Sad IT professional next to $99/month price tag with downtime, ransomware, compliance, and data loss risks.

The Hidden Cost Of “Cheap” IT

July 07, 2025

You've heard it before: You truly get what you invest in. This is especially true in the world of IT.

At first glance, a low-cost managed IT service plan might appear to save you money — with lower monthly fees, basic support, and perhaps some cybersecurity features included. But when you look closer, hidden fees, limited protections, and gaps in coverage often surface, ultimately costing your business much more.

After years of analyzing IT contracts for small businesses, we've identified recurring issues. Here are five common ways budget MSPs cut corners — and how those shortcuts can lead to expensive problems for business owners.

1. Inadequate or Missing Cybersecurity Measures

Simply installing basic antivirus software is not sufficient cybersecurity.

Yet many low-priced IT providers stop there. They omit essential layers like two-factor authentication, advanced endpoint detection, employee cybersecurity training, and reliable backup defenses.

Why is this critical? Cyber insurance companies now mandate advanced cybersecurity protocols before offering coverage. Without these protections, your insurance claim could be denied after a cyberattack.

We've witnessed businesses lose tens of thousands because their MSP failed to implement the necessary security measures required by their insurer. This isn't just poor IT support — it's negligence.

2. Incomplete Backup Solutions That Risk Your Critical Data

Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace provide full data backups.

In reality, these services offer only basic backup features and are not designed for comprehensive disaster recovery or long-term data retention.

Budget or inexperienced IT providers often neglect backing up cloud applications, CRMs, and third-party systems, leaving vital data vulnerable. Even more concerning, many do not provide immutable backups, now required by numerous cyber insurance policies.

Think your backups are safe? Ask your current provider exactly what data they are protecting — and what they're missing.

3. Hidden Charges for On-Site and After-Hours Assistance

Here's a common bait-and-switch: advertise a low monthly fee, then add extra charges whenever you require support outside regular business hours or need an on-site technician.

We advocate for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours support, and emergency services from their base plans to impose additional fees later.

The outcome? You hesitate to call for help, causing your team to delay reporting issues, which leads to longer downtime and higher costs.

4. Lack of Support for Vendors and Third-Party Devices

Encounter problems with your phones, internet, or security cameras? Some IT firms will simply say, "That's outside our scope."

They may even charge hourly fees just to communicate with your other vendors. If your printer or other devices aren't on their "approved" list, they might refuse assistance altogether.

We provide comprehensive vendor coordination and network support for all devices and services connected to your business technology, because issues can originate from multiple sources.

5. Underqualified Technicians and No Dedicated Account Management

A major warning sign is working with a "one-person operation" or a provider relying on entry-level contractors with no strategic oversight.

With budget MSPs, you might receive reactive support, but lack proactive guidance.

What you deserve is:

A dedicated account manager to craft a tailored technology roadmap

Regular, proactive assessments of your cybersecurity, compliance, and backup status

Strategic budget planning and upgrade scheduling

A trusted advisor relationship — not just a ticket-based support system

Final Thought: If It Seems Too Good To Be True, It Probably Is.

Many small businesses remain unaware they lack adequate protection until a crisis hits — whether it's a ransomware breach, server failure, or costly compliance violation.

By then, it's often too late.

If you want IT services that truly safeguard your business, focus beyond just the price. Ask the tough questions, demand clear answers, and avoid contracts that leave you vulnerable.

If you're curious about what your IT contract might be missing, let us evaluate your network. We'll conduct a free review of your current IT setup, explain any gaps in simple terms, and provide honest advice on how to strengthen your defenses.

Click here or call us at 615-989-0000 to schedule your FREE 15-Minute Discovery Call.