Per-user, per-device or per-tenant: how MSP management tools are priced
4 min readMarkdown version
Per-user pricing scales your cost with your client's headcount, which means your platform bill grows every time a client hires, whether or not your work grows with it. Per-tenant pricing is a fixed cost per customer regardless of seat count, so the cost of managing a client is flat and predictable. Per-tenant is cheaper for every client above a break-even headcount, which you can calculate directly: divide the flat per-tenant fee by the per-user rate.
The three models
Almost every multi-tenant management platform prices one of three ways, and the choice has more effect on an MSP's margin than any feature comparison.
- Per user: A rate multiplied by every managed user or named seat. Costs rise with your client's headcount.
- Per device or per endpoint: A rate per managed machine. Common in RMM. Costs rise with device count, which for desktop workloads tracks headcount closely.
- Per tenant: A flat rate per customer organization. Costs rise only when you take on a new client.
Work out your own break-even
The comparison is one division. Break-even headcount equals the flat per-tenant fee divided by the per-user rate. Below that number the per-user tool is cheaper; above it, flat wins, and the gap widens with every seat.
Run it against your actual client list rather than an average. MSP fleets are usually lopsided: a handful of large clients and a long tail of small ones. The large clients are where a per-user model quietly takes the margin, and they are also the ones you least want to reprice.
| Client seats | Flat per tenant | At $3 per user | At $12 per user |
|---|---|---|---|
| 10 | Unchanged | $30 | $120 |
| 25 | Unchanged | $75 | $300 |
| 50 | Unchanged | $150 | $600 |
| 100 | Unchanged | $300 | $1,200 |
| 250 | Unchanged | $750 | $3,000 |
The part that shows up in your margin, not your invoice
A per-user platform fee is a variable cost sitting underneath a service you probably sell at a fixed per-seat price. When a client grows, your revenue and your platform cost both rise, so the margin percentage holds but the absolute exposure grows. When a client shrinks, the tool bill often does not fall until the next true-up.
There is a second-order effect worth thinking about before you renew: a per-user fee is easy to see on an invoice and the operational time a tool saves is not, which makes it tempting to leave the smallest clients off the platform entirely. Those are often the ones where the tooling would save the most relative to their size.
What to compare besides the unit
Pricing model is not the whole cost. Before switching, check the things that turn a cheap-looking quote into an expensive year.
- Minimums and commitments: A low per-user rate with a 500-seat floor is a flat fee with extra steps.
- What counts as a user: Named, active, licensed or enabled accounts are different numbers. Shared mailboxes and service accounts have started billable arguments.
- Feature gating: Whether the capability you are buying it for is in the tier you are being quoted.
- Whether it reduces spend elsewhere: A platform that cuts Azure consumption has a different net cost than one that only adds a bill. Ask what the reduction is based on, and whether the number you are shown is measured or modeled.
How rugged.sh prices
rugged.sh charges per customer tenant: $10 a month per tenant for Microsoft 365 management, $50 for Azure including AVD and Windows 365, or $60 for both. There is no per-user component and no minimum tenant count, and the free tier covers one tenant and five users with no time limit, so the arithmetic can be checked on a real client first. The full breakdown is on the pricing page, and the worked comparison across client sizes is on the compare page.
Questions people ask
- How do I calculate whether flat per-tenant pricing is cheaper for my MSP?
- Divide the flat per-tenant fee by the per-user rate you are quoted to get a break-even headcount, then count how many of your clients are above it. For a $50 flat fee against a $12 per-user rate, break-even is about four seats, so nearly every client is cheaper on the flat model.
- Does per-tenant pricing mean fewer features than per-user pricing?
- It is a billing unit, not a capability tier. What matters is which features are included in the price you are quoted, so compare the feature list at the specific tier rather than assuming the pricing model implies anything about it.
- What is the catch with flat per-tenant pricing?
- It is worse value for very small tenants. A client with three users on a per-user tool may cost less than a flat fee, which is why a free tier for a single small tenant matters when you are evaluating.