When you contact a Managed Service Provider (MSP) and are offered a block time deal for support, what does that mean? What is the best way to use it, and is it really all they say about it?
Understanding Block Time
Block time for an MSP typically covers Helpdesk support hours, System Admin hours, or even security team hours. It's often presented as a "trial run" or a "foot in the door" approach. They suggest trying their services through this block time, with the intention of upgrading you to more comprehensive services later.
The Realities of Block Time
When you purchase block time from an MSP, there are three likely outcomes, and only one benefits you. More often than not, the MSP benefits. Here’s why:
Underutilization: The MSP provides minimal service, well below the total block time sold. For example, if you purchase 40 hours but only need 1 hour, the MSP profits from the unused 39 hours. And these hours are a use it or lose it deal.
Exact Utilization: The block time is used up exactly as purchased. This situation is rare, and even then, it’s usually just extra income for the MSP.
Overutilization: The client goes over the block time, leading to premium hourly charges. This scenario is highly favorable for the MSP as they can charge a higher rate for the additional hours.
The Hidden Costs
Often, MSPs allocate a portion of block time for "regular maintenance," leaving the rest for ticket requests. If your needs exceed the block time, you’re charged premium rates for overages. This can feel like a good deal compared to one-time service rates, but it’s designed to benefit the MSP.
Who Really Benefits?
If you're curious, ask the MSP who benefits from the extra money paid for overages—the technician working on your issue or the MSP itself? Usually, the tech doesn’t see a bonus for their hard work. Some MSPs may claim that end-of-year bonuses include these funds, but it’s likely pooled from various sources.
IT UR Way’s Approach
At IT UR Way, we don’t believe in block time. We consider it risky for both us and you. Our goal is to be your IT partner, which requires trust and commitment. We don’t limit our services by hours, ensuring your business never has to stop because you ran out of support hours.
Tracking hours in a bucket is time-consuming and detracts from meaningful planning for your company’s improvements. Instead, we offer tailored plans and pricing to meet your needs, no matter the difficulty.
Conclusion
If you’re ready to break free from the constraints of block time and get a customized quote tailored to your business, contact us today. Let’s work together to provide consistent, reliable IT support that grows with your business.