Selling month-by-month, fixed-fee managed services requires this managed services provider’s (MSP’s) vigilance in rooting out activities that threaten its profitability.
The holy grail of managed services is being able to sell a comprehensive bundle of solutions and services at a predictable monthly cost. Unlike the unpredictable hardware expenses (and downtime costs) that break-fix clients experience, managed services clients want a consistent IT experience and a predictable monthly cost.
MSPs vary widely in how close they get to the flat-fee utopia. Some only guarantee a flat fee for software licensing and remote monitoring services, but charge hourly labor fees to address support issues, although oftentimes at a reduced cost compared with what they charge break-fix customers. Others include remote support in their fixed monthly fees, but charge for any services requiring on-site tech support.