As a Managed Service provider, we have noticed that technology has become an even bigger part of running an effective organization. While many products and services have become cheaper due to advancements in technology, this is not the case for IT services. In fact, prices for IT services have been increasing due to the increased requirements, costs, and skills necessary to keep up with the latest technology. As a result, we will be implementing price changes for our services.
We will explore some of the questions our customers may have about the price changes, including which services will be affected, when the changes will come into effect, and how the prices have been determined.
When everything is getting cheaper with technology, why are prices for IT services going up?
Technology has become an even bigger part of running an effective organisation. Although it may seem that there are economies of scale – the requirements, costs and skills for staying current and informed about technology have increased. The increases in price are to avoid compromising on services to clients.
When will the price rises come into effect for each product line above?
We aim to implement the changes within a few months by June 2023.
Will the price rise affect me if I am already in a contract term with you?
This will depend on whether its Microsoft or a proprietary Microbyte product. Some Microsoft products are tied in for an annual term. A full breakdown of services have been included on the price rise letter.
Which services are affected and how have the price changes been determined?
All affected services have been listed on the price rise letter. The rises have been determined based on Supply Chain increases and other rising costs surrounding technology.
Will this affect all regions, for example we operate in multiple countries?
Most services will be supplied via the UK branches and therefore it’s likely this will affect those companies headquartered in the UK. There may be some considerations for overseas headquartered companies, please speak with your VITD (Virtual IT Director) for further clarification.
Are any discounts available for longer contract periods?
All suppliers are increasing their pricing to accommodate all inflation over the last few years. However, there may be benefits to having longer contract periods in place, speak to your NetAdmin or vITD to have a discussion.
Can I get my services cheaper from other providers?
Due to you being with a Managed Service provider, it is unlikely you will make any significant savings by splitting products away. It is also very likely you will cause more disruption and cost in an effort to manage multiple suppliers, and increase communication burdens between them.
Are Microbyte’s charges still good value for money?
We have done plenty of market research to ensure we are still competitive. We’ve asked some questions that may gauge your current services:
- Do you always get the phone answered promptly?
- Have you ever been down for a significant period (i.e. more than a day)?
- Do you always know who to speak to and get advice from the right person?
- Have your security breaches immobilised your operation?
Why do the price increases for ad-hoc waiver and 24/7 support seem to be higher than Managed Services?
Costs across the board are going up
We have invested in more and more streamlining technology
The cost for labour is always increasing, especially for unsociable hours
Why are some price rises listed as Various?
Depending on the product or service may depend on how much the supplier has chosen to increase them – we have tried to provide as much information as possible on the price rise letter.
How long will these prices be fixed for and when can I expect the next one?
Most companies will put their prices up in line with inflation every year – Microbyte will review prices every quarter and ensure that we are still offering the best value services, however – there may be annual price increases should suppliers continue to raise their costs.
Due to global circumstances we held off all rises and have only had a single increase in the last three years. As such some product lines appear more dramatic than the reality which is ultimately and adjustment for inflation and passing on costs.
