Costs for managed services providers are going up, that ultimately means higher prices for their customers.

Prices for managed services providers are increasing – that ultimately means higher prices for their customers.

A major player of managed services tools recently announced a price increase that will amount to 10% for many providers. JM Addington does not use this provider, however, it’s newsworthy because it represents the broader cost increases for managed services provider across the board. For most MSP’s this will only result in a 1-2% cost increase, however, combined with a rising cost of labor due to a shortage of talented technical workers many companies will have no choice but to pass these costs on their customers.

The silver linings are that, (1) costs are increasing because the economy is still growing so it will support these price increases and (2) savvy consumers who have a managed services contract will not be immediately affected because they have already locked in their rates for 12 – 36 months, allowing for better business planning.