In-House Sysadmin vs Managed Services: the True Cost

Hire a full-time system administrator or outsource? For a handful of servers, the answer is clear: managed services cost up to 10 times less.

Cost comparison for managing 3 servers:

~7,900 EUR/mo
Senior sysadmin
(no 24x7 on-call support!)
vs
~490 EUR/mo
Outsourced managed services
(3 servers, 24x7 on-call included)

The true cost of a system administrator

Note on salary data: The figures below are based on the French job market (2024-2026). In France, employer contributions add approximately 45% on top of gross salary. While exact numbers vary by country, the cost ratio between hiring in-house vs outsourcing remains comparable internationally.

Average sysadmin salaries in France (2024-2026)

Level Gross salary/year Employer contributions (~45%) Total employer cost
Junior (0-2 years) 38,000 EUR +17,100 EUR 55,100 EUR
Mid-level (3-5 years) 50,000 EUR +22,500 EUR 72,500 EUR
Senior (5-8 years) 65,000 EUR +29,250 EUR 94,250 EUR
Expert / Lead (8+ years) 75,000 EUR +33,750 EUR 108,750 EUR

Hidden costs of hiring

Recruitment: 3,000 to 10,000 EUR (agency fees, job ads, time spent)
Training: 2,000 to 5,000 EUR/year (certifications, courses)
Tools & licences: 1,000 to 3,000 EUR/year (software, subscriptions)
Turnover: 6-9 months of salary if they leave (very common in IT)

In France, a senior sysadmin costs approximately:

~7,900 EUR / month

(94,250 EUR / 12 months, excluding hidden costs)

And 24x7 on-call support? That costs extra!

A salaried sysadmin works 35-40 hours/week. Who responds at night? On weekends? On public holidays?

For reliable 24x7 on-call support in-house:

  • -- 4 people minimum in rotation (to cover leave, sick days)
  • -- On-call compensation: ~3,500 EUR/month (see the detailed breakdown)
  • -- Total: ~11,400 EUR/month for one sysadmin + on-call coverage

Our managed services include 24x7x365 on-call support in the package.

Managed Services vs 1 Full-Time Sysadmin

Comparison basis: 1 senior sysadmin = 7,900 EUR/month (140h/month capacity)

Package Hours included Monthly price vs 1 FTE
1 server 1h/month 150 EUR -98%
5-server pack 2h/month 600 EUR -92%
10-server pack 3h/month 900 EUR -89%
20-server pack 5h/month 1,600 EUR -80%
20+ servers Custom Custom quote Contact us

All packages include:

  • -- 24x7x365 on-call, 4h response time SLA
  • -- Monitoring & alerting
  • -- Security updates

Additional hours:

  • -- 120 EUR/h (billed per half-hour)
  • -- Pooled across your fleet

In practice:

Unless you run a highly technical stack, 5h/month for 20 servers is generally more than enough.

You handle the "build"? We cover the 24x7.

Already have a sysadmin who designs architecture and manages projects during the day? Combine 1 FTE (7,900 EUR) + outsourced on-call (3,450 EUR) = 11,350 EUR/month for 140h of capacity + 24x7 coverage.

Fleet on-call, 4h response time SLA

3,450 EUR/month - 24x7x365 coverage

Fleet on-call, 1h response time SLA

6,000 EUR/month - Guaranteed intervention within 1h

The real calculation

20-server pack (1,600 EUR): Still cheaper than one FTE (7,900 EUR), even with only 5h included. Need more hours? Even at 20h/month extra (2,400 EUR), you stay at 4,000 EUR -- half the cost of a full-time hire.

100% in-house 24x7? You need 4 sysadmins = 4 x 7,900 EUR = 31,600 EUR/month for 640h of capacity. Do you really need that much?

Beyond cost: other advantages

Multidisciplinary team

A single sysadmin cannot master everything. With managed services, you get access to a complete team (systems, networking, security, databases).

Guaranteed availability

No holidays, no sick leave, no surprise resignations. Managed services ensure permanent service continuity.

Instant scalability

Need to add 5 servers? No need to hire. Managed services scale with your growth without delay.

No single point of failure

No more "bus factor". If your sysadmin leaves, they take their knowledge with them. With us, documentation and procedures are shared across the team.

How much does downtime cost you?

Calculate the real financial impact of one hour of downtime

Calculate

Save up to 98% on server management

Managed services from 70 EUR/month (business hours) or 150 EUR/month (24x7) per server. Maintenance, monitoring and on-call support included.

FAQ: In-House Sysadmin vs Managed Services

Detailed cost comparison and HR aspects to make the right decision

What is the true cost of in-house sysadmin vs managed services?

In-house sysadmin:

  • Gross salary: 45-65k EUR/year (junior to mid-level)
  • Employer contributions +45%: 20-29k EUR/year
  • Continuing training: 3-8k EUR/year
  • Tools and licenses: 2-5k EUR/year
  • HR management: indirect cost 10-15%
  • Total: 70-100k EUR/year minimum

Managed services:

  • Business hours: 70 EUR/month = 840 EUR/year per server
  • 24x7: 150 EUR/month = 1,800 EUR/year per server
  • All-inclusive: maintenance, monitoring, on-call, expertise

Ratio: for 5 servers (9,000 EUR/year), MSP costs 8 to 11 times less than a junior sysadmin.

How to ensure 24/7 availability with in-house sysadmin?

The challenge: Impossible with just 1 person. Must cover:

  • Vacation: 5 weeks/year minimum
  • Paid time off: 10-15 days/year
  • Sick leave: average 10 days/year
  • Nights and weekends: 70% of the time
  • Resignations and transitions

In-house team solution: 3 to 4 FTE minimum in rotation = 210-320k EUR/year

MSP solution:

  • Complete team always available
  • No service interruption
  • 1,800 EUR/year per server in 24x7
  • Savings: 99% on 5 servers

Multi-domain expertise vs generalist: what impact?

In-house generalist sysadmin:

  • Skills across 5-6 technologies
  • Limited depth in each domain
  • Learning curve on new issues
  • Risk of errors on complex topics (security, performance)

Specialized MSP team:

  • Dedicated experts: systems, networks, security, databases
  • Virtualization (Proxmox, VMware), containerization (Docker, Kubernetes)
  • Advanced monitoring, automation, scripting
  • Shared experience across hundreds of servers

For equivalent in-house: 4-5 senior profiles = 300-400k EUR/year

What happens when the sysadmin is absent?

Risks:

  • Vacation or sick leave: unsupervised infrastructure during absence
  • Resignation: loss of business knowledge, 2-4 month recruitment period
  • Accident or long-term illness: HR and technical emergency
  • "Bus factor": critical dependency on 1 person

In-house solutions (costly):

  • Hire backup: +70k EUR/year permanent
  • Emergency freelance: 600-900 EUR/day
  • Accept risk: business loss if outage

MSP solution:

  • Guaranteed continuity without extra cost
  • Redundant team integrated in monthly fee
  • Shared documentation and procedures
  • No "bus factor"

What are the hidden costs of an employee sysadmin?

Beyond gross salary:

  • Employer contributions: +45% of gross
  • Meal vouchers: 2k EUR/year
  • Company health insurance: 1k EUR/year
  • Continuing training: 3-8k EUR/year (certifications, conferences)
  • Tools and licenses: 2-5k EUR/year (monitoring, backup, password mgmt)
  • HR management: 10-15% manager time
  • Recruitment upon departure: 10-20k EUR (agency, time spent)
  • Adaptation period: 3-6 months not 100% productive

True cost: +60-80% of gross. A 50k EUR gross actually costs 80-90k EUR/year to employer.

MSP: Transparent all-inclusive pricing, no hidden costs.

Continuing education: how to keep skills up to date?

In-house sysadmin:

  • Annual training budget: 3-8k EUR (certifications, training, conferences)
  • Dedicated time for tech monitoring: 10-20% of time
  • Technologies evolve rapidly: Docker, Kubernetes, cloud, security
  • Certifications to renew regularly
  • Opportunity cost during training (unavailable)

MSP:

  • Team training integrated in monthly fee
  • Shared expertise across all clients
  • Continuous technology monitoring by team
  • Permanent feedback on new technologies
  • No training surcharge for you

Tools and licenses: what costs for a sysadmin?

Required tool stack:

  • Monitoring: Zabbix/Nagios (free) or Datadog/New Relic (500+ EUR/month)
  • Backup: Veeam, Acronis: 200-1000 EUR/year depending on volume
  • Password management: 1Password Teams, LastPass: 100-300 EUR/year
  • Virtualization: licenses + support depending on platform
  • Documentation: Confluence, Notion: 500 EUR/year
  • Ticketing: Jira, ServiceDesk: 500-1000 EUR/year
  • VPN/Security: firewall licenses, antivirus: 500-2000 EUR/year

Total: 2,000-5,000 EUR/year minimum

MSP: All professional tools included in monthly fee (monitoring, backup, documentation, alerting).

Scalability: in-house sysadmin or MSP for 1 to 50 servers?

Analysis by volume:

  • 1-5 servers: MSP 10-30x cheaper (840-9000 EUR/year vs 70k EUR/year sysadmin)
  • 5-20 servers: MSP 3-5x cheaper + superior expertise
  • 20-40 servers: MSP still advantageous (36-72k EUR/year vs 70k+ sysadmin without backup)
  • 40+ servers: In-house sysadmin becomes cost-effective but requires backup and team

MSP advantage:

  • Immediate scalability: add 10 servers without hiring
  • No recruitment delay (2-4 months)
  • No adaptation period (3-6 months)
  • Flexibility: increase/decrease as needed

True switching threshold: beyond 50 servers with need for dedicated internal team.

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