What's the difference between break-fix and managed IT?

This is one of the most important decisions you’ll make for your business technology. Let’s break down both models honestly.

The Quick Comparison

Factor	Break-Fix	Managed IT
How it works	Call when something breaks	Proactive monitoring & prevention
Cost model	Pay per incident (hourly)	Fixed monthly fee
Predictability	Unpredictable costs	Predictable budget
Response	Reactive only	Proactive + reactive
Strategy	None	IT roadmap included
Best for	Very small, simple setups	Growing businesses (10+ employees)

What is Break-Fix?

Break-fix is exactly what it sounds like: something breaks, you call someone to fix it, and you pay by the hour.

How it typically works:

1. Your server crashes on Monday morning
2. You call an IT company
3. They dispatch a technician (eventually)
4. You pay $150-$200/hour until it’s fixed
5. Repeat when the next thing breaks

Break-fix pros:

• No monthly commitment
• Only pay when you need help
• Simple relationship

Break-fix cons:

• No one’s watching your systems
• Problems aren’t prevented, only fixed
• Unpredictable costs (that always seem to spike at the worst times)
• No strategic planning
• You’re not a priority client
• Longer response times
• Downtime is expensive

What is Managed IT?

Managed IT means you have a dedicated IT partner monitoring your systems 24/7, preventing problems before they happen, and handling everything technology-related for a fixed monthly fee.

How it typically works:

1. IT company installs monitoring on all your systems
2. They proactively maintain, update, and secure everything
3. When issues arise, they often fix them before you notice
4. Help desk available when you need support
5. Regular strategy meetings to plan ahead
6. You pay a predictable monthly fee

Managed IT pros:

• Proactive monitoring prevents problems
• Predictable monthly costs
• Strategic IT planning
• Priority support (you’re a contracted client)
• Faster response times
• Better security posture
• Focus on your business, not your IT

Managed IT cons:

• Monthly commitment
• Higher perceived cost (though often lower actual cost)
• Need to find the right partner

The Real Cost Comparison

Let’s be honest about the numbers. Here’s what we see with businesses that switch from break-fix to managed:

Typical Break-Fix Year (25-person company):

• 15-20 incidents requiring support: $4,500 - $8,000
• 2-3 major issues (server crash, security incident): $3,000 - $10,000
• Downtime costs (conservative): $5,000 - $20,000
• Total: $12,500 - $38,000 (unpredictable)

Managed IT Year (same company at $150/user):

• Monthly fee: $3,750 x 12 = $45,000
• Major incidents: Rare (included anyway)
• Downtime: Minimal (proactive monitoring)
• Total: $45,000 (predictable)

Wait - managed looks more expensive, right?

Here’s what that comparison misses:

1. Downtime costs more than you think - The average cost of IT downtime is $5,600 per minute for larger companies, and $137-$427 per minute for SMBs. One 4-hour outage can cost $30,000+.

2. Break-fix doesn’t include strategy - No one’s planning your technology future, which leads to more problems.

3. Security gaps are expensive - Without proactive monitoring, you’re more likely to have a breach. Average breach cost for SMBs: $120,000.

4. Break-fix responds slower - You’re not a priority client, so you wait in line.

Which Model is Right for You?

Break-fix might work if:

• You have fewer than 5 employees
• Technology isn’t critical to your business
• You have very simple needs (just email and basic files)
• You’re comfortable with risk and unpredictable costs
• You have someone internal who can handle basic issues

Managed IT is better if:

• You have 10+ employees
• Downtime significantly impacts your business
• You handle sensitive data (customer info, financials, health records)
• You have compliance requirements
• You want to focus on your business, not your IT
• You prefer predictable costs
• You need strategic technology planning

The Hybrid Approach?

Some businesses try a middle ground: basic monitoring with hourly support for issues.

Our honest take: This usually gives you the worst of both worlds. You get alerts but no one to act on them, and you’re still paying hourly when things go wrong.

If you’re going to invest in IT support, invest properly. Either keep it simple with break-fix (accepting the risks) or get proper managed services.

Questions to Ask Any Provider

Whether you choose break-fix or managed, ask:

1. What’s your average response time?
2. Who will actually be supporting us?
3. What’s included vs. extra?
4. Can you provide references from similar businesses?
5. What happens if we’re not happy?

Making the Switch

If you’re currently on break-fix and considering managed IT, here’s what to expect:

Transition process:

1. Assessment of your current environment
2. Documentation of all systems
3. Installation of monitoring tools
4. Knowledge transfer
5. Stabilization period (first 90 days)

What changes:

• You’ll have someone to call who knows your systems
• Problems will be caught earlier
• You’ll have regular check-ins and planning
• Your costs become predictable

The hardest part is often mental - moving from “IT is an expense when things break” to “IT is an investment in my business.”

Ready to explore what managed IT would look like for your business? Let’s talk.