The break-fix vs. managed IT debate is older than most IT companies, but it keeps coming up because business owners genuinely don’t know which model is right for them. The honest answer: it depends on your business size, growth trajectory, and how much downtime risk you can absorb.
Let’s walk through the actual numbers for a typical Fraser Valley small business.
The break-fix model
Break-fix means you call your IT provider when something is broken. They show up (or remote in), fix it, and bill you by the hour. There’s no monthly fee. You only pay for what you use.
Typical break-fix rates in BC: $130–$180/hour, with a minimum of 1 hour per incident.
The managed IT model
Managed IT means you pay a flat monthly fee, and your IT provider proactively monitors your systems, patches them, prevents issues, and resolves any problems that come up — all included in that monthly fee.
Typical managed IT rates in BC: $120–$200/user/month, depending on service tier.
Real-world cost comparison: 20-person business
Let’s use a 20-person Langley business as the example.
Break-fix annual cost (typical year)
- Average IT incidents per month: 8–12 (printers, email, password resets, slow computers)
- Average time per incident: 45 minutes
- Annual hours: ~85 hours
- Hourly rate: $160
- Annual labor cost: $13,600
Plus:
- Antivirus licenses (self-managed): ~$1,000/year
- Email security: ~$1,500/year
- Backup software: ~$1,200/year
- Hidden costs (employee downtime at $50/hour x 85 hours): ~$4,250
True annual break-fix cost: ~$21,500
Managed IT annual cost (mid-tier)
- 20 users x $150/user/month x 12 = $36,000
This includes all the antivirus, email security, backup, monitoring, patching, support, and proactive management you’d otherwise pay for separately.
Wait — managed IT is more expensive?
On paper, yes. But that’s the wrong comparison. The right comparison is:
| Factor | Break-Fix | Managed IT |
|---|---|---|
| Annual cost | $21,500 | $36,000 |
| Monthly downtime | ~7 hours | ~1 hour |
| Cybersecurity posture | Reactive | Proactive |
| Cost predictability | Volatile | Fixed |
| Strategic IT planning | None | Included |
| Major incident risk | High (one ransomware event = $200K+) | Significantly reduced |
When break-fix actually makes sense
Break-fix is the right model for businesses that:
- Have fewer than 5 employees
- Have minimal compliance requirements
- Have very simple IT setups (laptops + one cloud service)
- Can absorb significant downtime without revenue impact
When managed IT is the right call
Managed IT is the right model for businesses that:
- Have 10+ employees
- Have any compliance requirements (PIPEDA, PHIA, FINTRAC)
- Depend on IT for revenue (e-commerce, retail POS, professional services)
- Have grown beyond ad-hoc IT management
- Need predictable IT costs for budgeting
The middle path: co-managed IT
For some Fraser Valley businesses, especially those with an in-house IT person who’s overwhelmed, a co-managed model works best. Your in-house person handles day-to-day issues, and a managed IT provider handles security, patching, monitoring, and after-hours support. This is increasingly common for businesses with 30–100 employees.
If you’d like a specific cost breakdown for your business, we offer a free 30-minute IT assessment. We’ll review your current spend, calculate what managed IT would cost for your specific environment, and give you an honest recommendation — even if that’s ‘stick with break-fix for now.’
