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Understanding Managed Security Services Pricing

Understanding Managed Security Services Pricing

As businesses have grown more reliant on technology, cybersecurity remains a top concern for most company owners in a highly digitized marketplace. Connected technologies have evolved substantially in just the past year and continue to present new possibilities every day. And while the latest technological innovations have undeniably helped organizations across every industrial sector streamline their processes and reduce operational complexity, these systems can introduce a new element of risk.

When it comes to managing IT and balancing risk, skyrocketing operating costs have led many business owners to seek alternative solutions for reducing their technology expenditures. One such path is choosing to outsource their IT security needs. Under most circumstances, small to medium-sized businesses will considerably improve their cybersecurity protection after partnering with a managed security service provider (MSSP). And these services almost always make the most economic sense.

Any basic comparative analysis will show that the cost-benefit ratio of maintaining an in-house IT department is inferior to outsourcing your cybersecurity needs to an MSSP like PCH Technologies. For most business owners, the decision to hire out their digital security requirements is a financial one. Even if you’re still of the mindset that managed service provider solutions are cost-prohibitive, you can always work with an IT support company to develop a customized option to meet your specific requirements.

In this post, we’ll examine some of the average costs associated with hiring an MSSP before covering the different service types and their primary benefits.

What goes into determining managed security services cost?

The two questions business owners usually ask when they start thinking about outsourcing their security requirements is how much do MSSPs cost, and what cybersecurity services can I expect for that pricing? Managing your digital environment is no easy task, and depending on the scope and complexity of your data and infrastructure, it can be a significant undertaking. It is, therefore, difficult to offer a one-size-fits-all solution before conducting a comprehensive analysis of your unique circumstances.

What we can submit with reasonable surety, however, is a list of the primary cybersecurity services you should expect from an MSSP. But first, let’s answer the question, what is cybersecurity? Cybersecurity describes the branch of information technology responsible for safeguarding your valuable business data and infrastructure. A reputable managed security provider will monitor your systems, carefully generating threat assessments while detecting potential cyberattacks and halting them before they start.

Leading MSSPs ensure robust protection across all your company endpoints, systems, and networks. Here’s a list of the tasks most prominently handled by an MSSP.

  • Network monitoring and threat detection
  • Security operation centers (SOC)
  • Cyber risk assessments
  • Data storage and security
  • Cloud-based disaster recovery
  • Cybersecurity training and consulting
  • Managed network security
  • Business continuity planning (BCP)

MSSPs can also develop customized advanced solutions for companies that manage especially sensitive data or have become habitual targets of cyber criminals. Services like these give you additional network and infrastructure protection against the most sophisticated attacks.

Managed security service pricing models

When it comes to managed security service costs, you’ll find several platform and pricing options available. There are six major pricing models, which we’ll discuss in further detail below:

1. Pay-per-user pricing

Oftentimes, managed service providers will work up an estimate based on your existing infrastructure and data requirements, but most MSSPs offer a pay-per-user pricing option as well. This pricing model lets you pay based on the number of employees accessing the infrastructure.

Businesses that elect this route pay monthly pursuant to the number of employees they support that access the digital environment covered by the MSSP. This platform benefits companies with low employee turnover rates, but the services delivered can get pricier as you scale your workforce.

2. Pay-per-unit pricing

Unlike the pay-per-user platform, pay-per-unit pricing factors the scope and complexity of your current IT infrastructure and virtual systems. Many argue this is the most straightforward way to price an MSSP service because it accounts for the total number of devices in use.

For many businesses, pay-per-unit typically ends up being the most affordable solution. The main drawback to this option is that the costs of system upgrade requirements and the need to introduce additional hardware into your digital ecosystem can get expensive over time.

3. A-la-carte

Companies that need customized solutions for advanced security requirements or simply because they want to cut costs can opt for an a-la-carte service. This is the most flexible pricing model if you’re operating on a thin cybersecurity budget.

4. Bundled services

Bundled pricing, also called the tiered pricing model, offers prefigured standardized products that provide businesses with rudimentary cybersecurity packages. This option is a good choice for companies without advanced cybersecurity protection needs.

5. Flat fee pricing

Flat fee MSSP pricing options give access to a comprehensive security model at a fixed monthly price. Companies with extensive and varying security requirements, including remote and onsite support, benefit from this service most because they won’t have to reevaluate their monthly information security budgets.

6. Monitor-only

The monitor-only pricing model is best suited to companies that only need minimal protection against the current threat environment. This service can make for a reliable additional layer of monitoring and protection at companies that already support robust in-house security operations centers.

Average MSSP pricing

On average, pay-per-user pricing typically costs $150-200 each month per user. The pay-per-unit model offers discount tiers based on the number of devices you run. The cost for this service can range anywhere from $10-250 for every device covered. Bundled and a-l-carte pricing models vary, running anywhere from $100 to $300 per user. For comprehensive packages, pricing is tricky to estimate because there are so many different permutations of this service type.

Interested in exploring managed security services for your organization? Reach out to PCH Technologies now by scheduling your free initial consultation online or call us at (856) 754-7500.