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 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 might look appealing—offering reduced monthly fees, basic support, and perhaps some cybersecurity features included. But if you look closer, hidden expenses, limited coverage, and loopholes often emerge that can end up costing your business significantly more over time.

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

1. Inadequate or Missing Cybersecurity Measures

Basic antivirus software alone does not constitute effective cybersecurity.

Yet many low-cost IT providers stop there. They skip essential protections like two-factor authentication, advanced endpoint detection, employee training, and backup defenses for breaches.

Why is this critical? Cyber insurance providers now require robust cybersecurity protocols before issuing policies. Without these safeguards, your insurance claims could be denied after a cyberattack.

We've witnessed companies incur tens of thousands of dollars in losses because their MSP failed to implement the necessary security measures mandated by their insurance. This is not just poor IT support—it's negligence.

2. Incomplete Backup Solutions That Expose Your Business

Many business owners mistakenly believe platforms like Microsoft 365 or Google Workspace automatically back up all their data.

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

Budget IT providers often neglect backing up cloud applications, CRMs, and third-party systems, leaving critical information vulnerable. Even more concerning, many do not provide immutable backups, a requirement for many cyber insurance policies today.

Think your backups are sufficient? Ask your current provider exactly what data is protected—and what isn't.

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

A common tactic is to advertise a low monthly fee, then add extra charges whenever you require support outside regular business hours or need someone to come onsite.

We advocate for straightforward, predictable pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency services from their base rates so they can impose surprise fees later.

This results in hesitation to call for help, causing your team to delay reaching out and ultimately increasing costly downtime.

4. No Support for Vendors or Third-Party Equipment

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

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

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

5. Unseasoned Technicians and Lack of Account Management

A major warning sign is dealing with a "one-person operation" or a company that hires inexperienced techs on 1099 contracts without a clear support strategy.

With budget MSPs, you might receive reactive help, but rarely strategic guidance.

What you should expect includes:

A dedicated account manager to develop a tailored technology roadmap

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

Budget forecasting and upgrade planning

A trusted advisor, not just a help desk ticket system

Bottom Line: If It Sounds Too Good to Be True, It Probably Is.

Most small businesses don't realize their IT protections are insufficient until disaster strikes—whether that's a ransomware breach, server failure, or hefty compliance penalty.

By then, it's often too late to recover easily.

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

Curious about what your current IT agreement might be missing? Let us assess your network at no cost. We'll review your existing IT setup, identify any gaps, and provide straightforward, jargon-free advice on how to strengthen your defenses.

Click here or call us at 847-348-3381 to schedule your FREE 15-Minute Discovery Call.