Break-Fix vs. Managed Services: Which IT Support Model Is Right for Your Business?

At the most general level, there are two major IT Support Models: Break-Fix IT Support and Managed IT Services. Each general model has its strengths and weaknesses, depending on your company’s needs, budget, and goals. In this guide, we’re breaking down both options into simple, business-relevant terms to help you decide.

What is Break-Fix IT Support?

Break-Fix IT Support operates on one straightforward principle: businesses call for help only when something goes wrong, like prepaid phone plans.

This approach is for companies with intermittent IT issues that require immediate fixes but little ongoing management.

How Does Break-Fix Work?

With Break-Fix IT Support, you only pay for and engage with the IT professionals when there’s a problem. You contact the service provider – similar to ordering a tow truck when your car breaks down – and they diagnose and charge only for that specific fix. There are no ongoing obligations after the fact. 

Pros

• Pay-as-you-go model: You only pay for services when needed, which can save money for businesses with minimal IT issues.
• No long-term commitment: There are no contracts, offering businesses the flexibility to switch providers.
• Simplicity: This model is easy to understand and implement for companies without complex IT systems.

Cons

• Unpredictable costs: Emergencies can lead to high, unexpected expenses.
• Downtime: Waiting for IT support can cause prolonged system outages and reduced productivity.
• Reactive approach: This model doesn’t prevent issues, leading to recurring problems and inefficiencies.

What are Managed IT Services?

Managed IT Services offer Proactive IT Support and comprehensive IT support through a subscription-based model. Service providers monitor and maintain your IT systems to optimize performance and minimize system downtime.

How Do Managed Services Work?

Under a Managed IT Services agreement, you give the provider access and control over your IT infrastructure so they can take responsibility for it. They perform routine maintenance, monitor systems, and address potential problems before they escalate.

Common Managed IT Services

• Network monitoring and management
• Data backup and recovery
• Cybersecurity solutions
• Helpdesk support
• Cloud services management

Pros 

• Predictable costs: Monthly subscription fees make budgeting easier.
• Proactive support: Continuous monitoring helps prevent issues before they occur.
• Comprehensive solutions: Managed service providers often offer a broad range of services.

Cons

• Recurring costs: Monthly fees can be out of budget for businesses with limited funds.
• Dependency on the provider: Relying heavily on an external partner may feel risky.
• Not ideal for minor needs: Small businesses with minimal IT requirements may find Managed IT Services excessive.

Key Differences Between Break-Fix and Managed Services

• Proactive vs. Reactive Support: Managed IT Services focus on Proactive IT Support and issue prevention, while Break-Fix IT Support addresses problems only after they arise. Essentially, like going for regular dental check-ups vs. only going when you feel a problem, management is more expensive in the short run but can save you from major trouble in the long run.
• Cost Structure: Break-Fix IT Support operates on a pay-as-you-go basis, possibly making  costs highly variable. Managed IT Services provide consistent, predictable pricing through subscription plans.
• Service Level Agreement (SLA): Managed IT Services typically include SLAs, ensuring guaranteed response times and performance standards. Break-Fix IT Support lacks such agreements, potentially leading to slower response times in an emergency.
• Impact on Business Continuity and Downtime: Managed IT Services is a proactive approach that minimizes downtime and ensures business continuity. Break-Fix IT Support, being part of Reactive IT Services, often results in extended outages and productivity losses.

When to Choose Break-Fix IT Support

Break-Fix IT Support works best when you have minimal IT needs and for lower budgets. However, these cheaper costs have some drawbacks, which we’ll go over.

Best for 

• Small Businesses with Limited IT Needs: If your operations don’t rely heavily on IT or don’t require a very complex setup, it is usually fine to simply rely on Break-Fix IT Support to address the occasional issue.
• When Cost Control is a Priority: It also works great to avoid fixed monthly fees, as you get a simpler pay-as-you-go model with Break-Fix IT Support.

Use Cases 

• Small offices with basic hardware.
• Companies with in-house IT staff needing occasional external support.
• Non-critical systems where downtime isn’t a significant concern.

When to Choose Managed IT Services

Managed IT Services are better for businesses that need reliable, dependable IT systems running 24/7 without interruption. Essentially, break-fix works better for less essential systems, while managed IT is better when you need constant maintenance and uptime. 

Best for 

Businesses Relying Heavily on IT: Organizations with complex systems or a high reliance on technology are probably better candidates for the proactive IT support that Managed IT Services offer.

Ideal for 

Growing Businesses: As a company scales their service, they often encounter new IT demands, making it easier to use Managed IT Services.

Case Studies of Businesses Benefitting from Managed Services

• A healthcare provider ensuring compliance with data security regulations.
• An e-commerce company minimizing downtime to maintain customer satisfaction.
• A growing startup optimizing its costs by outsourcing its IT management.

How to Decide Between Break-Fix and Managed IT Services

Assessing Your IT Needs

First, you need to evaluate the complexity of your IT systems, the frequency of the issues you’re having, and the potential impact of downtime on your operations. Depending on how reliant you are on your IT, you can get away with more or less costly services.

Factors to Consider When Choosing a Model

• Budget: Can you afford consistent monthly fees?
• Downtime tolerance: How critical is uninterrupted IT performance?
• Scalability: Will your IT needs grow over time?

Transitioning from Break-Fix to Managed Services

If you’re using Break-Fix IT Support but need IT help more often, that’s when you should consider transitioning to Managed IT Services. It can streamline your IT operations and reduce long-term costs if you’re starting to scale up fast.

The Future of IT Support: Managed Services as the Industry Standard

The rise of cloud computing with evolving cybersecurity threats makes Managed IT Services more and more necessary for running successful businesses. Here’s why:

• Growth of Cloud Computing: As cloud adoption increases, businesses are already relying on third-parties for much of their data and systems. Gradually making it more natural to turn to Managed IT Services.
• Cybersecurity and Proactive IT Management: Providers also offer robust cybersecurity measures that you would have to work with a cybersecurity partner.
• IT Support Trends: Why Managed Services Will Dominate: The demand for 24/7 support, proactive IT support, and predictable costs all align to make Managed IT Services the preferred IT support model.

Conclusion

We hope this guide has provided a solid starting point for choosing between Break-Fix IT Support and Managed IT Services.

There’s no one quick piece of information that can let a business know which to invest in, but rather it has to be an informed decision made by balancing a few different factors. As long as you keep in mind that Break-Fix IT Support tends to work better for small companies with limited requirements and Managed IT Services for larger ones that need proactive, scalable solutions, you should be good.