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Glossary

Managed Service

In short

A managed service is an arrangement where an external provider runs a system day to day rather than only repairing it when it breaks. You pay a fixed monthly fee instead of hours. What separates it from hourly billing is the incentive: under a managed service, the provider earns by nothing going wrong.

The incentive is the whole point

Under hourly billing, revenue appears when something stops working. That imputes no bad faith to anyone — it simply means prevention does not pay for the provider.

Under a managed service it inverts: every avoided incident is margin. So monitoring, patching and documentation happen before something fails.

What the contract has to state

Three things, or it is a flat fee without a commitment. Response time: within what period does someone get back to you? Coverage: which hours are included, what does out-of-hours cost? Scope: what is in, what is billed separately?

Watch the third especially. A low base price with many exclusions costs more in the end than a higher one with a clear scope — you just do not notice until the third extra line item.

When it pays off for an SME

Usually from around ten workstations — not because of the number but because past that point nobody does IT «on the side» any more. The second criterion is dependency: a business that stops when IT stops for a day needs prevention, not an emergency rate.

The honest comparison is not flat fee against hours but flat fee against hours plus downtime. Downtime appears on no invoice and is usually the larger figure.

How we handle it

ALPENIQ IT works with a fixed fee, a stated scope and one contact who knows the setup. What is not included is stated up front — not on the invoice.

How we work: managed IT, IT outsourcing and IT support.

Where this sits with us

Last reviewed: 2026-08-25

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