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The Difference Between Managed IT Services and Break/Fix Services

Small businesses need to keep their expenses to a minimum to maintain their budget, so it’s understandable to shop around for IT services to fit that budget. For many small businesses, the choice often comes down to Managed IT Services vs. Break/Fix managed services.

To make the choice a bit more transparent, here’s what you need to know about these two options and what they can mean for your business in the long term.

What Is Break/Fix?

Break/Fix services only enlist the help of a professional when something in your system is broken. This IT technician comes into your location to determine and fix your problem, charging by the hour. This way, you only pay for the services you use and avoid paying monthly fees.

Unfortunately, with this model, your biggest IT problems are their most profitable projects. The specific advantages and disadvantages of Break/Fix services are discussed in more detail below:

Benefits of Break/Fix Services

  • No monthly service fees to maintain a subscription.
  • Leaves room to use an internal employee to fix minor issues.

Downfalls of Break/Fix Services

  • The IT specialist called in may not have a history with your system and may take longer to find and fix the problem.
  • Your Break/Fix provider has no incentive to implement stable fixes, as they make money every time you call them to fix a problem.
  • Your Break/Fix provider has little incentive to make fixes quickly, since they make more money the more slowly they work.
  • If you have the same problem repeatedly, you’re billed separately every time.
  • Overall costs are less predictable, as they vary with project time and equipment used. This makes budgeting much more difficult for Break/Fix models.

What Are Managed IT Services?

Unlike Break/Fix services, Managed IT Services involve a more consistent relationship between the service provider and the customer. Essentially, your business outsources your daily system management to a Managed IT Services provider. This provider manages the system around the clock, identifying threats and fixing problems as they happen, all for a monthly service fee.

With Managed IT Services, it’s in their best interests to solve problems in such a way that they remain fixed. This minimizes labor for themselves while simultaneously encouraging their customers to continue their memberships.

The specific advantages and disadvantages of Managed IT Services are described in more detail below:

Benefits of Managed IT Services

  • Your system is managed by a professional who is familiar with your system, so they know what is needed to get you back up and running.
  • With monthly membership, you get 24/7 service and there is no limit to the amount of service you can get.
  • It is in the best interests of the Managed IT Service provider to keep networks stable so they keep customers and reduce labor for themselves.
  • Managed IT Service providers are incentivized for complete proactive maintenance for future network stability.
  • Your network is monitored more completely, so slowdowns and breaches are identified and solved more quickly.
  • With a single monthly cost, you can budget for your IT services more effectively.

Drawback of Managed IT Services

  • You pay a fixed monthly cost whether or not you have a major system malfunction.
  • Managed IT Services typically charge an initial setup fee.

Which Service Is Better for Your SMB?

When choosing between a Managed IT Service and a Break/Fix model, you need to consider the importance of your IT stability compared to the importance of cost savings in your business. If cost is the biggest concern for your business and your IT is of low importance to your business’ functionality, a Break/Fix model might be best for you.

However, if your network is essential to your company’s daily operations, a Managed IT Service may be the best choice.

Contact CTI to Learn More

Interested in learning more about the benefits of Managed IT Services? Consolidated Technologies, Inc. can help. As a Managed IT Services provider, we have the experience your business needs to keep your network running consistently. Our innovative staff has helped over 2,000 businesses achieve greater functionality in their systems and we can do the same for you.

Start your CTI journey and explore our managed IT solutions today. Contact CTI for more information using the Contact Form.