Question 1

What's a healthy gross margin for managed services?

Accepted Answer

A healthy gross margin for MSP managed services is 65-75%. Below 60% means your stack costs too much or you're underpriced. Above 80% usually signals underdelivery or impending churn.

Question 2

How do I calculate my effective hourly rate?

Accepted Answer

Total MRR from a client divided by total hours spent on work covered by that agreement. Support tickets, QBRs, and admin time count. Projects typically don't; they're priced separately. Most MSPs are shocked when they do this math. A $150/user client often nets $40/hour when you count everything included in the agreement.

Question 3

Should I price per user or per device?

Accepted Answer

Per user is cleaner for forecasting and scales better with remote work. Per device made sense when employees had one workstation. Now they have three. Per user wins unless you're supporting manufacturing floors or labs.

Question 4

What's the average revenue per endpoint for MSPs?

Accepted Answer

$100-200/endpoint/month for full stack. Lower end is basic RMM/AV. Higher end includes security stack, backup, vCIO, and compliance. Know your number and trend it monthly.

Question 5

What percentage of MSP revenue should be recurring?

Accepted Answer

70-80% minimum. Higher is better for valuation and stability. Below 60% means you're running a project shop that happens to do some managed services. That's a harder business to scale and sell.

Question 6

What pricing models work best for MSPs?

Accepted Answer

Per-user all-inclusive is the cleanest. Tiered packages (Good/Better/Best) work for sales teams. Per-device still works for infrastructure-heavy clients. Avoid hourly - it punishes efficiency and creates misaligned incentives.

Question 7

Should MSPs charge full price for contractors?

Accepted Answer

MSPs should charge full price for contractors when the contractor has normal access, device support, helpdesk rights, onboarding, offboarding, and security coverage. If the support scope is lower, create a limited-access identity or app-only line item instead of guessing at a fractional user rate.

Question 8

What is a limited-access user in MSP pricing?

Accepted Answer

A limited-access user is a named identity with narrower support expectations: usually account setup, MFA, approved app access, and offboarding, but no managed device support or direct helpdesk access. The quote should list those limits clearly so the lower price has a matching lower scope.

Question 9

What should MSPs ask before pricing contractor users?

Accepted Answer

Ask whether the contractor has email, MFA, VPN, managed devices, business app access, ticket rights, after-hours support, compliance scope, and a clear offboarding owner. Those answers decide the support class better than the payroll label.

Question 10

Is fractional user pricing a good idea for MSPs?

Accepted Answer

Fractional user pricing usually creates renewal fights because every user becomes debatable. Support classes are cleaner: full supported user, limited-access identity, or device/app-only exception. Price the class and write the inclusions and exclusions into the quote.

Question 11

How do I calculate the floor price for managed services?

Accepted Answer

Add the monthly cost to serve the client, including labor, tools, shared service overhead, and risk buffer. Then divide that cost by one minus your target gross margin. If the client costs $5,000 per month to support and you need 50% gross margin, the floor price is $10,000 per month.

Question 12

What labor cost should I use when pricing MSP agreements?

Accepted Answer

Use burdened labor cost, not salary divided by 2,080 hours. Include payroll taxes, benefits, PTO, training, management time, and realistic utilization. A paid hour is not the same as a usable delivery hour.

Question 13

Should tool costs be included in managed services pricing?

Accepted Answer

Yes. Tools required to deliver the service belong in the cost to serve. RMM, EDR, backup, PSA, documentation, remote access, and reporting costs should be allocated by user, device, tenant, or client, depending on how the cost is incurred.

Question 14

Is ScreenConnect or Splashtop better for MSPs?

Accepted Answer

ScreenConnect is usually better for ConnectWise-standardized MSPs that need deeper technician controls, session recording, command line access, and unlimited unattended agents on support plans. Splashtop is usually better when lower starting cost, endpoint coverage, mixed-stack portability, or Mac-heavy support matters more.

Question 15

Which is cheaper for MSPs, ScreenConnect or Splashtop?

Accepted Answer

Splashtop has the lower public starting price for Remote Support SOS, while ScreenConnect Standard costs more per concurrent tech but includes unlimited unattended access agents. The cheaper MSP answer depends on technician concurrency, managed endpoint count, and required security controls.

Question 16

Does Splashtop limit concurrent sessions like ScreenConnect?

Accepted Answer

ScreenConnect publishes session limits by plan, with Standard at up to 3 sessions per tech and Premium at up to 10. Splashtop positions Remote Support around concurrent user licensing and says it does not limit connections per user, but MSPs should validate the exact plan before buying.

Question 17

Should an MSP keep a second remote access tool?

Accepted Answer

An MSP should keep a second remote access tool when it covers real gaps such as RMM remote control failures, Mac support, vendor-assisted sessions, after-hours access, or client-specific support cases. It should not stay if nobody owns stale agent review, technician access cleanup, audit history, and billing.

Question 18

Is Splashtop cheaper than ScreenConnect for MSPs?

Accepted Answer

Usually yes on entry price. Splashtop's Remote Access Solo starts at $6 per month billed annually, Pro at $8.25 per user, Performance at $13 per user, and SOS at $22 per concurrent user license. ScreenConnect starts at $30 per month billed annually for One and $45 per concurrent tech for Standard, but that concurrency and support-first feature set can be cheaper once you price real technician usage.

Question 19

Which is better for after-hours MSP support?

Accepted Answer

ScreenConnect is usually the safer default for after-hours support because Standard includes Backstage, remote command line, Wake-on-LAN, session recording, and mobile guest support. Splashtop can still work, especially in SOS or Enterprise, but you should verify admin elevation, session logging, and how your desk launches the session from a ticket.

Question 20

Should an MSP use both ScreenConnect and Splashtop?

Accepted Answer

Sometimes. If one tool is your technician support layer and the other is your lower-cost remote access layer, keeping both can be rational. The mistake is paying for two tools that solve the same motion because nobody defined which one owns support and which one owns user access.

Question 21

Can Splashtop handle UAC and admin elevation for MSP work?

Accepted Answer

Yes, Splashtop SOS can raise a Windows session to admin and interact with UAC, which matters for installs and privileged fixes. That does not make every Splashtop plan equal, so test the exact tier and workflow your techs will use.

Question 22

Which should an MSP pick if they want one default remote tool?

Accepted Answer

Pick ScreenConnect if technician-led support, concurrency, and deep session control are the priority. Pick Splashtop if budget, named-user access, and lighter-weight support workflows matter more. If your team cannot explain the difference between remote access and remote support, fix that first.

Question 23

What should I do when an existing MSP client is below my floor price?

Accepted Answer

Segment the client before raising price. If the gap is caused by scope creep, tool changes, or added users, bring renewal options: increase price, reduce scope, move project work out of the monthly fee, or clean up the environment to reduce support load. If the client is a bad fit, use tighter boundaries or plan a controlled offboarding.

Question 24

What was Kaseya high watermark pricing?

Accepted Answer

Kaseya high watermark pricing tied billing to a prior peak usage level instead of only current usage. If an MSP's endpoint or seat count dropped later, the bill could still reflect the higher commitment until the contract or billing terms changed.

Question 25

What replaces Kaseya high watermark pricing for Datto RMM, Autotask, and SaaS Protection?

Accepted Answer

Kaseya said Datto RMM, Autotask, and SaaS Protection are moving to committed minimum quantity plus variable consumption. MSPs are billed for the committed minimum or calculated usage, whichever is higher, so the minimum still needs to match the real client base.

Question 26

What should MSPs audit before Kaseya's June pricing transition?

Accepted Answer

MSPs should audit active endpoint counts, committed minimum quantities, product-level license pools, last 90 days of usage, and client-billed counts. The goal is to catch stale licenses, underbilled clients, and renewal commitments before they turn into margin leaks.

Question 27

Which is better for MSP backups, Datto BCDR or Acronis Cyber Protect?

Accepted Answer

Datto is better when you want appliance-first BCDR with predictable restore behavior and flat-fee economics. Acronis is better when you want backup plus security and endpoint management in one platform and can handle more configuration.

Question 28

Is Datto BCDR still worth it after Kaseya bought Datto?

Accepted Answer

Yes, if you already live in the Kaseya stack and want the shortest path to recovery certainty. No, if support friction, bundle pressure, or platform lock-in now cost more than the restore benefits.

Question 29

Is Acronis Cyber Protect Cloud cheaper than Datto BCDR?

Accepted Answer

Not automatically. Acronis can start with a lower entry point because it prices per workload or per GB, but add-on packs and DR can close the gap. Datto is usually easier to budget if you want flat-fee pricing.

Question 30

How hard is it to switch from Datto to Acronis?

Accepted Answer

It is a real migration, not a toggle. Plan for a parallel run, fresh agent deployment, restore validation, and a client-by-client cutover because existing recovery history does not move cleanly.

Question 31

What is the best MSP backup solution in 2026?

Accepted Answer

The best MSP backup solution depends on the recovery model and billing shape you can support. Datto is strongest for appliance-backed BCDR, Acronis for flexible backup plus cyber protection packaging, and Axcient for cloud-first BCDR with pooled fair-use storage.

Question 32

How should an MSP compare Datto BCDR vs Acronis?

Accepted Answer

Compare Datto and Acronis by recovery design, not only by feature count. Datto is simpler to position when clients need appliance-backed local recovery. Acronis is a better fit when you want backup, DR, and security services in one service-provider platform.

Question 33

Is Axcient better than Datto for MSP backups?

Accepted Answer

Axcient can be better when you want Direct-to-Cloud, BYOD, BYOC, or hybrid BCDR and can manage fair-use storage limits. Datto is usually better when the client needs a packaged appliance-backed recovery story with fast local restore.

Question 34

How should MSPs compare backup pricing?

Accepted Answer

MSPs should compare backup pricing by protected workloads, protected data size, retention, RTO, RPO, recovery testing, contract terms, and overage rules. A cheap backup quote can still lose margin if storage growth or recovery labor is not priced.

Question 35

What are good Datto BCDR alternatives for MSPs?

Accepted Answer

Acronis and Axcient are common Datto BCDR alternatives for MSPs, but they solve different margin problems. Acronis fits broader cyber protection packaging. Axcient fits cloud-first or mixed deployment models with public fair-use storage rules.

Question 36

Is Dropsuite or SkyKick better for MSP backup?

Accepted Answer

Dropsuite is usually better when the MSP wants a current SaaS backup and archive standard across Microsoft 365 or Google Workspace. SkyKick can still be better when old SkyKick backup history, migration workflows, or ConnectWise-aligned vendor strategy make switching risky.

Question 37

When should an MSP choose Dropsuite over SkyKick?

Accepted Answer

Choose Dropsuite over SkyKick when you are starting fresh, standardizing Microsoft 365 backup, or cleaning up client takeover backup scope. Confirm retention, archive add-ons, deleted-user handling, and restore testing before moving clients.

Question 38

What is the SkyKick Cloud Backup migration tail?

Accepted Answer

The migration tail is the old backup history that may need to stay accessible after moving a client from SkyKick to another backup tool. MSPs should confirm export options, minimum license requirements, deleted-user handling, and who pays for old-data access.

Question 39

How should MSPs prove Microsoft 365 backup restores work?

Accepted Answer

MSPs should run sample restores across Exchange, OneDrive, SharePoint, Teams, and deleted-user scenarios, then record the workload, restore target, technician, date, and result. A green backup status is not the same thing as client-ready restore proof.

Question 40

Where do MSP SaaS backup margins leak?

Accepted Answer

SaaS backup margins leak through archive add-ons, retention exceptions, offboarding labor, restore tests, distributor billing cleanup, and vendor migration work. Put those rules in the package instead of hiding them in support time.

Question 41

Is Hornetsecurity or Keepit better for MSPs?

Accepted Answer

Hornetsecurity is usually better when the MSP already sells Hornetsecurity's Microsoft 365 security and management stack and needs backup for common M365 workloads plus Entra users and groups. Keepit is usually better when Entra ID restore depth is the proof point, including policies, app registrations, selected Intune data, BitLocker keys, and logs.

Question 42

When does Hornetsecurity 365 Total Backup fit an MSP?

Accepted Answer

Hornetsecurity 365 Total Backup fits when the MSP wants Microsoft 365 backup tied to a broader Hornetsecurity relationship, with multi-tenant management, automatic backups, unlimited storage messaging, and Entra users and groups in scope.

Question 43

When does Keepit Entra ID backup fit an MSP?

Accepted Answer

Keepit Entra ID backup fits when the client needs proof for identity objects beyond users and groups, such as roles, service principals, app registrations, Conditional Access policies, selected Intune policies, BitLocker keys, Windows LAPS, audit logs, and sign-in logs.

Question 44

What restore proof should an MSP show for Entra ID backup?

Accepted Answer

MSPs should show the restored object, restore target, test date, technician, outcome, screenshots or job evidence, and relationship details such as group memberships, role assignments, owners, licenses, and policy behavior.

Question 45

Should Microsoft 365 backup appear in a client QBR?

Accepted Answer

Yes. A client QBR should show Microsoft 365 backup health, restore-test evidence, covered workloads, excluded identity objects, retention status, and any open decisions. A green backup dashboard is not enough proof by itself.

Question 46

Is NAKIVO or Veeam better for MSP backups?

Accepted Answer

NAKIVO is usually the better fit when the MSP wants a simpler, lower-friction backup stack for mixed environments and can keep recovery scope narrow. Veeam is usually the better fit when the MSP wants deeper service-provider licensing, monthly usage reporting, and more control over backup architecture.

Question 47

Does NAKIVO cost less than Veeam for MSPs?

Accepted Answer

NAKIVO often looks cheaper on the license line because its MSP pages emphasize no contracts, no upfront fees, and flexible per-workload pricing. But MSPs still have to pay for storage, immutability, monitoring, restore tests, and support labor, so the real cost can flip fast.

Question 48

Is NAKIVO good enough for Microsoft 365 backup?

Accepted Answer

NAKIVO can be a fit for Microsoft 365 backup when the client wants a simpler SaaS backup stack and the MSP is comfortable owning storage and restore validation. Veeam usually fits better when the MSP wants that same reporting model across a broader service-provider platform.

Question 49

Is Veeam or Axcient better for MSP backups?

Accepted Answer

Veeam is usually better when the MSP wants control over backup architecture, repositories, recovery design, and service-provider operations. Axcient is usually better when the MSP wants a more packaged BCDR model with Direct-to-Cloud, appliance, hybrid options, and public fair-use storage rules.

Question 50

What infrastructure costs should MSPs include with Veeam?

Accepted Answer

MSPs should price Veeam beyond the license. Include repositories, object storage, immutability, backup servers, proxies, monitoring, patching, restore testing, usage reporting, and engineer time for recovery runbooks.

Question 51

How should MSPs handle Axcient fair-use overages?

Accepted Answer

MSPs should measure protected data before quoting Axcient, compare it with the fair-use pool, and name what happens when storage, Virtual Office usage, or data exports exceed policy limits. Fair use should be a client term, not an invoice surprise.

Question 52

What restore proof should an MSP show for BCDR?

Accepted Answer

MSPs should show which systems are protected, when the last restore test ran, what type of restore was tested, whether the client accepted the RTO and RPO, and what labor is included during a live incident.

Question 53

Is Cove or Veeam better for MSP backup services?

Accepted Answer

Cove is usually better when the MSP wants a cloud-first backup service with included private-cloud storage, simpler server or Microsoft 365 packaging, and recovery testing close to the product. Veeam is usually better when the MSP wants more control over repositories, storage targets, service-provider reporting, and custom recovery design.

Question 54

How should MSPs compare Cove and Veeam cloud storage costs?

Accepted Answer

Compare Cove and Veeam by storage responsibility, not just license price. Cove includes private-cloud storage in its public packaging, while Veeam makes the MSP design and price repositories, object storage, retention, immutability, growth, egress assumptions, and recovery testing.

Question 55

Should MSPs use Cove or Veeam for Microsoft 365 backup?

Accepted Answer

Use Cove when Microsoft 365 backup should sit beside server and workstation backup in one backup dashboard with included storage and simple per-user packaging. Use Veeam when Microsoft 365 backup belongs inside a broader Veeam service-provider operation with per-user licensing, restore portal needs, and usage reporting discipline.

Question 56

Which has better restore proof, Cove or Veeam?

Accepted Answer

Cove packages automated recovery testing closer to the backup service, which can make restore proof easier to sell and explain. Veeam can support strong restore proof too, but the MSP must design the test cadence, repositories, reports, recovery targets, and runbooks that prove recovery works.

Question 57

What should an MSP quote include for Cove or Veeam?

Accepted Answer

The quote should include protected workloads, protected data size, growth assumptions, retention, restore-test cadence, RTO, RPO, Microsoft 365 scope, local-copy rules, fair-use or storage assumptions, emergency labor, exclusions, and price-change triggers.

Question 58

Is Wasabi or Backblaze B2 better for MSP backups?

Accepted Answer

Wasabi is usually better when backup data is steady, retention is longer than 90 days, and monthly downloads stay at or below active storage. Backblaze B2 is usually better when restore testing or disaster recovery could create larger download months because it includes free egress up to 3x average monthly storage.

Question 59

How does Wasabi free egress affect MSP backup pricing?

Accepted Answer

Wasabi's free egress policy works best when monthly downloads are less than or equal to active storage. If a client regularly downloads more than they store, the use case may fall outside Wasabi's published guideline, so MSPs should document restore testing and mass recovery assumptions before quoting.

Question 60

How does Backblaze B2 egress pricing work for MSP restores?

Accepted Answer

Backblaze B2 includes free egress up to 3x average monthly storage, then charges a posted overage rate for additional egress. That makes B2 easier to quote for larger restore tests or disaster recovery months, but MSPs still need to price the labor around the restore.

Question 61

What should MSPs check for Object Lock on Wasabi and Backblaze B2?

Accepted Answer

MSPs should confirm whether the bucket needs bucket-level compliance, object-level Object Lock, governance mode, compliance mode, legal hold, and backup application support. Wasabi Object Lock must be enabled when the bucket is created, while Backblaze B2 can enable Object Lock on an existing bucket but cannot disable it afterward.

Question 62

What should an MSP backup storage quote include?

Accepted Answer

An MSP backup storage quote should include active data size, growth assumptions, retention, deleted-data behavior, restore test cadence, full recovery download assumptions, immutability mode, egress boundaries, and who pays for recovery labor. Storage price alone is not enough.

Question 63

Is Veeam or Acronis better for MSP backups?

Accepted Answer

Veeam is usually better when the MSP wants control over backup architecture, repositories, VM-heavy recovery design, and service-provider reporting. Acronis is usually better when backup belongs inside a broader cyber protection package with endpoint, SaaS, storage, DR, and security services in one MSP platform.

Question 64

Should MSPs use Veeam or Acronis for Microsoft 365 backup?

Accepted Answer

Use Veeam when Microsoft 365 backup should fit a service-provider backup operation with Exchange, SharePoint, OneDrive, Teams, restore portal, and usage reporting discipline. Use Acronis when Microsoft 365 backup is part of a broader Cyber Protect Cloud service. Either way, define deleted-user handling, restore authorization, retention, and evidence.

MSP FAQ: Expert Answers for Managed Service Providers

Quick Answers

Pricing & Margins

Quoting & Sales

vCIO & Strategic Services

Client Roadmapping

CPQ & Automation

Revenue & Growth

Retention & Churn Signals

GRC & Compliance

Microsoft 365

Ready to put these answers into action?

MSP FAQ: Expert Answers for Managed Service Providers

Quick Answers

What's a healthy gross margin for managed services?

How long should an MSP quote take to create?

What does a vCIO actually do?

What is CPQ software for MSPs?

Pricing & Margins

What's a healthy gross margin for managed services?

How do I calculate my effective hourly rate?

Should I price per user or per device?

What's the average revenue per endpoint for MSPs?

What percentage of MSP revenue should be recurring?

What pricing models work best for MSPs?

Should MSPs charge full price for contractors?

What is a limited-access user in MSP pricing?

What should MSPs ask before pricing contractor users?

Is fractional user pricing a good idea for MSPs?

How do I calculate the floor price for managed services?

What labor cost should I use when pricing MSP agreements?

Should tool costs be included in managed services pricing?

Is ScreenConnect or Splashtop better for MSPs?

Which is cheaper for MSPs, ScreenConnect or Splashtop?

Does Splashtop limit concurrent sessions like ScreenConnect?

Should an MSP keep a second remote access tool?

Is Splashtop cheaper than ScreenConnect for MSPs?

Which is better for after-hours MSP support?

Should an MSP use both ScreenConnect and Splashtop?

Can Splashtop handle UAC and admin elevation for MSP work?

Which should an MSP pick if they want one default remote tool?

What should I do when an existing MSP client is below my floor price?

What was Kaseya high watermark pricing?

What replaces Kaseya high watermark pricing for Datto RMM, Autotask, and SaaS Protection?

What should MSPs audit before Kaseya's June pricing transition?

Which is better for MSP backups, Datto BCDR or Acronis Cyber Protect?

Is Datto BCDR still worth it after Kaseya bought Datto?

Is Acronis Cyber Protect Cloud cheaper than Datto BCDR?

How hard is it to switch from Datto to Acronis?

What is the best MSP backup solution in 2026?

How should an MSP compare Datto BCDR vs Acronis?

Is Axcient better than Datto for MSP backups?

How should MSPs compare backup pricing?

What are good Datto BCDR alternatives for MSPs?

Is Dropsuite or SkyKick better for MSP backup?

When should an MSP choose Dropsuite over SkyKick?

What is the SkyKick Cloud Backup migration tail?

How should MSPs prove Microsoft 365 backup restores work?

Where do MSP SaaS backup margins leak?

Is NAKIVO or Veeam better for MSP backups?

Does NAKIVO cost less than Veeam for MSPs?

Is NAKIVO good enough for Microsoft 365 backup?

Is Veeam or Axcient better for MSP backups?

What infrastructure costs should MSPs include with Veeam?

How should MSPs handle Axcient fair-use overages?

What restore proof should an MSP show for BCDR?

Is Cove or Veeam better for MSP backup services?

How should MSPs compare Cove and Veeam cloud storage costs?

Which has better restore proof, Cove or Veeam?

What should an MSP quote include for Cove or Veeam?

Is Wasabi or Backblaze B2 better for MSP backups?

How does Wasabi free egress affect MSP backup pricing?

How does Backblaze B2 egress pricing work for MSP restores?

What should MSPs check for Object Lock on Wasabi and Backblaze B2?

What should an MSP backup storage quote include?

Is Veeam or Acronis better for MSP backups?

Which has better restore proof, Veeam or Acronis?

What should an MSP quote include for Veeam or Acronis?

What are good Veeam alternatives for MSPs?

Is Acronis or Cove better for MSP backup services?

How should MSPs compare Acronis and Cove storage pricing?

Which has better restore proof, Acronis or Cove?

What should an MSP quote include for Acronis or Cove?

Is MSP360 or Acronis better for MSP backup services?

How should MSPs compare MSP360 and Acronis storage options?

Which has better restore proof, MSP360 or Acronis?

What should an MSP quote include for MSP360 or Acronis?

How does Azure CSP billing work for MSPs?

How do MSPs avoid Azure consumption spikes hurting margin?

Should MSPs include Azure reservations or Savings Plans in client quotes?

What is the best markup model for MSP Azure billing?

What Azure cost alerts should MSPs set for clients?