by Scott Jack
Content Contributor, E-N Computers
More than a decade of experience in technical support including end user support, mobile device management, application deployment, and documentation.
Outsourced IT services come in two main flavors—as needed services and ongoing services. We’re going to compare as-needed IT versus managed IT services, looking at the pros and cons of each. We’ll also share what we see as an MSP with both kinds of customers.
First, here’s a quick explanation of each type of service:
- As-needed IT support (a.k.a. on-demand, pay-as-you-go, or break-fix) — you call when there’s a problem, and we charge you an hourly rate to fix it
- managed IT services — comprehensive, proactive administration and support of your IT environment plus fixing something when it breaks, charged at a monthly flat rate
In our opinion (after nearly 30 years of providing both types of services), the most cost-effective option should:
- Fit your budget
- Fix problems quickly when they happen
- Keep problems from happening in the first place
Whichever route you go with your IT services, downtime caused by IT problems can directly cost tens of thousands of dollars per day in lost revenue and productivity. There are other indirect costs for recovery, overtime, consulting, data loss, and reputation damage. You need to fix these problems quickly and keep them from happening as much as possible.
QUICK ANSWER:
What’s the better investment: as-needed IT or managed IT services?
Based on nearly 30 years of experience, we believe managed IT services are the best investment for most small businesses. Regular, proactive IT support is like keeping your car maintained—it keeps everything running smoothly and prevents expensive problems.
Who are we?
E-N Computers is a managed IT services provider primarily serving Virginia, Washington, DC and Maryland (with remote clients from coast-to-coast). We’re locally owned and founder-led so we understand SMBs from personal experience and we focus on business outcomes, not just IT fixes. We specialize in high-compliance industries like engineering, health care, government, defense and law.
Option 1: As-needed IT support—Fix it when it breaks
Imagine that you never perform any maintenance on your car — no oil or other fluid changes, no tire rotations, no filter replacements — and you only call a mechanic when the car stops running. That’s as-needed, or break-fix, IT. You call your MSP, we assign a technician to respond when available, and you get charged by the hour.
With as-needed IT, you’re only getting support after something stops working. You call us when something goes wrong, like a server crashing, workstation freezing, or Wi-Fi not working.
In this support model, you pay hourly labor rates, plus parts, for every support incident. Instead of knowing what you are spending on IT each month, IT support costs become a guessing game. The costs are much more variable.
Also, we find that with this approach, people don’t call when they should. Because of the unknown costs, they wait until small issues grow into bigger problems. This can kill your revenue and productivity. When 84% of businesses say that security is their number one cause of downtime and 20% can’t afford $10,000 in downtime costs, waiting for IT to break is risky business.
Pros and cons of as-needed IT support
| Pros | Cons |
|---|---|
| No monthly fee if nothing goes wrong
May be cheaper initially for very small, simple businesses with minimal IT needs | Variable monthly cost is hard to budget
Higher risk of unexpected, costly downtime and data loss No preventive maintenance; small issues become big, expensive ones Slower response times Lack of long-term IT strategy and planning |
Option 2: Managed IT services—Proactive, comprehensive support
In contrast, managed IT services are like having your car maintained on a schedule by a trusted mechanic. Every service is done on time, larger jobs are planned so you can budget, and you’re rarely surprised by problems.
With managed IT services, you get a fully responsible IT department for hire. We already have all the tools and processes in place to monitor your systems and provide proactive, comprehensive support.
We watch for potential issues and address them before they grow in size. We keep your computers updated. We work with you on an IT strategy and budget. With managed services, you move beyond reactively fixing problems and on to preventive maintenance and strategic planning.
You pay a fixed, predictable monthly fee for comprehensive support. If additional work is needed, it is planned, budgeted, and approved before work begins. We never hit you with surprise bills. Instead, we help you control costs with prevention and planning.
Pros and cons of managed IT support
| Pros | Cons |
|---|---|
| Monthly flat rate provides a predictable, stable IT budget
Far less downtime and increased employee productivity Improved cybersecurity and risk management A fully responsible IT department at a fraction of the cost Long-term IT strategy that supports business growth and controls costs Potentially higher ROI on IT spending | Requires a regular monthly investment, even if nothing breaks (because we’re preventing it from breaking).
May seem like a higher upfront cost compared to zero-cost months in break/fix. |
Which model is best for most small businesses?
Ask yourself these questions to determine the best fit for you:
- How much risk are you comfortable with?
- How much does it cost you to have your employees not working for hours or days because of IT issues?
- What is the impact on revenue if data or systems are unavailable?
- Do you prefer a predictable budget or fluctuating (possibly high) IT expenses?
Based on nearly three decades of experience across hundreds of customers in a variety of industries, we think managed IT services are the best investment for most small businesses. While a few small, very simple customers can get by with an as-needed basic IT plan, most small businesses save money by choosing a flat monthly rate that comes with:
- Unlimited helpdesk support
- After-hours support for work stoppage and critical issues
- Regular onsite visits
- Remote monitoring and management, including software patch management
- Cybersecurity services
- Backup and disaster recovery planning
- Quarterly strategy sessions covering service delivery, risk, infrastructure, and operations
You also minimize the cost of lost productivity and downtime that haphazard IT causes. Managed IT services transform IT from a cost center into a strategic asset that stabilizes, protects, and fuels the growth of your business.
Invest in business continuity and growth
As-needed IT is like a bandage — and sometimes it’s like a bandage on a gaping wound. In contrast, managed services are proactive health and security for your IT. If you want stability, predictable costs, and sustainable growth, investing in managed IT services will provide a strong foundation. Instead of a headache, IT becomes one less thing to worry about.
Next Steps
When you have the right people working together, you can implement systems and processes that actively help you reach your business goals. We sometimes call this IT maturity. But for many organizations, something is off when it comes to their partnerships, strategy, systems, and settings. How can you know what’s working well and where you have room for improvement? Start by taking our free Strategic Growth IT Assessment. You’ll walk away with some pointers and, if you want, a free appointment to discuss your results.
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