have local technicians who can come on-site, or is everything remote?

●      What happens when something breaks at 2 AM?

●      How do you handle security beyond basic antivirus?

●      What does switching away from you look like? (If they own your infrastructure, leaving is painful by design)

The cheapest MSP is rarely the best value. Neither is the most expensive. Look for transparent pricing, clear service definitions, and a provider who answers their phone when you call.

Ready to Know What You'd Actually Pay?

We don't hide behind "request a quote" forms. NOC publishes our pricing because we believe you should know what you're getting into before the first conversation. Local St. Louis engineers, 15-second live answer, and pricing that doesn't require three meetings to uncover.

Get transparent pricing for your business →