Another Subscription. It’s the Managed Service Model

Outsourcing systems management of a broadcast newsroom computer systems is rare.  However these are very different times.  A managed service for information technology is generally a monthly subscription with a contracted duration.  Subscriptions are used for all kinds of services purchased in newsrooms so the concept is familiar.

What does it cost?  What is the value?  Two good questions for a managed service provider. 

An MSP may have several pricing models for the routinely annuity type service.  Pricing is usually a fixed fee.  It could be a flat fee for what InfoTech Update calls an “all you can eat” model.  The managed service under such an arrangement negotiates a flat fee for a set of services agreed upon by management and the service provider.

The “per device” model is also a flat fee but it’s a bite for every device managed and more interesting.  The model provides simplicity for the MSP and easy calculation of fees. 

Example:

$199 per server (usually two)

$75 each desktop (100)

$35 per printer (10)

$100 per network

—————————

$100,176 in fixed annual fees

Almost $8400 in fixed monthly expenses for the per device plan in our example.  The model focuses on price more than benefit to the newsroom.

There is the gold/silver/bronze model – several bundled packages of services.  The setup scales so each level offers more services.  Usually the lowest proposes basic services and the next levels add benefits to the elemental bundle.

Three traditional ways to pay for managed service:

  1. All You Can Eat – Negotiated package of utilities at a fixed rate
  2. Per Device – Services charged by computer and other devices managed
  3. Gold/Silver/Bronze – Scalable bundles – each a flat fee increasing as the level accrues

The per device example might be curious in times to bring down expenses.  Understand though, the main goal of MSPs, as defined by wiseGEEK, is “to fill certain needs that are met more cost effectively by outsourcing….” A managed service trims expenses and boosts efficiency in the same process.  Business.com has a list of MSPs.

Tomorrow Broadcast Newsroom Computing delivers the list of ten things a managed service should offer.

James Rowe

Rowe and Company, LLC

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