Break-fix IT is the old-school way of handling technology: you wait until something breaks, then you call someone to fix it. You’re billed for the time and materials, and when the job’s done, so is the relationship — until the next crisis.
At first glance, it feels budget-friendly. No monthly fees, no ongoing commitments. But the hidden costs of downtime, surprise invoices, and recurring issues add up quickly.
What Is a Managed Service Provider (MSP)?
A Managed Service Provider takes the opposite approach. Instead of waiting for things to fail, an MSP monitors, maintains, and secures your systems proactively.
With a flat monthly fee, your business gets:
- 24/7/365 monitoring and support
- Regular security updates and patching
- Managed backups and tested restores
- Cybersecurity protections (MFA, EDR, phishing filters)
- Strategic planning for hardware, software, and compliance
In other words: a partner who keeps your IT working so you can focus on running your business.
Cost Breakdown Over 3 Years
Let’s compare break-fix IT vs MSP for a typical Ontario business with 25 employees.
Break-Fix IT Costs:
- Server crash: $8,500 (downtime + emergency repair)
- Ransomware recovery: $22,000 (cleanup + data loss)
- Backup Disaster Recovery: $3,500
- Miscellaneous on-site calls: $6,000
- Total (3 Years): $40,000+ — and that’s without factoring in reputational damage.
Managed IT Pricing (MSP):
- Flat monthly fee: $150/user x 25 users = $3,750/month
- Annual total: $45,000
- Total (3-Years): $135,000
At first glance, the MSP looks more expensive. But here’s the key difference: no surprise bills, no major downtime, and insurance-ready security built in.
When you add in productivity gains, avoided downtime, and compliance savings, most SMBs end up ahead — not behind.
The Bottom Line
Break-fix IT feels cheaper until you do the math. Managed IT might look like a bigger investment, but in reality, it’s the only way to:
- Avoid crippling downtime
- Pass insurance and compliance checklists
- Keep staff productive and clients happy
- Budget without surprise invoices
For Ontario businesses in 2025, the real savings come from prevention, not patchwork.
