July 07, 2025
You've heard the phrase "You get what you pay for." This couldn't be truer in the world of IT.
At first glance, signing up for a cheaper managed IT service sounds like a great deal: lower monthly fees, basic support, and maybe some cybersecurity tools included. But a closer look reveals hidden expenses, critical exclusions, and inadequate protection that can cost your business dearly over time.
After years of analyzing IT agreements for small businesses, we've repeatedly identified the same pitfalls. Here are the top five ways "budget" MSPs cut corners—and how these shortcuts can cause expensive problems down the road.
1. Insufficient or Missing Cybersecurity Measures
Basic antivirus software does not equate to comprehensive cybersecurity.
Yet many low-priced IT providers stop there—no multi-factor authentication, no advanced endpoint protection, no employee cybersecurity training, and no backup defenses to catch what slips through.
Why is this critical? Cyber insurance companies now mandate advanced security protocols before issuing policies, and without them, your claim could be rejected if a breach occurs.
We've witnessed companies lose tens of thousands because their MSP failed to implement the required protections. This isn't just poor service—it's reckless negligence.
2. Incomplete Data Backups Putting Your Business at Risk
Many business owners mistakenly believe Microsoft 365 or Google Workspace fully protect their data.
They don't. These platforms provide only basic backup features and do not qualify as robust disaster recovery or long-term data retention solutions.
Budget IT providers frequently omit backups for cloud applications, CRMs, and third-party systems, leaving vital information vulnerable. Additionally, many fail to provide immutable backups, now a requirement for most cyber insurance policies.
Think your backups are safe? Make sure to ask your current provider exactly what data they're securing—and what they're overlooking.
3. Unexpected Charges for On-Site Visits and After-Hours Support
A common bait-and-switch: offering a low monthly rate, then billing extra whenever you need help outside of standard hours—or if a technician has to come onsite.
We advocate for transparent, flat-rate pricing. Yet many providers exclude on-site service, emergency calls, and after-hours support to sneak in surprise fees later.
This leaves you hesitant to call for assistance, causing your team to delay reaching out, which can lead to costly downtime.
4. Lack of Support for Vendors and Third-Party Hardware
Problems with phones, internet, or security cameras? Some IT firms simply say, "That's outside our scope."
They might even charge hourly fees just to liaise with your other service providers. And if your printer or devices aren't on their approved hardware list, expect no help whatsoever.
We provide comprehensive vendor coordination and full network support for all technology connected to your business, because IT issues often arise from various sources.
5. Unqualified Technicians and No Account Management
A major warning sign is a solo operator or a company relying on entry-level 1099 contractors with no strategic plan backing their support.
With budget MSPs, you get reactive service but lack strategic guidance.
What you deserve is:
● A dedicated account manager guiding your technology roadmap
● Proactive assessments of your cybersecurity, compliance, and backup status
● Budget planning and system upgrade advice
● A trusted technology advisor—not just a ticket responder
The Bottom Line: If It Sounds Too Good to Be True, It Probably Is.
Most small businesses are unaware they're vulnerable until disaster strikes—whether it's ransomware, system failure, or a costly compliance penalty.
By then, damage is done.
If you want robust IT solutions that truly safeguard your business, focus beyond just the price. Ask the critical questions, insist on honest answers, and avoid contracts that leave you exposed.
Curious if your IT contract is missing essential protections? Let us analyze your network. We offer a free review of your current IT setup, outline any gaps, and provide straightforward, jargon-free recommendations.
Click here or call us at 801-997-8000 to schedule your FREE 10-Minute Discovery Call.
