And Why Managed Services Are a Better Bang-For-Your-Buck!
So, you may be wondering why the break-fix model doesn’t work. Grandpa always said, if it ain’t broke, don’t fix it. While we love Grandpa, that truism isn’t always true. Just like the customer is always right and other similar expressions, simply because people have been saying something forever doesn’t make it correct.
Still wondering why the break-fix model doesn’t work?
Break-fix fails: waiting to take action when something breaks before you fix it can end up being costly and disastrous in the long run. Where do we find the balance between upgrading routinely and only replacing when you have no choice? Also, what does this have to do with this series’ theme of hiring an IT tech?
Break-fix Model: Let’s Break the Cycle
When a company grows and gets larger, certain things that used to seem important get pushed to the back burner. Some companies may even change their model and service style after rapid growth and incorporate the break-fix model. The break-fix model is also sometimes used due to having lower resources. These are usually issues that don’t have immediate ramifications. Unfortunately, this often includes technology, such as computers, servers or copiers, as well as software. While there’s no built-in self-destruct date on these machines or programs, just because you can use something doesn’t mean that you should use it.
Many of us have computers that we may have used for close to a decade. But have you ever had a computer suddenly die on you? Or what about needing a software upgrade, but your hardware can’t handle it? These have happened to all of us at some point. While it might be an inconvenience on a personal level, it can be devastating for a business. Equipment going down unexpectedly can mean a massive loss of productivity or worse, loss of precious data.
Despite this, many still choose to rely on replacing equipment only when it breaks. This puts you at the mercy of whatever the items costs the moment you need it. You might be able to find a sale, but more than likely, you’ll end up paying the full retail price. If you choose to replace all equipment of a regular schedule, you can end up getting volume discounts.
Let’s use some general numbers here. Suppose a workstation costs $1000 per employee.If you have 25 employees that $25,000 to replace all the workstations. If you buy everything at once, you’ll end up getting a volume discount. In this case, we’ll go with a 20% discount. That would be a savings of $5,000 to replace equipment that you would already have to replace anyway — or $5,000 wasted in purchasing one by one. Not only that, but you would have no idea how much you would be paying on a monthly or yearly basis if you replace one by one. One month you could be paying $0 and the next $5,000.
Not So Easy Break-fix!
Naturally, there’s a lot more involved in replacing equipment that signing a check. For starters, when would you need to replace the hardware? Where would you purchase it? How are you going to negotiate the volume pricing? What kind of equipment do you actually need? How do you budget this out? Who’s going to go to swap out the equipment? What do you do with the old equipment once it’s replaced?
Your IT department or outsourced MSP typically handles these concerns. While the equipment in question is crucial to operations, you most likely don’t have someone with the qualifications or bandwidth to figure all of this out. That’s what an IT professional does. This is a reason that it doesn’t make financial sense not to have some sort of IT tech.
Spending Dollars Can Make Sense
As we’ve already mentioned, holding out to make purchases only when they’re absolutely necessary can end up costing you a ton in the long run. It’s logical to make sure you have someone consistently addressing your IT needs before there are issues. In the first article in this series, though, we showed how it makes the most financial sense to consider using an MSP over an in-house IT tech or a whole department.
Beyond the factors of salary, insurance and other expenses related to that employee, you also have to consider how an MSP can save you money in different ways. For example, you wouldn’t be their only customer, which means that their purchasing power is much stronger, giving you a better volume pricing. While you may only need 25 computers, that MSP might be purchasing 100 between you and their other customers, so they can negotiate a much better discount.
Also, a good MSP will replace all hardware and software not up to standard at the beginning of your contract. While this might seem like a financial shock at first, it saves you in the long run. If your MSP knows every single piece of your equipment, then future upgrades or repairs will be fast and within budget.
Another great advantage is being able to budget. Replacing your equipment only as it breaks can lead to extreme un-budgeted fluctuations in your IT expenses. When you hire an MSP, you know what you’ll be paying monthly and yearly.
Break Free from the Cycle
If you’re tired of being stuck in the same old break-fix cycle: contact us today! We pride ourselves on helping our customers not only spend less by preparing for the future, but making sure there aren’t any gaps in productivity. Our experienced staff will go over your current system in detail. Then, they’ll create a comprehensive plan that makes sense for your business. We’ll make sure that that the only cycle you’re involved with includes your success!
