Managed IT at Velocity
$185 per user per month for 1-10 users, $165 for 11-25, $150 for 26-50 and $140 for 51-100. A 25-person office is 25 × $165 = $4,125 a month, or $49,500 a year, before servers, extra sites or complexity adjustments.
IT guide
MSP vs in-house IT for Phoenix businesses
For many Phoenix businesses under 50 users, a managed service provider costs about the same as or less than one full-time IT employee, and it covers more hours and more skills. In-house IT makes sense when someone has to be on site all day for business-specific work. Co-managed IT gives that person backup. The numbers below show how to compare the options for your own company.
By the Velocity Technologies team · Last updated October 2026
What does each option cost?
Compare twelve-month totals, not a monthly invoice against a salary.
An in-house IT employee
Salary is only part of the cost. The U.S. Bureau of Labor Statistics reported that benefits were 31.5 percent of compensation costs for full-time private-industry workers in June 2026. At that ratio, a $90,000 salary costs an employer about $131,000 a year.
Tools on top of the salary
An internal hire still needs monitoring, remote access, ticketing, endpoint protection and backup software. Ask any provider which of those are in the per-user rate and which security and backup licenses are extra.
Hours of coverage
One person works about 40 hours a week and takes vacation and sick days. Velocity’s help desk answers 24/7, and our security team works with a 24/7 security operations center for after-hours alerts.
When does each model make sense?
Choose a managed service provider
When you need help desk, security, backups, Microsoft 365, networking and planning under one contract, and you do not have enough daily work for a full-time specialist in each area.
Choose in-house IT
When someone must be on site all day for business-specific systems, such as a lab, a production line or a custom application, and you can fund backup coverage and training.
Choose co-managed IT
When you already have a capable IT person who needs help desk overflow, security tools, after-hours coverage or project help. They keep ownership. We add depth.
What can one IT person not cover alone?
Even an excellent hire runs into the same limits.
Nights, weekends and vacations
Ransomware often starts outside business hours. Someone has to see the alert and act on it.
Every specialty at once
Firewalls, Microsoft 365 security, backups, cloud and compliance each take real expertise. Few people are strong in all of them.
A clean handoff
When the only IT person leaves, passwords and know-how often leave too. A provider keeps written documentation that you own.
A second set of eyes
The person who builds and runs your systems is not well placed to audit them.
Related services
Checklist
Work through this list before the assessment call
- List every IT task done in the last three months and who did it.
- Add up salary, benefits, tools, training and overtime for internal IT staff.
- Price managed IT at your user count with the quote calculator.
- Note which hours and skills are not covered today.
- Decide who covers a two-week vacation or a resignation.
- Compare twelve-month totals side by side.
FAQ
Questions about this guide
Is an MSP cheaper than hiring IT staff?
Often, but not always, so compare twelve-month totals. At our base rates, 25 users cost $49,500 a year. An employee costs salary plus about 46 percent for benefits at the BLS ratio, plus tools. Coverage matters too: one person cannot answer the phone 24/7.
Can an MSP work with our internal IT person?
Yes. Co-managed IT is built for that. Your person keeps daily ownership, and we add help desk capacity, security tools, after-hours coverage and project help.
What does Velocity charge for onboarding?
Onboarding is a one-time cost estimated separately from the monthly rate. The quote calculator shows both, and the free network assessment confirms the final number.
Does hiring an MSP mean losing control?
It should not. You own your accounts, passwords, documentation and data, and a good contract says so. Ask any provider how you would get everything back if you left.
At what size does in-house IT make sense?
There is no fixed cutoff. The test is whether you have enough on-site, business-specific work to keep a person busy and can still cover nights, vacations and specialties. Companies that do hire often keep a provider for security, after-hours coverage and projects, which is co-managed IT.
What should we ask an MSP before signing?
Who answers after hours, what the per-user rate includes, how onboarding is priced, who owns the documentation and admin accounts, how often you get a planning review, and how you would leave.
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