Managed IT Pricing for Small Businesses

 What 10-50 Employee Companies Actually Pay

There's a reason MSPs love working with businesses your size - and it's not just the revenue. Companies with 10-50 employees are complex enough to need real IT infrastructure but streamlined enough that a managed services model actually works.

Under 10 employees: Most businesses can get by with cloud-only setups, consumer-grade tools, and occasional break-fix support. The complexity isn't there yet.

Over 50 employees:  You probably need internal IT staff, even if it's just one person. The volume of support requests, the number of line-of-business applications, and the organizational complexity usually demand someone on-site.

10-50 employees: You're running servers (or should be running cloud infrastructure), you have compliance concerns (or will soon), and IT problems cost you real money in lost productivity. But hiring a full IT person? That's $60,000-$90,000 in salary, plus $15,000-$25,000 in benefits, plus training, tools, and management overhead. For many businesses your size, that math doesn't work.

Managed IT gives you a full team - help desk, security specialists, network engineers, strategic advisors - for less than one full-time salary.

You get coverage when your IT person would be on vacation. You get expertise when they'd be Googling solutions. You get 24/7 monitoring when they'd be asleep.

What Should an SMB Budget for IT?

Let's talk real numbers.

For fully managed IT services (not counting software licenses, hardware, or projects), most St. Louis businesses with 10-50 employees pay somewhere between $2,500 and $10,000 per month. That breaks down to roughly $150-$200 per user per month, depending on complexity and service level.

At the lower end ($2,500-$4,000/month): A 15-20 person company with straightforward needs. Cloud-based email, simple file sharing, no on-premise servers, no compliance requirements. You need reliability and responsive support, not a complex security stack.

At the mid-range ($4,000-$7,000/month): A 25-35 person company with some complexity. Maybe an on-premise server or two, industry software that needs maintenance, after-hours support requirements. Security matters more because you're handling client data or financial information.

At the higher end ($7,000-$10,000/month): A 40-50 person company with real infrastructure. Multiple locations, compliance requirements (HIPAA, PCI, or industry-specific regulations), a mix of on-premise and cloud systems, and significant consequences if things go down.

These numbers align with the $100-$250 per user industry benchmark, but smaller businesses often fall in the $150-$200/user range because the MSP's overhead is spread across fewer users.

Three Pricing Tiers: What You Actually Get

Not all managed IT packages are equal. Here's what small businesses typically get at each price point:

Basic ($100-$140/user/month)

What's included:

●      Help desk support (business hours)

●      Network and endpoint monitoring

●      Basic antivirus/endpoint protection

●      Patch management (OS updates)

●      Email support (Microsoft 365 basics)

What's NOT included:

●      After-hours support (nights, weekends, holidays)

●      Advanced security tools (email filtering, dark web monitoring)

●      Backup management (often sold separately)

●      vCIO or strategic guidance

●      Compliance documentation

Who it's for: Very simple environments. No servers, no compliance requirements, no critical systems that can't wait until Monday. If you're okay with support only during business hours and basic security, this works.

The catch: Most small businesses outgrow this quickly. That "basic" antivirus won't stop modern ransomware. That "business hours" support doesn't help when email dies on Friday at 5:30 PM before a Monday deadline.

Standard ($140-$180/user/month)

What's included:

●      Everything in Basic, plus:

●      Extended or 24/7 help desk support

●      Advanced endpoint protection (EDR, not just antivirus)

●      Email security and spam filtering

●      Multi-factor authentication management

●      Basic backup monitoring

●      Quarterly business reviews

What may cost extra:

●      Full backup and disaster recovery

●      Compliance documentation and audits

●      vCIO services (strategic planning)

●      On-site support visits

Who it's for: Most 10-50 person businesses. You need reliable support, real security, and someone watching your systems 24/7. You don't have exotic compliance needs, but you take security seriously.

This is where most small businesses should land. You're getting protection against modern threats, support when you actually need it, and enough strategic guidance to avoid major mistakes.

Premium ($180-$250/user/month)

What's included:

●      Everything in Standard, plus:

●      SIEM/SOC (Security Operations Center monitoring)

●      Compliance documentation (HIPAA, PCI, SOC 2)

●      Full backup and disaster recovery with testing

●      vCIO services (technology roadmap, budget planning)

●      Priority response times

●      Dedicated account management

Who it's for: Businesses with compliance requirements, critical uptime needs, or rapid growth plans. If a breach would cost you clients, a lawsuit, or regulatory fines, you need this level of protection.

Worth the premium if: You're in healthcare, legal, financial services, or handle sensitive client data. The cost of a compliance violation or data breach far exceeds the premium you're paying.

Managed IT vs. Hiring an Internal IT Person

Here's the math most small business owners get wrong.

Hiring an IT person:

●      Salary: $60,000-$90,000/year

●      Benefits (health, 401k, PTO): $15,000-$25,000/year

●      Training and certifications: $3,000-$8,000/year

●      Tools and software: $2,000-$5,000/year

●      Total: $80,000-$128,000/year

And you still only get one person. They take vacation. They get sick. They don't know everything (nobody does). When they leave, their knowledge walks out the door.

Managed IT (30-person company at $160/user):

●      Monthly cost: $4,800/month

●      Annual cost: $57,600/year

For roughly half the cost of one IT hire, you get a full team. Help desk techs, security specialists, network engineers, and strategic advisors - all available 24/7. When one person is on vacation, others cover. When something requires specialized expertise, you've got it.

The real comparison isn't even cost—it's coverage. One IT person can handle maybe 30-50 users effectively. But they can't be awake at 2 AM, can't specialize in security AND networking AND cloud AND compliance, and can't be in two places at once.

For businesses with 10-50 employees, managed IT typically makes more sense than hiring. Once you hit 75-100 employees, the math shifts - that's when co-managed IT (your internal person plus an MSP) often becomes the right model.

What SMBs Should Actually Prioritize

Every MSP will sell you their full stack. Here's what actually matters for companies your size:

1. Security that works (not just "antivirus")
   Basic antivirus stopped being enough years ago. You need endpoint detection and response (EDR), email security, and multi-factor authentication as baseline - not add-ons. If your MSP quotes security tools separately from the base package, that's a red flag.
2. Backup that's tested
   Everyone says they do backups. Ask when they last tested a restore. If they can't answer immediately, those backups might be worthless. You need backup monitoring, regular testing, and clear recovery time expectations.
3. Responsive support (measure it)
   "Fast response" means nothing. "We answer calls live in 15 seconds" means something. Get specific commitments on response times - not just first response, but resolution time. At NOC, we answer calls live in 15 seconds and resolve most issues on first contact because small businesses can't afford to wait.
4. Someone who explains things
   You're not an IT expert (that's why you're hiring one). Your MSP should explain what's happening in plain language, give you options when decisions need to be made, and help you understand your technology roadmap.

Skip the fancy features you don't need: Enterprise SIEM, complex compliance frameworks, dedicated vCIO hours - unless your industry requires it, these can wait until you grow into them.

Common Mistakes When Choosing an MSP

We've seen businesses make the same mistakes for years. Here's what to avoid:

Going with the cheapest quote. That $99/user price looks great until you realize security, backup, and after-hours support are all add-ons. By the time you have what you actually need, you're paying more than the "expensive" provider who bundled everything.

Not checking resolution time guarantees. Ask: "How fast do you answer the phone?" If they can't give you a specific number, they don't track it. "We respond quickly" isn't a commitment.

Ignoring references in your industry. An MSP that's great for manufacturing might struggle with healthcare compliance. Ask for references from businesses your size, in your industry, in your area.

Signing long-term contracts without an exit clause. Some MSPs lock you into 3-year agreements with steep penalties for leaving. If they're confident in their service, they shouldn't need to trap you.

Not asking about on-site support. Remote support handles 90% of issues, but some problems require hands-on. Does your MSP have local technicians in St. Louis, or will you wait days for someone to drive in from Kansas City? At NOC, our dispatch model means St. Louis-based engineers and technicians who can be on-site when remote support isn't enough.

Finding the Right Fit for Your Small Business

Managed IT pricing for small businesses isn't mysterious once you know the benchmarks. For 10-50 employees, expect $150-$200 per user per month for comprehensive services, or $2,500-$10,000 per month total depending on your size and complexity.

The right MSP gives you better coverage than an internal hire at lower cost. The wrong MSP gives you headaches, surprise invoices, and the same IT problems you had before.

Look for transparent pricing, specific response time commitments, local support when you need it, and a provider who treats your 25-person business with the same priority as their 200-person clients.

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