Negotiating MSP Contracts: Tips from Industry Experts

Michael Rodriguez

IT Cost Optimization Specialist

Certified IT financial manager specializing in helping SMBs reduce technology costs while maintaining service quality.

Learn expert strategies for negotiating better terms and rates with your managed service provider.

Preparation Is Key

Successful MSP contract negotiation starts long before you sit down at the table. Here's how to prepare:

1. Know Your Leverage

• Document your current spending and service usage
• Research competitive market rates
• Understand your provider's business model
• Identify alternative providers

2. Common Negotiation Points

Focus on these key areas for maximum impact:

• Service level agreements (SLAs)
• Pricing structure and volume discounts
• Contract length and termination terms
• Scalability provisions

Negotiation Strategies

1. Bundle Services Strategically

Combine services for better pricing, but maintain flexibility:

• Group similar services for volume discounts
• Keep critical services separate for flexibility
• Negotiate volume-based pricing tiers

2. SLA Optimization

Standard vs. Premium SLAs:
Response Times:
- Critical: 15min vs. 5min
- High: 1hr vs. 30min
- Normal: 4hr vs. 2hr

Uptime Guarantees:
- Standard: 99.9%
- Premium: 99.99%

Support Hours:
- Standard: 8x5
- Premium: 24x7