Few things can grind your business to a halt faster than a server crash or some other IT glitch. Every minute your system is down, you’re losing money. IT support is an unavoidable cost for modern businesses, but many business owners see these expenses as unpredictable and overwhelming.
In an effort to minimize them, you may be tempted to put off investing in IT services until you face an emergency — often referred to as the break-fix model. However, this reactive approach can lead to higher expenses in the long run, as well as severe business interruptions and damage to your reputation.
In this post, we’ll explore how managed IT services, which are proactive and predictable, can save you money while aligning with your business's goals better than the break-fix model.
Downtime is any period of time when your business's IT systems or networks are not fully functional. When your systems are down, it interrupts your operations and costs you money. Downtime can be caused by server failures, cybersecurity breaches, internet outages, or anything else that interferes with your IT systems.
The direct costs of downtime include the costs of not being able to access your systems for work purposes. If your employees can’t get on their computers, they can’t get their work done. You also lose revenue when your business operations are shut down, since you can’t make sales or deliver services.
On top of not being able to generate income, you also often have to pay for emergency IT services. Most companies charge premium rates for faster service, adding to your direct downtime costs.
Downtime expenses go beyond the direct costs. If it's extensive, downtime can damage your reputation and erode the trust your customers have in you. When your systems are down, you may also lose out on new opportunities or have to slow down existing projects.
These costs are more difficult to measure but can have a significant impact on your bottom line in the long run.
The total costs of downtime will vary by business size and industry. The average cost is estimated to be around $9,000 per minute, an exorbitant amount that’s hard for many small or midsize businesses to absorb.
This spiraling price tag is one reason that hackers target Domain Name System (DNS) servers. If they can take down a company’s IT systems, they know that the company may be willing to pay a hefty fee to get them back up and running quickly.
A managed service provider (MSP) offers an effective way to avoid many of the costs associated with downtime. Although managed IT services do represent a new expense, they’re a fixed expense that you can account for in your budget, as opposed to unpredictable emergency expenses that may hit you when you can least afford them.
Waiting to pay for IT services only when you need them can cause financial stress and uncertainty for your business. Unlike many other types of variable expenses, it’s difficult to predict how much you’ll need for IT expenses. If your business gets hacked, you could face devastating financial consequences — 60% of small companies go out of business within six months after a cyberattack.
In addition to providing the peace of mind that comes from comprehensive IT support, managed services offer flat-rate billing that simplifies your financial planning. Predictable expenses make it easier to manage your cash flow.
For example, a busy dental clinic that relies on digital imaging and scheduling software faced unpredictable IT costs and related expenses due to downtime. For some months, the clinic had no additional expenses, but in other months, IT was the highest line item in the budget.
Once it switched to managed IT services, though, the clinic had a predictable, recurring expense in the budget, which increased its financial stability.
There are already enough uncertainties to deal with in the business world. Taking a proactive approach by engaging managed IT services helps you plan out your cash flow so you're prepared when the inevitable glitches occur.
Proactive IT management doesn’t just ensure a quick response to computer network interruptions — it reduces the risks that you’ll experience in the first place. With professional IT support, your systems will be better protected and less vulnerable to technical issues and hacking attempts. Managed IT services include continuous system monitoring, software updates, security patches, and threat detection. If an issue is detected, your IT service provider can respond before the issue escalates.
There are many benefits to proactive IT monitoring, including the following.
With continuous monitoring, your managed IT services team can spot signs of suspicious activity early and respond before hackers can penetrate your system. You’ll also have faster access to restorative services if a piece of critical equipment goes down. You won’t have to pay premium prices for emergency services.
As with all equipment, proactive maintenance can extend the lifespan of your hardware by preventing problems and addressing small issues before they turn into major failures.
Managed IT services can reduce your risk of cybersecurity incidents. Almost 60% of cybersecurity breaches are caused by unpatched vulnerabilities, so applying patches as soon as they’re released can significantly reduce your chances of falling victim to a cyberattack. Managed IT service providers will handle the patches and security updates for all of your software, freeing up your team to focus on your core business operations.
For example, after a local accounting firm switched to managed IT services, the network monitoring system noted unusual outbound activity. The provider isolated the workstation, identified a ransomware attack in the early stages, and scrubbed the system before the files were encrypted. These measures saved the accounting firm from days of downtime, an extremely expensive data recovery bill, and devastating reputational damage.
In addition to providing security and technical benefits, managed IT services align with your business objectives and profitability goals as well.
Turning IT support into a fixed expense allows you to budget for it monthly rather than being caught by surprise. Managing your cash flow frees up your internal resources for strategic initiatives that can grow your business. You won’t need to hoard resources to ensure you have enough in reserve to respond to an IT emergency.
Proactive IT support also frees up your team to focus on its areas of strength instead of dealing with security patches and network traffic monitoring.
Building an in-house IT team is expensive and time-consuming. For small and midsize businesses, it’s rarely worth the effort. However, leaving your IT systems unprotected is dangerous and opens you up to serious risks.
Outsourcing your IT services is more efficient, contributing to increased profitability and business continuity. You can save money directly by preventing cyberattacks and outages, and by increasing your productivity through more efficient operations. You can also prevent a loss of revenue related to reputational damage and missed opportunities.
When you’re evaluating your ROI for managed IT services, consider questions such as the following: What is your existing risk profile, and how much time and money go into protecting your systems? What if you could completely avoid costly downtime? How much faster could your business grow with reliable, secure, optimized technology?
Managed IT services give you financial predictability, reduced downtime, increased security, and more time to focus on what truly matters — growing your business. It’s time to re-evaluate your current IT approach and consider the strategic benefits of switching to a managed service provider.
Standley Systems has been providing services to businesses in the Oklahoma and North Texas area since 1934. Our managed IT services can protect your systems and provide scalable support for strategic growth. Reach out today for a personalized consultation.