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If your current IT support means calling someone when things break, you’re not alone—but you’re also paying more than you realize. This guide explains the real difference between break/fix IT and managed services, reveals the hidden costs of reactive support, and shows why proactive IT management has become essential for small business survival.
Let’s be honest about how most small businesses handle IT problems:
Something breaks. You call someone. They fix it. You pay the bill. Repeat.
It’s the model we all grew up with. The “computer guy” who shows up when things go wrong, charges by the hour, and disappears until the next crisis.
But here’s what that model is actually costing you—and why 79% of small and mid-sized businesses are now prioritizing a completely different approach.
The Break/Fix Model: What You’re Really Paying For
Break/fix IT support sounds straightforward: you only pay when something needs fixing. No monthly fees, no contracts, no commitment.
The hourly rates seem reasonable enough—$100 to $200 per hour is typical in the Toronto area, with complex issues running even higher.
But here’s what that simple model doesn’t account for:
You're paying for the problem, not prevention
Every issue that could have been prevented becomes billable hours instead.
Downtime isn't included in the invoice
The hours your team can’t work while waiting for help? That’s on you.
The incentives are backwards
More problems = more revenue for them. There’s no business reason to prevent issues.
The Real Cost of “We’ll Fix It When It Breaks”
Here’s where the math gets uncomfortable. When your systems go down, the repair bill is just the beginning:
$137 to $427 per minute of downtime
According to Atlassian research on business productivity losses.
$8,000 to $25,000 per hour for SMBs
The average cost when systems are completely down.
90% of SMBs estimate downtime exceeds $300,000 per hour
According to a 2024 ITIC study of businesses up to 200 employees.
Think about it: while you’re waiting for the computer guy to show up, call back, or figure out the problem, your entire team might be sitting idle. Customers aren’t getting served. Orders aren’t being processed. Invoices aren’t going out.
That $150 repair bill? It’s hiding thousands in lost productivity.
BREAK/FIX MODEL
Reactive: Fix It When It Breaks
Pay by the hour when problems occur
No monitoring between visits
You discover problems when they cause downtime
Updates happen when someone remembers
Security is your responsibility
MANAGED IT MODEL
Proactive: Prevent Problems First
Predictable monthly cost per user
24/7 monitoring catches issues early
Problems fixed before you notice them
Automatic updates and patching
Security tools included and managed
What “Managed IT” Actually Includes
Managed IT isn’t just “break/fix with a monthly fee.” It’s a fundamentally different approach where your provider is responsible for keeping things running—not just fixing them when they don’t.
Continuous Monitoring
Software watches your systems around the clock—disk space filling up, backups failing, unusual activity, hardware showing signs of failure. We see it before you do and often fix it before you notice anything was wrong.
Automated Patching and Updates
Security updates happen automatically, on schedule, without disrupting your workday. This matters because 60% of breach victims were compromised due to an unpatched vulnerability where the fix was already available—they just hadn’t applied it.
Security Tools, Managed
Endpoint protection, DNS filtering, email security—not just installed, but actively monitored and responded to. When a threat is detected, someone is already looking at it.
Help Desk Support
When your team does have questions or issues, they have someone to call—without you worrying about the hourly meter running.
Vendor Management
Internet down? Printer acting up? Software not working? We deal with the vendors so you don’t have to sit on hold.
The Numbers That Changed Everything
The shift to managed IT isn’t just a trend—it’s a response to math that no longer works in small business’s favor:
25-40% reduction in IT expenses
What managed services typically save compared to reactive break/fix—from fewer crises and faster resolution.
25% faster incident resolution
Proactive monitoring means problems are identified and addressed faster.
$128,000 lower breach costs
Organizations using managed security providers experience significantly lower costs when breaches do occur.
The Business Survival Reality
These statistics aren’t meant to scare you—but they should inform your decisions:
93% file for bankruptcy within a year
Of businesses that suffer data loss for more than 10 days.
60% close within six months
Of SMBs that experience a major cyberattack.
85% experienced data loss last year
Of organizations surveyed in 2024.
Test Your IT Knowledge
What percentage of data breaches are caused by unpatched vulnerabilities where a fix was already available?
A) 20%
B) 40%
C) 60%
D) 80%
See Answer
Answer: C) 60% – According to the Ponemon Institute, 60% of breach victims were compromised due to a known vulnerability where the patch existed but hadn’t been applied. Automated patching through managed IT prevents exactly this scenario.
“But We’re Too Small for Managed IT”
This is the most common objection—and it’s based on an outdated understanding of how managed IT works.
Modern managed services are priced per user, not as a massive enterprise contract. A 5-person business pays for 5 users. A 15-person business pays for 15 users. The tools and protection are the same either way.
Here’s what’s actually happening in the market:
79% of SMBs now prioritize managed services
According to a Techaisle study of over 5,100 businesses.
26% of very small businesses (1-9 employees) already use managed services
With another 23% planning to adopt them.
71% of Canadian SMBs are adopting AI tools
IT complexity is increasing—even for small businesses—requiring professional management.
The question isn’t whether you’re big enough for managed IT. The question is whether you can afford the alternative.
The Bottom Line
Break/fix IT made sense when computers were simpler, threats were fewer, and downtime was an inconvenience rather than an emergency.
That world doesn’t exist anymore.
Today, your business runs on technology—email, files, customer data, financial systems, communication tools. When that technology stops working, your business stops working.
Managed IT isn’t about paying more for IT. It’s about paying predictably, preventing problems before they cost you thousands, and having someone in your corner whose job is to keep you running—not just to show up when things break.
The “computer guy” model served us well for a long time. But for most small businesses today, it’s a risk they can no longer afford to take.
Sources
- IT Solutions Canada, “Toronto IT Services Cost Guide,” 2024
- Atlassian Research, “Cost of Downtime Analysis,” 2024
- ITIC, “2024 Hourly Cost of Downtime Survey,” 2024
- CloudSecureTech, “Managed Services Cost Analysis,” 2024
- Techaisle, “SMB and Midmarket Managed Services Study,” 2024
- Ponemon Institute, “Vulnerability and Patch Management Study,” 2024
- Secureframe, “Data Breach Statistics and MSSP Impact,” 2024
- DataNumen, “Data Loss Statistics Report,” 2024
- Microsoft Canada, “Canadian SMB AI Adoption Report,” June 2025
