Sad IT professional next to $99/month price tag with downtime, ransomware, compliance, and data loss risks.

The Hidden Cost Of “Cheap” IT

July 04, 2025

You know the saying: You get what you pay for. And nowhere is that more obvious than in IT.

At first glance, a cheaper managed IT services agreement might seem like a good deal: lower monthly costs, basic support, maybe even some cybersecurity tools included. But if you look closer, you often find hidden costs, exclusions, and weak coverage that end up costing you much more over time.

After years of reviewing IT contracts for small businesses, we've seen the same issues appear repeatedly. Here are five common ways budget MSPs cut corners—and how those shortcuts turn into expensive problems for business owners.

1. Weak (Or Nonexistent) Cybersecurity Protections

Basic antivirus is not enough to call it cybersecurity. Yet many low-cost IT providers install only basic antivirus and consider their job done. There's no two-factor authentication, no advanced endpoint detection, no employee training, and no backup defense if something gets through. This matters because cyber insurance providers now require advanced cybersecurity measures before issuing policies, and without them, your claim could be denied after an attack. We've seen businesses lose tens of thousands because their MSP never set up the protections their insurance required. That's not support—it's negligence.

2. Backups That Leave Out Half Your Business

Many business owners assume that tools like Microsoft 365 or Google Workspace automatically back up their data. They don't. These tools offer only basic backup capabilities and are not comprehensive disaster recovery or long-term retention solutions. Cheaper or inexperienced IT providers often skip backups for cloud apps, CRMs, and third-party platforms, leaving critical data vulnerable. Even worse, many don't provide immutable backups, which many cyber insurance policies now require. Think your backups are covered? Ask your provider exactly what they back up—and what they don't.

3. "Surprise!" Fees For On-Site Or After-Hours Support

A common tactic is to quote a low monthly rate but then charge extra whenever you need support outside normal business hours or require an on-site visit. We believe in flat, predictable pricing, but many providers exclude on-site visits, after-hours help, and emergencies so they can add fees later. This means you hesitate to call for help, and your team delays support requests, which leads to more downtime and higher costs.

4. No Help With Vendors Or Third-Party Devices

If you have issues with phones, internet, or security cameras, some IT companies will say, "That's not our problem." They might charge hourly just to communicate with your other vendors, and if your printer or other devices aren't on their approved list, they might refuse to assist. We provide full vendor liaison and network support for everything connected to your business technology because problems don't always come from one source.

5. Inexperienced Techs And No One Managing Your Account

A major warning sign is a "one-man show" or a company that hires entry-level techs on 1099 contracts without a clear support strategy. Budget MSPs may offer help, but they don't provide guidance. What you need is a dedicated account manager who helps build your technology roadmap, proactive reviews of cybersecurity, compliance, and backup health, budget forecasting and upgrade planning, and a trusted advisor—not just a tech support ticket system.

Bottom Line: If It Looks Too Good To Be True…It Is.

Most small businesses don't realize they're underprotected until something goes wrong—a ransomware attack, server crash, or costly compliance fine. By then, it's too late. If you want IT that truly protects your business, look beyond the monthly price. Ask tough questions, get honest answers, and don't get stuck in a contract that leaves you exposed.

If you want to know what your IT contract might be missing, let us review your network. We'll evaluate your current IT solutions for free, explain what's missing if anything, and provide an honest, jargon-free opinion on how to close the gaps.

Click here or give us a call at 702-605-9998 book your FREE Initial Consultation.