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Service Contract Rates

Posted on 2014-04-08
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Last Modified: 2016-11-23
Hello Experts,

I see a wide range of opinions regarding cost of service contracts for remote IT.

I would greatly appreciate your opinion for what you would charge per month in your demographic area for support contract for the following  hypothetical configuration:

24 x 7 x 12 access to expert technical support via telephone/email/message/remote management & 30 minute response for technician to reach the main site. Support  is provided as a complete enterprise package ie.  all hardware, software, application software,backup management,security and messaging.
Because this enterprise is a sales and service type business, all maintenance such as updates upgrades, virus removal and such must be performed after business hours or on the weekends only.
The enterprise also needs to be monitored for viruses, failures and Internet attacks.
Customer pays for equipment replacement costs.

Main office has a small satellite office located 100 miles away...

Main Office: 40 ea. physical desktops 50/50 Win XP & WIN 7

SERVERS
3 ea. Hosts VMware esxi 5.5 Dell PowerEdge 1950 32 GB 4 TB RAID1
  Hosting
- SBS 2003 w/ Exchange servicing 50 Desktop Clients & 30 iPhone,iPad clients
- Windows Server 2012 R2 (two large SQL databases for Accounting & CRM)
- Windows Datacenter to backup entire enterprise daily.
- 10X Windows 7 for RDP access from satellite office

NETWORK

- 2 ea. 20/20 MBPs VDSL circuits
- 1 ea. Palo Alto Networks PA 3015 Firewall
- WI-FI distribution through out 5000 SF facility for ~ 15 iPhone/iPad
- 3 ea. 24 Port 1000 MBPs Netgear

HARDWARE / SOFTWARE

40 Physical Workstations (DELL) & 10 RDP Connections to VM hosted clients

- WIN XP & WIN 7
- MS Office Word, Excel, Access & Outlook
- CRM & Accounting SQL Client
- Virus Protection

Thank you kindly for opinions or suggestions of any kind.
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Question by:insidetech
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carlmd earned 500 total points
ID: 39988331
No price, but a few comments.

1. First problem, unless you are in a place like New York City it is doubtful that anyone would offer 30 minute on site response. If you are able to find such you will pay dearly for it. The best is typically 2 hours.

2. Not sure what 24x7x12 is, but it sounds like you want 7x24 365 days a year.

3. You have quite an assortment of hardware and software you want maintained. It could be a problem to find one company that will do it all. You might want to consider splitting out the hardware and software support, and maybe networking as well.

4. If you purchased most of what you have from one company, I would look there first.

Have you considered hiring an employee for all but the hardware portion of the job? It sounds like you have enough to do.
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by:insidetech
ID: 39989277
OK... I will be more specific.
This operation is currently up and running. The company is working on a franchise model cookie cutter style. Naturally regional service costs such as this will / may differ and so I am investigating by how much.
Where the headquarters are, they are getting the 24 x 7 x 365 (12 months) service as described and clearly they are "spoiled" with the unusual service they are accustomed to.
For what it is worth they are paying $4K per month flat fee and they feel that they can do much better in larger metropolitan areas.
My report to them suggests full time employee just as you do so it is good to have a validation. I say good luck getting an in house IT that can handle ALL this for $4k / month salary ;-)
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Expert Comment

by:carlmd
ID: 39989463
For an employee that rate is not realistice in a large metropolitan area (Boston, NY,Philadelphia,  LA etc). It might be possible in areas outside of such, but then what are the chances of finding such a person there.

Give what you described, the current $4K is a steal considering it covers hardware, network, parts, labor, software support AND a 30 minute response. What are these guys in an office across the street?
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by:insidetech
ID: 39989529
I agree full hardheartedly! Yea,  just a retired couple that used to be in big time corporate IT so they make things look easy and simple. The management simply does not understand what all goes into this and certainly I would not do it for that price ;-)
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