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, opting for a low-cost managed IT service might seem like a smart choice—lower monthly fees, basic support, and maybe some cybersecurity features included. But look closer, and hidden fees, limited coverage, and critical exclusions often emerge, leading to much higher costs 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 these shortcuts can create expensive problems for your business.

1. Insufficient or Missing Cybersecurity Protections

Basic antivirus software is not enough to secure your business.

Many budget IT providers stop at installing simple antivirus and call it done—no two-factor authentication, no advanced endpoint protection, no staff training, and no backup plans if a threat bypasses defenses.

Why is this critical? Cyber insurance companies now require robust cybersecurity measures to qualify for coverage. Without them, your insurance claim might 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 isn't just poor 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 fully back up their data.

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

Low-cost or inexperienced IT providers often exclude backups for cloud applications, CRMs, and third-party tools, leaving vital data vulnerable. Additionally, many don't provide immutable backups, which are increasingly required by cyber insurance policies.

Think your backups are secure? 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 but add extra charges whenever you need support outside regular business hours or require an on-site visit.

We stand for transparent, flat-rate pricing. Unfortunately, many providers exclude on-site visits, after-hours assistance, and emergency services from their base plans to increase your costs later.

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

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

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

They might even charge hourly fees just to coordinate with your other vendors. Plus, if your printer or device isn't on their "approved" list, they could refuse to assist altogether.

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

5. Unqualified 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 clear support strategy.

Budget MSPs might offer reactive help but won't provide strategic guidance.

What you deserve is:

A dedicated account manager to develop your technology roadmap

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

Forecasting budgets and planning upgrades

A trusted advisor—not just a help desk ticket system

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

Many small businesses don't realize their IT coverage is inadequate until disaster strikes—whether that's ransomware, hardware failure, or costly compliance penalties.

By then, the damage is done.

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

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

Click here or call us at 503-966-2538 to schedule your FREE 15-Minute Discovery Call.

12300 SE Mallard Way, Suite 210 Milwaukie, OR 97222