What kind of pricing model should I choose for my MSP contract?

Choosing the Right MSP Contract

When selecting a Managed IT Service Provider (MSP), one of the first choices is whether to go with a monthly subscription or an hourly contract. Here’s what to weigh up:

1. Subscription vs. Hourly

Monthly Subscription

✔ Predictable flat fees
✔ Consistent support included
✔ Ideal for regular IT needs

Hourly Contracts

✔ Flexible, pay-as-you-go
✔ Best for fluctuating IT demand
✖ Can be costly if issues are frequent

2. Trial & Renegotiation

Trial Period

Track the volume of support requests to determine whether subscription or hourly makes sense before committing.

Renegotiate

After trial, tailor the contract to actual needs. Add clauses for scalability, IT security, and disaster recovery.

3. Must-Have Features

Scalability

Ensure the MSP can grow or reduce services with your business demand.

Security & Recovery

Contracts should include robust cybersecurity, monitoring, and disaster recovery options.

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