Monthly tool cost per managed endpoint
The single number that shows whether the stack is getting leaner.
IT managed service providers · Software stack audit
Fewer vendors, cleaner margins: an honest review of your MSP stack
MSPs accumulate tools faster than almost any other service business. A PSA, an RMM, two backup products from an acquisition, endpoint protection, EDR, email security, DNS filtering, a documentation platform, a password manager, a quoting tool and a reporting add-on. Each one solved a real problem when it was bought. Together they create per-endpoint costs that quietly eat margin on every agreement.
How it often works today
- Tool costs per endpoint have risen with every vendor price increase, but agreement pricing to clients has not moved in two years.
- Two or three products overlap in function because a new tool was added without retiring the old one, and both still bill monthly.
- Licenses for offboarded client devices and departed staff keep billing because nobody reconciles vendor counts against the RMM.
- Vendor renewals arrive at different times through different distributors, so there is never a moment to review the stack as a whole.
We would review every tool you run internally and resell, map it to the agreements it supports, and show where products overlap, where licenses are unused and where the true cost per seat sits. Sometimes the answer is consolidating vendors, sometimes better integration, and sometimes leaving things alone.
The improved workflow
Build a full inventory
List every subscription, its vendor, distributor, renewal date, license count, cost and which client agreements depend on it, using invoices and vendor portals.
Reconcile licenses to reality
Compare billed counts with active devices in the RMM and active users in the PSA to find paid seats with nothing behind them.
Map overlap and gaps
Group tools by function, such as backup, EDR and email security, to see where you pay twice and where a client promise has no tool behind it.
Recommend keep, cut or connect
For each tool, give a recommendation with cost impact, migration effort and risk, timed to its renewal date so nothing is cut in a rush.
Recalculate agreement cost
Update the per-seat and per-device stack cost, so you know the real margin on each agreement tier and where pricing needs to change.
How we deliver this: AI automation for small business or fractional CTO leadership, scoped in writing and run over 90 days. See pricing or the sample scope.
What we would measure
Unused or orphaned licenses
Usually the fastest savings and the easiest to verify.
Number of vendors and distributors
Fewer relationships means less admin and a stronger position at renewal time.
Gross margin by agreement tier
Ties the audit back to the profitability of what you sell.
Where people stay in control
- No security tool is removed from a client environment without a senior engineer approving the replacement and the cutover plan.
- Changes that affect what clients were promised, such as backup retention or EDR coverage, are reviewed against agreements before anything is cancelled.
- Vendor invoices and contract terms are handled as confidential business records and are not shared outside the engagement team.
Example
Two backup products after an acquisition
For example, an illustrative MSP that acquired a smaller provider is still running both firms' backup products, two EDR vendors and a reporting tool nobody has opened in six months. The audit finds forty billed endpoint licenses with no matching RMM device. The recommendation is to cancel orphaned licenses now, migrate clients to one backup product over the next two renewal cycles, and keep both EDR tools until a contract term ends next spring.
Tools typically involved
What the first 30 days look like
In the first 30 days we would gather invoices and vendor portal access, build the full tool inventory, reconcile license counts against your RMM and PSA, and calculate today's stack cost per endpoint. You would see orphaned licenses within the first few weeks.
Common questions
Will you push us toward a particular vendor?
No. InTheory does not resell MSP tools or take referral fees, so our recommendation is based on your agreements, your team's skills and the cost of switching. Often the advice is to stay with what you have and fix how it is configured, because migrating an RMM or PSA is expensive and disruptive.
How long does an MSP stack audit take?
The inventory and license reconciliation usually fit within the first month, depending on how many vendors and distributors you use. Recommendations follow in the second month. Actual consolidation is timed to renewal dates, so some changes may happen well after the 90-day engagement, with a written plan to follow.
Should we switch PSA platforms?
Maybe, but it is rarely the first move. A PSA migration touches every ticket, agreement, invoice and report you run. We would look first at whether the current platform is badly configured rather than unsuitable. If switching is justified, we would build the business case and migration plan before you sign anything.
The business case
Does it pay for itself?
Illustrative defaults for a managed service provider. Replace them with your numbers.
What this workflow costs today
a month in staff time, before any lost sales
Monthly fee + assumed tools +
Break-even: new clients a month (at first-year value)
Or: staff hours recovered and redeployed
Break-even additional revenue
Value of +1 point of win rate
First 90 days, service fee
Worth a closer lookTest the assumptions
Illustration only, not a forecast or guarantee. Recovered staff time becomes a cash saving only if spending actually declines or the time goes into paid work. Tool costs are an assumption; we replace every number here with yours before recommending a scope.
Software stack audit in other industries
Software stack audit: full guide
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