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

At first glance, opting for a budget managed IT service might seem like a smart move—lower monthly fees, basic support, and perhaps some cybersecurity features included. But a closer look often reveals hidden charges, limited coverage, and critical exclusions that can cost you far more over time.

After years of analyzing IT contracts 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 your company.

1. Insufficient or Missing Cybersecurity Measures

Basic antivirus software alone is not enough to protect your business.

Yet many low-cost IT providers stop there—no two-factor authentication, no advanced endpoint detection, no employee cybersecurity training, and no 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 lose tens of thousands because their MSP failed to implement the necessary protections mandated by their insurance. This is not just poor service—it's negligence.

2. Incomplete Backups That Risk Your Critical Data

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

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

Budget or inexperienced IT providers often exclude backups for cloud applications, CRMs, and third-party tools, leaving vital data vulnerable. Moreover, many fail to provide immutable backups, which are essential for compliance with cyber insurance policies.

Think your backups are secure? Ask your current provider exactly what data is backed up—and what isn't.

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

A common tactic is to advertise a low monthly fee, then add extra charges whenever you need support outside regular business hours or require an on-site technician.

We believe in clear, predictable pricing. However, many providers exclude on-site visits, after-hours assistance, and emergency services from their base plans to increase fees later.

The consequence? You hesitate to call for help, and your team delays reporting issues—both leading to costly downtime.

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

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

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

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

5. Inexperienced Technicians and No Dedicated 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 you won't get proactive guidance.

What you deserve is:

A dedicated account manager who collaborates with you to create a tailored technology roadmap

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

Budget forecasting and strategic upgrade planning

A trusted advisor committed to your success—not just a ticketing system

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

Many small businesses remain unaware of their IT vulnerabilities until disaster strikes—be it ransomware, system failure, or hefty compliance penalties.

By then, the damage is done.

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

Curious about what your current IT contract might be missing? Let us evaluate your network at no cost. We'll identify any gaps, explain them in straightforward terms, and provide honest advice on how to strengthen your IT defenses.

Click here or call us at 817-277-1001 to schedule your FREE 15-Minute Discovery Call.