Managed IT ROI Calculator: What You Actually Save
The question every business owner asks about managed IT services: "Is it worth the monthly cost?" The answer is almost always yes, but understanding why requires looking beyond the monthly invoice.
The In-House IT Cost
Hiring a full-time IT person in Southern California costs: - Salary: $75,000-$120,000 for a competent network administrator - Benefits: Add 25-35% for health insurance, 401k, payroll taxes = $18,750-$42,000 - Training: $3,000-$5,000/year for certifications and continuing education - Tools and software: $5,000-$10,000/year for monitoring, backup, and security tools - Turnover risk: Average IT tenure is 2-3 years. Recruiting and onboarding costs average $15,000-$25,000 per hire. - Total annual cost: $100,000-$180,000 for a single person with limited expertise
One person cannot cover networking, security, cloud, VoIP, backup, and compliance at an expert level. They take vacations. They get sick. They quit. And when they leave, they take institutional knowledge with them.
The Managed IT Cost
A typical managed IT plan for a 15-30 employee company costs $1,500-$4,000/month ($18,000-$48,000/year). This includes: - 24/7 monitoring and alerting - Helpdesk support for all employees - Patch management and security updates - Backup management and disaster recovery - Vendor management (ISP, phone, SaaS providers) - Strategic planning and technology roadmap - Team of 5-10 specialists instead of one generalist
The Savings Breakdown
| Category | In-House | Managed IT | |----------|----------|-----------| | Annual personnel cost | $100,000-$180,000 | $0 (included) | | Monthly service cost | $0 | $18,000-$48,000/year | | Tools and software | $5,000-$10,000 | $0 (included) | | Training | $3,000-$5,000 | $0 (included) | | Coverage hours | 40 hrs/week | 24/7/365 | | Expertise areas | 1-2 | 8-10 | | Annual total | $108,000-$195,000 | $18,000-$48,000 |
Net annual savings: $60,000-$177,000
When In-House Still Makes Sense
Companies with 100+ employees, complex custom applications, or dedicated compliance requirements may need a combination of in-house IT leadership (CIO/IT Director) supported by a managed services provider for day-to-day operations. This hybrid model provides strategic oversight with operational scalability.
Summit DNC offers managed IT services designed for 10-100 employee businesses in Southern California. Contact us for a customized ROI analysis based on your current IT spending.
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