Two Companies. Same Industry. Same Size. Different Outcomes.
Two Phoenix-area companies. Same industry. Same size—about fifty employees each. Both paying for "managed IT services."
Company A pays $3,000 per month.
Company B pays $8,320 per month.
On paper, Company A is winning. They're saving over $60,000 per year on IT costs.
Company A: The "Savings" That Weren't
• Suffered a ransomware attack that cost $180,000
• Had three major outages averaging eight hours each—$360,000 in lost productivity
• Lost two key employees citing "technology frustration." Recruitment cost: $72,000
Total two-year cost: $72,000 in IT fees + $612,000 in preventable losses = $684,000
Company B: The Investment That Paid
• Blocked two attempted ransomware attacks
• Had zero major outages
• 92% employee satisfaction with technology
• Passed a vendor security audit that landed a $2.4M enterprise contract
Total two-year cost: $199,680 in IT fees. Value created: $2.4M+ in new revenue.
The Break-Fix Trap
Imagine a plumber who knows your main water line is corroded. But every few days, another pipe bursts. Every time, he rushes over, fixes the immediate problem, collects his check, and leaves. He's built a lucrative business model on your misery.
This is the break-fix IT model. They get paid when things break, so they have zero incentive to prevent problems.
The Real Costs of "Cheap" IT
Hidden Cost | Average Impact |
Downtime (per hour) | $427 average for SMBs |
Ransomware attack | $180,000+ total cost |
Employee turnover (tech frustration) | $36,000 per employee |
Lost enterprise contract (failed audit) | $500K-$2M+ opportunity cost |
The 3AM Test
If something critical breaks at 3AM, would you trust your IT provider to handle it—without you?
If the answer isn't an immediate "yes," you don't have a partner. You have a vendor. And vendors become liabilities in crises.
