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 with its reduced monthly fees, basic support, and maybe some cybersecurity features included. However, a closer look often reveals hidden expenses, limited coverage, and crucial exclusions that can lead to far greater costs down the line.

After years of analyzing IT contracts for small businesses, we've identified recurring pitfalls. Here are five common ways "budget" MSPs compromise quality—and how these shortcuts can cause expensive problems for your business.

1. Insufficient or Missing Cybersecurity Measures

Basic antivirus alone does not equate to effective cybersecurity.

Yet, many budget IT providers stop at this minimal protection. They neglect essential safeguards like two-factor authentication, advanced endpoint detection, employee security training, and backup defenses for breaches.

Why is this critical? Cyber insurance companies now require robust cybersecurity protocols before issuing policies, and without them, your claim could be denied after an incident.

We've witnessed businesses suffer massive financial losses because their MSP failed to implement the necessary protections mandated by their insurance. This isn't just poor service—it's negligence.

2. Incomplete Backup Solutions That Risk Your Data

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 do not provide comprehensive disaster recovery or long-term data retention.

Lower-priced or inexperienced IT providers often omit backups for cloud applications, CRMs, and third-party tools, leaving vital information vulnerable. Even more concerning, many lack immutable backups, now a standard requirement for many cyber insurance policies.

Think your data is safe? Verify with your current provider exactly what is—and isn't—being backed up.

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

Here's a common tactic: offer a low monthly rate but add fees every time you require support outside regular hours or need someone on-site.

We champion transparent, flat-rate pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency services from their base fees, leading to surprise charges.

The consequence? You hesitate to call for help, and your team delays reporting issues, which only increases costly downtime.

4. Refusal to Assist with Vendors or Third-Party Devices

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

They may even charge hourly fees just to communicate with your other vendors. If your printer or device isn't on their "approved" list, they might refuse service entirely.

We provide comprehensive vendor coordination and network support for all technology connected to your business, because issues can arise from any source.

5. Lack of Experienced Technicians and Account Management

A major warning sign is a "one-person operation" or a company relying on entry-level contractors without a strategic support plan.

With budget MSPs, you might receive reactive help, but not proactive guidance.

What you deserve is:

● A dedicated account manager to develop your technology roadmap

● Regular evaluations of your cybersecurity, compliance, and backup status

● Budget planning and upgrade strategies

● A trusted advisor, not just a ticket responder

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

Many small businesses remain unaware they're underprotected until disaster strikes—whether that's a ransomware attack, server failure, or costly compliance penalty.

By that time, it's often too late.

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

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

Click here or call us at 720-449-3379 to schedule your FREE 15-Minute Discovery Call.