Many Australian businesses eventually reach the same question: should we keep paying for IT only when something breaks, or move to a managed IT support model? First, we need to understand the difference between the two, and why they are two different approaches. By the end of this you should have a clear understanding of which direction your business should go.
What is break fix / Ad-hoc IT support?
Ad-hoc refers to a more reactive and unplanned approach to managing it services. It often involved addressing IT issues when they arise without a predefined plan or strategy
There are no formal plans or long-term strategies in place which makes the environment lack predictability and makes it a challenge when it comes to facing IT issues.
This also makes the cost unpredictable and can vary widely on the nature and frequency of the issues. Therefore, it’s difficult for a business to budget for these expenses.
What is managed IT services?
Managed IT is a proactive and structured approach to IT. Typical you will have a range of technicians who have the capabilities and knowledge to service your system as everything has been well documented and managed.
Unlike break fix, there are strategies in place, documentation, and on-going maintenance. This includes security patches, backup monitoring, security software and monitoring of your hardware.
Think of managed IT as having you own IT team without the costs of hiring a full-time employee at a fraction of the cost.
Managed IT vs Ad-Hoc IT Support Comparison
| Category | Ad-Hoc IT Support | Managed IT Support |
| Typical Australian Pricing | Anywhere from $140 to $240 per hour | Commonly $99 to $199+ per endpoint/user per month |
| Cost Predictability | Low. Costs vary depending on issues | High. Easier to budget each month |
| Response Times | Usually, best effort or based on availability | Defined response times (SLAs) and priority handling |
| Monitoring | No monitoring | Ongoing monitoring of devices, servers and hardware |
| Cybersecurity | Often reactive after an issue occurs | Preventative security tools, patching, and alerts |
| Backups | May be checked only when asked | Regular backup monitoring and recovery planning |
| Strategic Advice | Limited to individual jobs | Ongoing technology planning and business alignment |
| Best Suited For | Very small businesses with basic IT needs. | Businesses that rely on technology every day. |
| Main Advantage | Lower commitment if you rarely need IT help | Predictable cost, faster support and better risk management |
| Main Risk | Problems are often discovered too late | Higher monthly commitment, but lower operational risk |
Real-World Example: When Ad-Hoc IT Became More Expensive
One of the biggest misconceptions about ad-hoc IT support is that it is always the cheaper option.
Only recently, we had advised a business that they had reached the point where a managed IT service would be the recommended option for his business. For over 1 year he had been umming and ahhing.
Their systems had become important to daily operations, and they had enough risk in the environment that proactive monitoring, security management, backup checks and regular maintenance would have made sense.
At the time, they decided to continue with ad-hoc IT support. They were comfortable looking after their own systems day to day, and our role was to assist when something went wrong.
Fast forward around 12 months, and we received an urgent call from the client: “Our server seems to be down, and we need someone to come out as soon as possible.”
Unfortunately, the business later suffered a ransomware incident. The recovery process involved emergency response, data recovery, system rebuilds, downtime, investigation, security hardening and a large amount of disruption to the business. By the end of the incident, the total recovery-related cost was more than $80,000 which included paying the ransom as he no workable backups!
After going through that experience, the business moved onto a managed IT support agreement and told me “Denis… next time just tell me John you don’t know what you’re talking about.”
This is not to say that managed IT can prevent every possible issue. But it would have stopped this long before it became a problem.
So, what should I choose for my company?
There are 3 things you want to be looking at before deciding the correct approach for you. As good as managed IT services does sound, it’s not for everyone.
- Size and complexity: If you are a small business with less than 5 PC, don’t see yourself growing any time soon and have very simple IT needs, then you may find ad-hoc to be more cost efficient.
- Budget considerations: Ad-hoc may seem to initially be more cost effective, but as you grow the unpredictability with fixing issues and staff support requests make managed IT more cost-efficient in the long run. Also you know what your fixed price is per month, you don’t get a bill shock every time someone comes out to fix your computers.
- Risk Tolerance: If your business has a low tolerance for downtime and data loss, then you are more likely to opt for managed IT due to its proactive nature and the focus on IT security. You want someone who has documented your systems and understand how to get them up and running asap.
It really boils down to your size, budget and risk tolerance. If you are a small retailer, tradesmen, café or restaurant then ad-hoc / break fix support would be more suitable for your needs. However, if you have multiple computer systems with multiple staff, and can’t afford to have down time. Then chances are you would fit into managed IT services.
In the video below, Naz will break down the key differences between Adhoc support and Managed IT Services (MSPs), and why the “cheaper” option can actually cost your business far more in the long run in downtime, lost productivity, and headaches.
