The Real Cost of Reactive IT Support
Break-fix models cost more than managed services when you factor in downtime, lost productivity, and accumulated technical debt. We break down the numbers.
Key Takeaways
- 1Reactive IT support costs 2-3x more than proactive managed services when total cost of downtime is included.
- 2The average SMB experiences 14 hours of unplanned downtime per year under break-fix models.
- 3Technical debt compounds quarterly when systems are only fixed, never improved.
- 4Switching to managed services typically pays for itself within the first 6 months.
The break-fix model of IT support is seductively simple: something breaks, you call someone, they fix it, you pay for the time. On the surface, you only pay when there is a problem, which feels efficient. In practice, it is one of the most expensive ways to manage technology infrastructure.
The hidden costs start with downtime. When a server fails, an internet connection drops, or a ransomware attack encrypts your files, the clock starts ticking immediately. Your employees cannot work, your customers cannot reach you, and revenue stops flowing. Under a break-fix model, you are waiting for a technician to become available, diagnose the problem from scratch with no prior knowledge of your environment, and then implement a fix. Average resolution times under break-fix are 8 to 24 hours for significant incidents.
Under a managed services model, we are monitoring your systems continuously. We often detect and resolve issues before you even notice them. When something does escalate, our team already knows your environment intimately, has documented runbooks for common scenarios, and can begin remediation in minutes rather than hours. Average resolution times under managed services drop to 1 to 4 hours.
Then there is the productivity cost. When a system is down, it does not just affect the person using that system. It cascades through workflows, delays projects, and forces workarounds that introduce errors. We estimate that each hour of IT downtime costs the average 20-person SMB approximately $5,000 in direct and indirect productivity losses. For a 100-person company, that figure approaches $25,000 per hour.
Technical debt is the third hidden cost that break-fix models create. When your IT support only shows up to fix the immediate problem, there is no incentive or time to address the underlying cause. That aging switch stays in service. That misconfigured firewall rule remains. That unsupported operating system keeps running. Each deferred improvement makes the next incident more likely and more severe.
The financial comparison becomes lopsided quickly. A typical break-fix client spending $2,000 per month on reactive support is actually spending $6,000 to $8,000 per month when you factor in downtime costs, lost productivity, and the compounding interest on technical debt. A managed services engagement providing proactive monitoring, maintenance, patching, and priority support typically costs $3,000 to $5,000 per month for the same environment, and dramatically reduces the incidence and severity of problems.
The transition from reactive to proactive IT is one of the highest-leverage decisions an SMB can make. Reach out to our team to walk through a total-cost comparison for your specific environment.
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