Budgeting IT support in 2025 means balancing uptime, security obligations and talent shortages. This guide breaks down real Sydney-market numbers so CFOs, COOs and IT managers can compare Break/Fix and Managed IT models—then fine-tune budgets before the next board meeting.
Why Pricing Varies in 2025
- User count & device mix – Bigger fleets unlock volume discounts.
- 24 × 7 SOC coverage – Adds $20–$30 per user for continuous monitoring.
- Cloud vs on-prem ratio – Pure-cloud fleets cost ~15 % less to manage.
- On-site call-outs – Travel inside Greater Sydney still averages $95–$120 per visit.
- Cyber-insurance requirements – Essential Eight alignment drives tooling costs but lowers premiums.
External reference: The ACSC puts average SMB downtime at AUD 9 000 per hour (2024 Threat Report). A resilient support plan offsets that risk.
Average Monthly Costs by User Count
Users | Break/Fix (base fee + hourly) | Managed IT (All-Inclusive) | Notes |
25 | $750 base + $185/hr ad-hoc | $120 per user → $3 000 | 2 hrs after-hours bundled |
50 | $1 250 base + $175/hr | $110 per user → $5 500 | Includes 24 × 7 remote monitoring |
100 | $2 000 base + $165/hr | $95 per user → $9 500 | On-site SLA ≤ 2 hrs within 30 km |
Key takeaway: Even modest incident rates (≥ 6 per month) push Break/Fix totals beyond a managed flat fee.
Hidden Fees Most Buyers Miss
- After-hours surcharge – +35 % to standard hourly rate.
- Project labour – Separate from BAU; $150–$200/hr.
- Travel outside Metro – $1.20/km from Sydney CBD.
- Legacy server surcharge – Additional $15/device for end-of-life OS.
- Licence true-ups – Mid-year Microsoft seat growth can add 10 % to OPEX.
Cost-Saving Checklist
Pro Tip: Bundle cyber-security tools (EDR, MFA, backup) with support to avoid piecemeal mark-ups.
- Consolidate SaaS licences – Audit unused Microsoft 365 add-ons quarterly.
- Use hybrid Help-Desk tiers – Keep L1 offshore but L3 on-shore.
- Adopt Standard Operating Environments – Reduces troubleshooting time.
- Negotiate rollover project hours – Avoid “use-it-or-lose-it”.
- Pre-pay block hours at discounted rates for predictable projects.
- Enable self-service password reset – Cuts ticket volume by up to 30 %.
- Align with Essential Eight – Lowers cyber-insurance premiums and incident risk.
Frequently Asked Questions
What is a fair hourly rate for ad-hoc support in Sydney?
AUD 165–195 per hour for L2 engineering; L3 security work can hit $220/hr.
How do MSPs calculate per-user pricing?
They model average labour per seat, tooling (RMM, EDR), licence management overhead and desired margin.
Can you mix Break/Fix and Managed IT contracts?
Yes. Some firms keep legacy systems on Break/Fix while critical cloud workloads sit under a managed SLA—but beware duplicated tooling costs.
Ready for Exact Numbers?
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