The MSP Microsoft 365 Markup Scandal
Many MSPs accounting doesn’t make sense when it comes to M365 pricing.
Why You're Paying Too Much for Basic M365 Management
Let's talk about the elephant in the room: Managed Service Providers charging $100-150 per user per month for Microsoft 365 management. If you're paying these rates, you're likely getting ripped off, and it's time someone said it out loud.
The Math That Doesn't Add Up
Let's break down what you're really paying for with typical MSP M365 management:
What MSPs Promise:
24/7 monitoring and support
Proactive security management
Regular optimization and updates
Expert-level M365 administration
What You Actually Get:
10-15 minutes of actual management per user per month
Basic monitoring (if you're lucky)
Reactive support when things break
Junior technicians following checklists
The Real Cost Breakdown:
Your MSP is likely spending $2-5 per user per month on actual management
The rest is pure markup and overhead
Many MSPs also mark up their M365 licensing costs
You're paying for their sales team, fancy offices, and profit margins
The Hidden Fees and Markups
Beyond the monthly per-user charges, many MSPs add additional costs:
Project fees for the initial setup that should be included
Hourly charges for configuration changes
Markup on Microsoft licensing (sometimes 20-30%)
Separate charges for advanced security features
Premium support tiers for basic functionality
Why MSPs Get Away With It
The M365 management market has thrived on business owners' lack of understanding about what's actually involved in managing these environments. MSPs use fear, uncertainty, and doubt to justify their pricing:
"Microsoft 365 is complex and requires specialized expertise." (True, but not $50/user/month worth)
"We provide 24/7 monitoring and support." (Basic monitoring tools are largely automated)
"Our team has advanced certifications." (Often referring to entry-level Microsoft certifications)
The Alternative Approach
Smart businesses are realizing there's a better way. Instead of paying MSP premiums, they're finding solutions that provide:
Transparent, fair pricing based on actual value delivered
Direct relationships with Microsoft for licensing
Specialized M365 expertise without the overhead
Proactive management without the markup
What Fair M365 Management Looks Like
Reasonable M365 management should include:
Monthly security reviews and optimizations
Proactive monitoring of security events
User lifecycle management
Compliance monitoring and reporting
Direct access to M365 specialists
Transparent pricing with no hidden fees
At Intero, we believe in fair, transparent pricing that reflects the actual value delivered. Our clients typically save 40-60% compared to traditional MSP pricing while receiving superior service.
Tired of MSP markups? Contact us for a free cost comparison analysis.
