Managed IT vs Break-Fix IT: Which is Right for Your Business?
Managed IT provides proactive, all-inclusive support for a fixed monthly fee, while break-fix IT charges per incident when something breaks. For businesses with 10+ employees relying on technology, managed IT typically costs less and provides better uptime than break-fix.
Written by Alex Dayan, Founder of King of IT | Toronto Managed IT Services
1Break-Fix IT Explained
How it works: You call an IT company when something breaks. They fix it and send a bill—usually $100-$200/hour with a minimum charge.
Pros:
No monthly commitment
Only pay when you need help
Good for very small businesses with minimal IT
Cons:
Unpredictable costs—a bad month can be expensive
No proactive monitoring—problems aren't caught early
Longer resolution times—no familiarity with your systems
No cybersecurity unless you pay extra
Incentive misalignment—they profit when things break
2Managed IT Explained
How it works: You pay a fixed monthly fee per user. The MSP handles everything: monitoring, maintenance, help desk, cybersecurity, and projects.
Pros:
Predictable monthly cost
Proactive monitoring prevents problems
Fast resolution—they know your systems
Cybersecurity typically included
Aligned incentives—they profit when things work
Cons:
Monthly commitment required
May feel like you're paying for "unused" support
Need to choose the right MSP partner
3When to Choose Each Model
Break-Fix makes sense if:
You have fewer than 5 employees
Technology isn't critical to your business
You have strong internal IT knowledge
Your budget is truly unpredictable
Managed IT makes sense if:
You have 10+ employees
Downtime directly costs you money
You don't have internal IT expertise
You need cybersecurity protection
You want predictable IT costs
The math: A 20-person company paying $150/user for managed IT spends $3,000/month. Under break-fix, one server crash, one ransomware scare, or one major outage can easily exceed that—plus you suffer the downtime.