Most small businesses start with break-fix IT support—calling someone when something breaks. It seems economical, but it's actually the most expensive approach to IT. Here's why.
What is Break-Fix IT?
Break-fix is exactly what it sounds like: something breaks, you call someone to fix it. You pay by the hour, and you only pay when there's a problem. Sounds reasonable, right?
The problem is that this reactive approach creates perverse incentives. Your IT provider only gets paid when things go wrong—so they have no financial motivation to prevent problems. In fact, recurring issues are good for their business.
The Hidden Costs of Break-Fix
Downtime Costs More Than You Think
When your systems are down, your employees can't work. For a 10-person office at an average salary of $60,000/year, one hour of downtime costs roughly $300 in lost productivity—and that doesn't count lost sales, missed deadlines, or frustrated customers.
With break-fix, you're waiting for a technician to become available, travel to your location, diagnose the problem, and then fix it. A simple issue might take hours; a complex one might take days.
Unpredictable Bills
Break-fix billing is inherently unpredictable. One month you might pay nothing; the next month you might get hit with a $5,000 emergency repair. This makes budgeting nearly impossible and can create cash flow problems.
No Proactive Prevention
Break-fix providers don't monitor your systems. They don't know your server is running low on disk space until it crashes. They don't know your backup failed until you need to restore from it. Every problem becomes an emergency.
Security Gaps
When no one is actively managing your IT, security updates don't get applied, antivirus definitions fall out of date, and vulnerabilities accumulate. You're an easy target for ransomware and other attacks.
How Managed IT Works
With managed IT services, you pay a flat monthly fee for comprehensive IT support and proactive management. Here's what that includes:
- 24/7 monitoring — We watch your systems around the clock and catch issues before they cause downtime
- Proactive maintenance — Updates, patches, and optimization happen automatically
- Help desk support — Your employees get fast help when they need it
- Security management — Continuous protection against evolving threats
- Strategic planning — We help you plan technology investments and avoid costly mistakes
The Real Cost Comparison
Let's look at a typical 15-person business over a year:
Break-Fix Scenario
- Emergency server repair: $2,500
- Ransomware recovery: $8,000
- Various help desk calls: $3,000
- Downtime (estimated 40 hours): $12,000 in lost productivity
- Total: ~$25,500
Managed IT Scenario
- Monthly fee ($150/user): $27,000/year
- Downtime (estimated 4 hours): $1,200 in lost productivity
- Total: ~$28,200
The costs look similar, but consider: the managed IT scenario includes security protection that prevented the ransomware attack, proactive monitoring that caught the server issue before it failed, and unlimited help desk support. Plus, those 36 hours of avoided downtime represent peace of mind you can't put a price on.
When to Switch to Managed IT
Consider managed IT if:
- You have 5 or more employees
- You rely on technology to operate your business
- You've experienced costly downtime or security incidents
- You want predictable IT budgeting
- You don't have in-house IT staff
What to Look for in a Managed IT Provider
- Local presence — Can they be on-site when needed?
- Proven track record — Ask for references from similar businesses
- Clear SLAs — What response times are guaranteed?
- Security focus — Security should be included, not an add-on
- Transparent pricing — No hidden fees or surprise charges