If you've been running your business on break-fix IT support, you're in good company. Many Alberta businesses started this way: call someone when the server crashes, pay for the repair, and get back to work. It feels straightforward and economical.
But here's what we've observed after 30+ years in the industry: the businesses that stick with break-fix often end up paying more in the long run, and they face risks that didn't exist even five years ago.
This isn't a sales pitch. It's a realistic look at how the economics and security landscape have changed, so you can make an informed decision about what's right for your business.
The Hidden Economics of "Pay Only When It Breaks"
The appeal of break-fix is obvious: no monthly fees, no long-term commitments, you only pay when there's a problem. For a business watching every dollar, that sounds smart.
The problem is what you don't see on the invoice.
The Costs That Don't Show Up on the Repair Bill
- Downtime: When your systems are down, your staff can't work. Orders don't get processed, customers don't get served, and revenue stops. Industry research suggests downtime costs small businesses anywhere from $137 to $427 per minute, depending on the operation.
- Productivity loss: Even when systems are "working," slow computers, network issues, and workarounds waste hours every week.
- Emergency premiums: When something breaks at 4:30 PM on a Friday before a long weekend, you pay emergency rates. And it always seems to happen at the worst possible time.
- Cascading failures: Small problems that go unaddressed become big problems. A hard drive showing warning signs today becomes a data loss event next month.
The Incentive Problem
Here's the uncomfortable truth about break-fix: your IT provider only makes money when your technology fails.
That doesn't mean they're sabotaging your systems. But it does mean there's no financial incentive for them to spend unpaid time optimizing your network, applying preventative patches, or monitoring for early warning signs. Why would they? That work reduces their billable hours.
This creates what's called "technical debt": small issues accumulate over time until something finally breaks in a big, expensive way.
A Real-World Pattern We See
A business runs fine for months with minimal IT costs. Then a server fails, and suddenly there's a $15,000 emergency: data recovery, hardware replacement, overtime to rebuild, and three days of disruption. The "cheap" approach to IT just cost more than two years of managed services would have.
The Security Landscape Has Changed
Ten years ago, a computer virus was an annoyance. You'd run a scan, clean it up, and move on. Today, a security incident can be an existential threat to your business.
How Modern Attacks Work
Ransomware attacks increased nearly 25% in 2024, and the tactics have evolved far beyond simple encryption. Modern attackers use what's called "triple extortion":
1. Encryption
They lock your files so you can't access your own data.
2. Exfiltration
Before encrypting, they copy your sensitive data. If you don't pay, they threaten to publish it online: customer information, financial records, employee data.
3. Harassment
They contact your customers, vendors, and partners directly, telling them their data has been compromised and pressuring you to pay.
The Patch Management Gap
Software vulnerabilities are discovered constantly, and attackers weaponize them faster than ever. When a critical security flaw is announced, you might have days or even hours before automated attacks start exploiting it worldwide.
Under a break-fix model, who's applying those patches? Probably no one, at least not promptly. You call when something breaks, not when an update is available. By the time you realize there's a problem, the damage is done.
Managed services providers deploy automated patch management that applies critical security updates within hours of release. The door gets closed before the attacker arrives.
The Cyber Insurance Factor
Most businesses now need cyber liability insurance, and the requirements have tightened significantly. Insurers typically require:
- Endpoint Detection and Response (EDR) software on all devices
- Multi-factor authentication on email and critical systems
- Verified, tested offsite backups
- Documentation of security policies and procedures
- Evidence of regular patching and updates
A break-fix relationship typically lacks the documentation and toolsets to satisfy these requirements. We've seen businesses discover they're effectively uninsurable, or face dramatically higher premiums, because they can't demonstrate basic security hygiene.
Comparing the Two Models
Here's how break-fix and managed services stack up across the factors that matter most:
| Factor | Break-Fix | Managed Services |
|---|---|---|
| Provider Incentive | Profits when you're down | Profits when you're up |
| Response | Best effort (you wait in line) | Prioritized based on severity |
| Maintenance | None (wait for failure) | Automated and scheduled |
| Security | Basic antivirus (often outdated) | Enterprise tools with monitoring |
| Budgeting | Unpredictable spikes | Flat monthly fee |
| Relationship | Transactional ("the repair guy") | Strategic partner |
| Backups | Unclear status, rarely tested | Monitored and verified regularly |
Common Objections (And Honest Responses)
"We hardly ever have problems. Why pay every month?"
You hardly ever have problems that you see. But in the background, your backup may have failed silently three weeks ago. Your server logs might be filling up. Security patches are piling up unapplied. These invisible issues don't announce themselves until they become visible, expensive problems.
The goal of managed services isn't to bill you for problems. It's to prevent the $15,000 disaster so you never have to deal with it.
"If it ain't broke, don't fix it."
That philosophy works for a toaster. It doesn't work for a business network connected to the internet in 2025.
"Not broke" doesn't mean "secure." Attackers can dwell in a network for weeks, quietly mapping systems and stealing credentials, before deploying ransomware. By the time something visibly "breaks," the damage is extensive.
"Managed services costs too much per month."
It depends what you're comparing it to. If you compare it to months with no IT expenses, yes, it's more. If you compare it to the total cost of ownership, including downtime, emergency repairs, lost productivity, and potential security incidents, the math usually favors managed services.
The flat monthly fee also includes enterprise-grade tools (endpoint protection, backup monitoring, remote management) that you'd otherwise have to purchase separately.
A Different Way to Think About It
Managed services converts a volatile, uncapped expense into a predictable operating cost. You know what IT will cost this year. You can budget for it. There are no $20,000 surprises in March.
Is Managed Services Right for Every Business?
Honestly, no. If you have one or two computers, no server, no sensitive customer data, and downtime doesn't significantly impact your revenue, break-fix might be fine.
But if any of the following apply to your business, managed services is worth serious consideration:
Managed Services Makes Sense When:
- You have 5+ employees relying on technology daily
- Downtime directly impacts your ability to serve customers or generate revenue
- You store sensitive information (customer data, financial records, health information)
- You're subject to compliance requirements (PIPA, HIPAA, PCI)
- You need or want cyber liability insurance
- You've experienced a significant IT failure in the past and don't want to repeat it
- You want IT costs to be predictable for budgeting purposes
Making the Transition
If you're considering a switch from break-fix to managed services, here's what a reasonable transition looks like:
- Assessment: A good provider will evaluate your current environment before quoting anything. They need to understand what you have, what condition it's in, and what your business actually needs.
- Remediation: There's often cleanup work required. Deferred maintenance, outdated equipment, and security gaps may need to be addressed before ongoing management makes sense.
- Onboarding: Documentation, tool deployment, and establishing baselines. This is where the provider learns your environment so they can support it effectively.
- Ongoing management: Monitoring, maintenance, support, and regular reviews to ensure technology continues to align with your business needs.
Be wary of providers who skip the assessment or quote a flat fee without understanding your environment. That usually means surprises later.
Questions to Ask Any Provider
Whether you stick with break-fix or move to managed services, these questions will help you evaluate any IT relationship:
- How do you handle security patching and updates?
- What happens to my data if your company closes or I leave?
- Can you provide documentation that satisfies cyber insurance requirements?
- How do you verify that backups are actually working?
- What's included in your monthly fee, and what costs extra?
- Do you have experience with my industry and the specific software we use?
Want to Talk Through Your Options?
We're happy to review your current setup and give you an honest assessment of whether managed services makes sense for your situation. No pressure, no obligation. Sometimes the answer is "what you have is fine." We'd rather tell you that than sell you something you don't need.