You’re not choosing “cheap” support. You’re choosing how you pay for risk. Break/fix can look cheaper today. Managed IT is often cheaper over 12–36 months once you count downtime, security exposure, and repeat problems.
What does Break/Fix Support (Reactive) mean?
Break/fix is pay-per-incident. You call when something breaks. You’re billed for labor, parts, and often higher rates for urgent or after-hours work. There is usually no ongoing monitoring or maintenance included.
What Managed IT Services (Proactive) Means?
Managed IT is a subscription. You pay monthly (often per user or device) for support plus prevention work. Typical coverage includes monitoring, patching, help desk, reporting, and SLA-backed response times. Many providers bundle security controls and planning.
“Cheaper” Depends On What You Count
Direct Costs (Visible On Invoices)
These are easy to budget.
- Break/fix: incidents × hours × rate + parts + rush fees
- Managed IT: monthly fee × months + onboarding + approved projects
Managed feels “more expensive” in calm months. That’s when patching, backups, and monitoring reduce future pain.
Indirect Costs (The Hidden Budget Drain)
This is where long-run cost lives.
- Lost revenue and productivity during outages
- Customer churn and reputation repair
- Security incident response and recovery
A 2025 New Relic study reported by IT Pro found high-impact outages had a median cost of $2 million per hour in the UK and Ireland. Many reported $1–$3 million per hour.
IBM’s Cost of a Data Breach Report 2025 puts the global average breach cost at $4.44 million.
Real Cost Comparison: A Simple 12–36 Month TCO Model
Managed IT TCO Formula
Start simple:
Managed TCO = (monthly fee × months) + onboarding + approved projects
For pricing reality checks, 2025 guides commonly cite per-user plans around $100–$200 per user per month, with higher costs when security depth rises.
Break/Fix TCO Formula
Also simple:
Break/fix TCO = (incidents × avg hours × hourly rate) + parts + after-hours premiums
If you don’t track incidents, you’ll guess low. Many organizations don’t even track outage impact well.
Add “Risk Costs”
Now add what your invoice ignores.
Downtime cost = hours down × your cost per hour
TechTarget’s 2025 review of Oxford Economics research estimated downtime at about $9,000 per minute on average, or $540,000 per hour.
Atlassian also notes downtime costs include business disruption like churn, not just lost revenue.
Security risk cost = likelihood × impact
In 2025, IBM warns that fast AI adoption without governance raises breach risk and cost.
An IT Pro report summarizing IBM data said 20% of surveyed organizations had breaches linked to “shadow AI,” adding $670,000 on average.
The Common Traps That Make Break/Fix Cost More
Break/fix fails when it becomes a strategy.
When Managed IT Is Not Worth It
Managed IT may be overkill when you already have strong in-house IT, low complexity, and a real tolerance for downtime. It can also be unnecessary if you only need project work, like a migration or one-time hardening.
What To Ask Before Choosing
Questions For A Managed Provider
Questions For A Break/Fix Provider
What To Ask Before Choosing
You’re already paying for IT. The only question is whether you pay with surprise invoices or with a plan that reduces incidents. Do the 12–36 month math. Then choose the model that fits your risk, not your hopes.
FAQ
Is Break/Fix Cheaper For Small Businesses?
It can be, if your setup is simple and outages don’t hurt much. But you must track outage hours and repeat issues first.
