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Managed Services Packages Vs. The Break-Fix Model

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Texas Systems Group
Managed Services Packages Vs. The Break-Fix Model

Some of the most common questions that businesses have regarding IT services are, “Why can’t I just get it repaired when it breaks instead of hiring a managed service provider (MSP)?” or “Are managed services packages more beneficial than a break-fix model for my organization?” These kinds of questions are legitimate, as enterprises today are not just concerned with cost anymore – modern-day businesses need to consider other factors like cybersecurity and efficiency as well. Read on as we define each of these types of IT services, issues found with the break-fix model, and the benefits and drawbacks involved with managed services.

What’s the Difference?

The break-fix model refers to the practice of only calling on IT professionals when there is an issue or when an upgrade is needed. This model is generally viewed as outdated by most IT experts. In fact, according to Clutch.co, 59% percent of managed service providers have already moved from a break-fix model to managed services. Managed services, on the other hand, is the practice of using a third-party IT provider to manage your firm’s information technology. Managed services can take a variety of forms, from 24/7 monitoring to cybersecurity to cloud hosting and so on.

The Problem with the Break-Fix Model

While a break-fix model may be appropriate for some clients and certain circumstances, there is clearly a reason as to why managed services have emerged as the dominant business model. Namely, it is far too easy to get tangled up in unexpected costs and misaligned goals when it comes to the break-fix model. Below are some of the key problems with this type of IT service.

  • Unpredictable Costs: Break-fix work is synonymous with reactive IT. Because the services are provided on a case-by-case basis, it makes it difficult for organizations to budget ahead of time.

  • Misaligned Goals and Incentives: In this particular model, IT providers are only paid when there are problems, meaning there is an oppositional dynamic between providers and clients (i.e., the provider only “wins” when their clients are losing). In addition, clients are not consistently working with their provider to reach a common goal, which means that your business’s objectives may not be fully understood by the IT provider.

  • Downtime: The reactive nature of the break-fix model also contributes to the issue of more downtime. Inversely, with managed services packages, MSPs are proactively looking out for suspicious activity and keeping up with regular upgrades to minimize any downtime.

  • Short-Sighted: Because work is usually billed hourly in break-fix scenarios, clients tend to choose quick, short-term solutions instead of long-lasting (but more intensive) fixes. This results in a company needing repeated temporary resolutions instead of simply solving the problem the first time.

  • More Expensive in the Long-Term: Prevention is typically less expensive than remediation, making the break-fix model the more spendy option for the long-term.

  • Clients Bear the Burden of Decision-Making: The break-fix model requires clients to take on the role of the decision-maker, even if they don’t want to be or aren’t qualified to do so.

Benefits & Drawbacks of Managed Services

There are several advantages and a couple of drawbacks for employing managed IT services, which are outlined below.

The Advantages

The pros of managed services far outweigh the cons, so let’s take a look at what kinds of benefits you can expect to gain from using an MSP:

  • Prevention: MSPs typically take a more proactive approach to prevent cybersecurity problems before they occur. Moreover, they usually have access to the newest tech, which can act as an additional barrier between your company’s data and a cyberattack.

  • Regular Updates: Updates in a break-fix model can get expensive. A managed service provider, on the other hand, will ensure that your software is always up to date and that your data is regularly backed up.

  • Predictable Costs: Managed services usually entail a low fixed monthly fee, which means that you can easily budget for your IT needs instead of fretting about surprise expenses. Many MSPs offer multiple managed services packages so that clients can pick a plan that best suits their firm’s specific needs and budget.

  • Helpdesk Support: With managed services, you will have access to 24/7 IT support via chat, email, or phone. Being able to contact an IT expert quickly to answer any of your questions or concerns is a very underrated feature of using a reliable MSP.

  • 24/7 Monitoring: IT experts are constantly monitoring your IT system for suspicious activity and other threats when you use managed services. Any issues that are found within your network can instantly be squashed before they affect your system’s performance or security.

The Disadvantages

The biggest downside to hiring a managed service provider is that most MSPs require contracts, which might feel like a big commitment, especially for smaller businesses. However, these contracts guarantee you a certain level of service so you can rest easy knowing that your IT needs will always be met. Another relevant concern with managed services is that you must relinquish some control to your provider and put a lot of trust in them since they will have complete access to your system and are responsible for its upkeep. With that said, a good MSP will outline what they can and will do for you, along with recommendations, strategic reports, and action plans. Break-fix models are lacking in this aspect, meaning that you actually have less control over what they’re doing within your IT system during repairs and upgrades.

Interested in breaking free from the antiquated break-fix model? Explore our BrightStar managed IT services and contact us today to see how our solutions are are well-worth the investment.

 

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