When it comes to IT services and Managed Service Providers (MSPs), not all proposals are apples to apples. In fact, sometimes it’s more like apples to ribeyes.
If you’ve ever compared IT quotes and wondered why one was half the price of another — this guide is for you.
Let’s break down the common types of IT service models, their pros and cons, and what makes one approach better suited for your business than another.
This is the traditional, pay-as-you-go model — the “IT guy” you call when something breaks.
In this setup, you’re billed hourly plus any parts or expenses. It’s similar to calling Intuit when you get stuck doing your own taxes with TurboTax: you get help only when you reach out, and once the issue is fixed, the engagement ends.
Best suited for:
Small businesses with just a few computers and limited technology dependence — often where the owner still handles most tech decisions.
Pros:
You only pay for what you use
No contracts or long-term commitments
Easy to switch providers
Cons:
No preventative maintenance — issues are fixed only after they happen
Higher risk for downtime, data loss, and cyber threats
Minimal cybersecurity coverage
Cyber insurance claims may be denied due to lack of proactive management
This model is a small step up. You buy a block of support hours in advance at a discounted rate, but you still drive when and how that support is used.
Pros:
Slightly lower hourly rat
No ongoing monthly commitment
No ongoing monthly commitment
Cons:
Still reactive — nothing happens until you request help
This is where the term Managed Services starts to come into play. Your provider installs monitoring tools to remotely maintain your computers and respond to issues as they arise. You’ll pay a monthly fee for support and basic system care.
Pros:
Predictable monthly billing
Remote monitoring and patching
Basic antivirus coverage
Faster response times than a solo IT technician
Access to a team rather than one person
Cons:
Still primarily reactive — issues are addressed after alerts trigger
Limited time for risk or compliance reviews
Cybersecurity is usually basic
May create a false sense of “everything is handled”
Caution:
Make sure you understand what’s included and what’s not — especially around backups, cybersecurity tools, and onsite work.
This model adds structure, strategy, and accountability. Alongside the helpdesk, MSPs include more robust cybersecurity, auditing, and consulting functions — often through a Virtual CIO (vCIO) role.
A mature MSP 2.0 provider will have a process for:
Regular technology alignment reviews
Cybersecurity audits and insurance application assistance
Strategic planning sessions
Pros:
More comprehensive cybersecurity coverage
Documented processes for improvement
Ongoing business and technology planning
Consistent, measurable results
Cons:
Higher monthly cost
Requires participation from leadership for planning
Longer-term contracts are common
Caveats:
Many MSPs say they offer vCIO or auditing, but only a few truly do. Ask:
“How much of your team’s time is dedicated to proactive consulting vs. reactive support?”
This model represents the most advanced level of Managed Services — one that few providers ever reach. It’s not built overnight, and it’s not maintained by chance. It’s the result of years of refining structure, process, and accountability — and it delivers a completely different client experience.
At DaZZee, we’ve spent the last decade perfecting this model. It’s exponentially more structured and process-driven than earlier MSP approaches. Every team member is assigned to a defined service delivery area — not a “jack-of-all-trades” role — which allows for true subject-matter expertise in every client interaction.
Each department has clear key performance indicators (KPIs) measured daily. This structure provides consistency, accountability, and a predictable experience for every client request and project.
In the MSP 3.0 model, roles aren’t blended — they’re specialized and aligned to outcomes:
Auditing & Alignment Teams
Dedicated engineers perform regular audits to identify risk, liabilities, and misalignments with best practices. These reviews are documented and measured using formal scorecards, ensuring continuous improvement and visible progress.
vCIO (Virtual Chief Information Officer)
The vCIO role evolves beyond traditional reporting. Rather than spending time recapping tickets or patch summaries, the focus is on innovation, strategic planning, and budgeting. These sessions are centered around your business goals — how technology can increase efficiency, strengthen competitiveness, and drive growth.
Security, Backup, and Standardization Teams
Daily tasks such as patching, backups, and cybersecurity maintenance aren’t left to chance or handled “when time allows.” Dedicated teams ensure these foundational tasks are executed consistently, keeping your environment stable and secure.
Professional Services (Projects) Team
This group manages new implementations with a focus on documentation, timelines, and successful handoffs — ensuring every solution is delivered completely and transferred seamlessly to your ongoing support team.
How This Impacts You
This structure creates a measurable reduction in reactive issues, faster response times, and more predictable operations.
By separating responsibilities, every part of your IT environment is managed by specialists who have the time, tools, and processes to excel in their focus areas.
Over time, you’ll see:
Fewer recurring issues
aster resolutions
More accurate forecasting and planning
Greater confidence in your technology investments
What Makes DaZZee’s MSP 3.0 Different
Because our foundation is built on structure and measurement, we’re able to deliver next-generation services that most MSPs simply can’t sustain:
Dedicated Business Automation and AI Implementation Team — helping you integrate automation and AI into everyday operations to reduce manual work and increase efficiency.
Business Intelligence and Data Analytics Team — enabling you to turn data into decisions through clear reporting and insight dashboards.
Continuous Innovation and Strategic Partnership — focusing on how technology can help your business not just run, but compete and grow.
These capabilities don’t exist by accident — they exist by design. Our framework allows us to deliver consistent, measurable outcomes while continually expanding the services we can provide to our clients.
Significantly fewer issues and faster resolution times
World-class customer service supported by specialized teams
Access to advanced technology services: AI, automation, and analytics
True strategic partnership focused on business outcomes
Increased efficiency, productivity, and profitability
The Cons:
Higher cost compared to lower-tier MSP models — but the ROI is measurable
Requires leadership engagement and commitment to process
Best suited for organizations that view technology as a strategic investment, not just an expense
Who MSP 3.0 Is For
This model is ideal for growing or mature organizations that value process, structure, and measurable improvement — businesses that want to get ahead of issues, not chase them.
If your organization is ready to treat technology as a competitive advantage, MSP 3.0 is where you belong.
6 Co-Managed IT Services
If you already have an internal IT person or small team, a co-managed approach might be your best fit and it can apply to any of the previous models as an option.
This model combines your in-house expertise with the depth and tools of an MSP — giving your internal staff access to enterprise-grade systems, specialized experts, and protection against single points of failure.
Benefits include:
Access to advanced tools and cybersecurity expertise
Reduced risk if an internal IT member leaves or becomes unavailable
