For many IT teams, gaining company buy-in for large expenses is a constant challenge. Convincing your company’s leadership that managed IT security service providers (MSSPs) are worth it can be hard work, and persuading them to go beyond the bottom-dollar options can be much harder. MSSPs can be enormously helpful for organizations, but a good MSSP won’t come cheap.
If your organization is considering using an MSSP, what’s a reasonable amount to spend on its services? What are the factors that impact the total cost? And what are the risks of trying to save money in this area?
In this article, we’ll elaborate on the factors that influence the cost of managed IT security service providers and how much you should expect to pay for one.
Common MSSP Pricing Models
Let’s start by looking at how MSSP services are typically priced. There are different pricing models used by providers, and the one you opt for will depend on several factors and how your organization is structured.
- Per-user pricing is where you’ll pay a set amount for everyone who will use the MSSP services. This is a good choice if you have a few users sharing lots of devices.
- Per-device pricing is where you pay for each device you use and is a smart choice if you have a handful of devices being shared among many users
- Tiered pricing involves breaking down the MSSP services into different levels, each more advanced than the last, with different price points. It’s a good fit if you plan to scale or you have needs that change regularly.
Other payment options include paying according to how much data you use and paying as part of a wider cloud subscription.
What Factors Influence the Cost of an MSSP?
The pricing model you choose will partly determine how much you end up paying — more devices, for example, could lead to higher costs if you opt for per-device pricing. But that’s not the only factor that will influence the cost of your managed IT security service provider. Here are a few others:
- Size. This could refer to the number of users in your organization, the size of your networks, the amount of data you use, the number of devices you use, or a combination of all. Generally speaking, bigger organizations will require more expensive MSSP services.
- Complexity. Businesses that carry out more complex tasks using more sophisticated infrastructure will typically need more advanced MSSP services, which tend to cost more.
- Risk. If your business is in a high-risk industry, handles highly sensitive data, is required to comply with strict privacy regulations, or has suffered attacks in the past, you’ll need to pay for more sophisticated MSSP services to ensure security.
- Level of support. Some businesses can take care of a lot of their IT needs by themselves, whereas others will need to pay more for more comprehensive MSSP support.
No two organizations will have the exact same needs, so to determine the right MSSP services for your company, you’ll need a clear idea of your goals and the support you anticipate needing.
How Much Is Enough to Spend on an MSSP?
So how do you figure out how much to spend on a managed IT security service provider? This is something a lot of businesses get wrong because they are unrealistic about what they need and how much they need to spend. MSSP costs can fluctuate quite a bit so it’s worth taking the time to explore multiple options.
According to Bill Borbas, Director of Business Optimization at DYOPATH, a big mistake many companies make is spending too little. He says, “Many businesses go in with a low-ball budget expectation and then do nothing. They then end up buying everything after a breach, when it would have cost less if they [had] worked to prevent the incident in the first place.”
So how cheap is too cheap? It’s normal for pricing to fluctuate by 5% to 10% between providers. But if you’re receiving a quote of 25% or 30% less than your other quotes, there will likely be a significant gap in deliverables.
What Are the Risks of Penny Pinching?
What exactly is at stake when you opt for a worryingly cheap MSSP service provider? Ken Garcia, DYOPATH’s Director of New Business Development, says, “When it comes to partnering with an MSP, sometimes corners are cut to appear more cost effective. In the end, these costs… might come back to haunt you and cost you more.”
According to Garcia, the risks of opting for a low-cost managed IT security service provider can be broken down into people, processes, and tools. Let’s look at each category.
- Frustrated, annoyed people. The wrong resources can create frustration and delays for team members who haven’t been trained on how to use them. In addition, sub-optimal resources can lead to worse experiences for your end users. Low-cost resources tend to have higher turnover, leading to lower resolution times and friction.
- Poorly documented processes. Low-cost managed IT security service providers might fail to follow best practices and properly document processes, leading to inconsistent experiences and results. When best practices aren’t followed by everyone, businesses can find themselves open to risks, including security vulnerabilities, which can result in massive costs.
- Tools that don’t integrate. A penny-pinching MSSP might employ tools and software solutions that don’t integrate with your current tools or that you plan to use in the future. This can cause a multitude of problems: tools that fail to work as part of your overall infrastructure, losing the ability to drive automation, or having to purchase additional middleware at extra cost.
The right MSSP service is worth spending money on. While cutting costs may seem tempting in the short term, the long-term advantages of opting for a higher-end managed IT security service provider easily justify the higher price tag. What’s important is finding the right MSSP that fits your budget without sacrificing on the quality of the service it provides.
It’s Worth Investing in the Right MSSP
The right managed IT security service providers get it right the first time — putting a reliable and effective infrastructure in place to reduce or eliminate the risk of costly errors and setbacks, giving you a consistent and smoothly operating security infrastructure, and providing peace of mind around security.
If you’re ready to work with a managed IT security service provider that prioritizes your company’s data security, contact DYOPATH today.
