Traditionally, an IT support company would react to problems that have already occurred, and their service would be judged by how quickly they can attend to a problem. But, by that time it’s already too late.
There are many differences between the break-fix model such as this and managed services. If a Perth Buinsess is choosing between the two, they must ask themselves whether they want proactive or reactive IT management.
SMBs trying to save on expenses will often opt for the break-fix approach but does it prove economical in the long run? We at Leap Consulting are breaking down the difference between managed services and break-fix.
Break Fix
As the name indicates, when something breaks you can hire a technician to fix the broken technology. What’s unfortunate about this approach is that that the technician often works at an expensive hourly rate.
Budgeting with a break-fix model is tough because businesses never know when to expect anything to break.
Disadvantages of Break-Fix IT Support
- They don’t invest in network management tools because there is no incentive for them to do so.
- Your IT maintenance provider has no financial incentive to keep your network and infrastructure stable since they can bill money every time you have a problem
- No incentive to upgrade network management tools or automation systems
- Variable costs (hourly billing), variable response times and lack of guarantees
- Increased downtime that loses business and revenue
- You don’t benefit from the latest network management and automation systems.
- If the break-fix IT support provider works slowly, they make more money.
- New or less experienced engineers can take soak up hours learning at your cost
A dilemma exists whenever a customer relies on a service provider who is not incentivised to achieve the same ends as what the client desires. The break-fix service provider would have to put the client’s interests above their own, the better they fix, the less work they have for the future.
The ‘break-fix’ model might seem cost-effective at first since it negates the monthly fee of an MSP. However, overall, it rarely turns out to be cost-effective as the potential of a hefty bill to resolve an issue arises. The break-fix method is a reactive model that will end up costing your SMB more eventually.
Managed Services
Managed Services is a term used to describe a proactive model of IT management. What differentiatesManaged Services from traditional IT support is that the responsibility and risk shifts to the Managed Services Provider.
Managed IT Services allows constant monitoring and upgrading of your systems, without waiting for something to crash enabling businesses to take preventative measures to ensure the smooth operations of all your facilities.
Budgeting your IT service expense is much easier than with the break-fix model as you’ll pay an upfront fee for a managed service and be billed a set rate (or near-set rate) monthly.
Advantages of Managed Services
- You pay a fixed monthly fee
- MSP is incentivised to keep your network as stable as possible
- Proactive maintenance to achieve optimal network stability
- Enjoy the benefits of enterprise-level automation and monitoring systems
- A comprehensive Service Level Agreement (SLA) backs response times.
Unlike the break-fix IT Support model, our Managed Services align the interests of both parties. As a result of this, we work smarter to ensure that your network remains 100% stable and you only pay for the services you need.
Final Discussion
SMBs should consider how dependent your business is on your IT system. An organisation that is less technology-dependent can survive on the break/fix model. However, managed services are ideal for your company if your business wants:
- A predictable, fixed monthly fee
- The benefits of a top IT team
- To maintain a low-risk environment with little downtime
- To free up your IT to focus on your core business
We find that clients appreciate when we can create a forward-thinking strategy and roadmap for upgrades and improvements because they understand we’re actively trying to help them improve their business.
If you want to see how we can help achieve your business goals, get in touch today.
