I work as the Director of Information Technology for a medium/large company with offices in Chicago, San Francisco, New York City and HQ in Phoenix.
In IT, a Bachelor's degree is good to get you through HR and into the interview process. It's also good to help you stand out above the other candidates for a position. It shows that you can complete a long-term project and goal. That's about the extent of it for a 4-year degree. Mine's in Management Information Systems. I have rarely seen Master's degrees do anything in IT unless you're in the Computer Science side of things. On the IT Management/Sys/Network Admin side of things, it's not going to help out any, if at all unless you are poised to move to a CIO or CTO type position. Even then, it's only desireable because your bio will be on the company web site and will be a part of representing the company and IT department. The IT world changes so quickly that most of what you learn in college is obsolete by the time you graduate other than the theory, history and basics of IT.
Certifications. Ugh. Yes, I have mine. Why do I have them? Only because I didn't pay a dime to take the tests. I didn't study - just took the tests and passed them. As others have pointed out, they are an absolute joke. In IT, experience is king. Education and certs will get you to the interview, but real-world experience is what counts. Exams - particularly MS exams - would have you think that for any given problem, there is ONE solution for that problem. In the real-world, that is rarely the case. In fact, IT employees who think "outside the box" are the ones who usually make the biggest impact. I have seen IT people who have every cert you can think of, but were unable to do the most basic of computer tasks or answer the most basic of questions. It's due to the cramming sessions. Shovel it in, spit it out and forget about it. You don't learn a thing. It is actually to the point where MCP's, MCSE's, MCSA's, etc reputations are being destroyed (if they aren't already destroyed).