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 probably heard the phrase: You get what you pay for. This is especially true in the world of IT.

At first glance, a low-cost managed IT service plan may seem like a smart choice: reduced monthly fees, basic support, and maybe some cybersecurity features included. But if you look closer, hidden expenses, limited coverage, and critical exclusions often emerge, ultimately costing you far more down the road.

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 your business.

1. Inadequate or Missing Cybersecurity Measures

Basic antivirus software alone does NOT provide sufficient cybersecurity.

Unfortunately, many budget IT providers stop there—offering no two-factor authentication, no advanced endpoint protection, no staff training, and no backup defenses if a threat slips through.

This is critical because cyber insurance companies now require advanced cybersecurity protocols before issuing policies, and without them, your claim might be denied after an incident.

We've witnessed businesses lose tens of thousands due to their MSP's failure to implement necessary protections mandated by their insurance. This is not IT support—it's negligence.

2. Incomplete Backup Solutions That Risk Your 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.

Low-cost or inexperienced IT providers often neglect backups for cloud applications, CRMs, and third-party platforms, leaving vital data vulnerable. Even worse, many fail to provide immutable backups, now a mandatory requirement for many cyber insurance policies.

Think your backups are secure? Ask your current provider exactly what data they're protecting—and what they're not.

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

Here's a common tactic: advertise a low monthly fee, then add extra charges every time you require support outside normal business hours or need an on-site visit.

We believe in clear, predictable pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency support from their flat rates so they can bill you additional fees later.

The consequence? You hesitate to call for help, and your team delays reporting issues, leading to longer downtime and higher costs.

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

Experiencing problems with your phones, internet, or security cameras? Some IT providers will simply say, "That's not our responsibility."

They may even charge hourly fees just to communicate with your other vendors. And if your printer or other hardware isn't on their "approved" list, they might refuse to assist altogether.

We offer comprehensive vendor coordination and network support for all technology connected to your business, because issues often arise from multiple sources.

5. Unskilled Technicians and No Dedicated Account Management

One major warning sign is a "one-person operation" or a company relying on entry-level contractors without a clear support strategy.

With budget MSPs, you might receive technical assistance, but you won't get strategic guidance.

What you deserve is:

A dedicated account manager to help you plan your technology roadmap

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

Budget forecasting and upgrade planning

A trusted advisor who supports your business beyond just handling tickets

The Bottom Line: If It Seems Too Good To Be True, It Probably Is.

Most small businesses don't realize they're inadequately protected until disaster strikes—whether it's a ransomware attack, server failure, or costly compliance violation.

By then, the damage is done.

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

If you're unsure what your IT contract lacks, let us evaluate your network. We'll assess your current IT setup at no cost, identify any gaps, and provide straightforward, jargon-free advice on how to strengthen your defenses.

Click here or call us at 630-895-8208 to schedule your FREE Consult.