A Double Negative Solution
MSP Services that emphasizes a break-fix model is bad for your MSP because income is unpredictable, service provision is also unpredictable, your reputation will be damaged, and your clients will have a less positive relationship with you. But as bad as these things are for your company, you’ve really got to look at what break-fix does to clients. Several primary damages they’ll be exposed to include:
• Productivity loss
• Diminished network performance
• More emergencies more often
• Multiplied issues
• Unexpected expenses undermining operations
With a break-fix issue, a client will definitely try to fix the problem themselves before contacting you. This likely won’t go well, serving only to increase losses in revenue due to unproductive downtime. When you finally get a call, they’ve already lost quite a bit. Then they’ve got to deal with paying you on an hourly basis. Did you know that the cost of repair— high as it may be— is only a little more than ten percent of the losses incurred from a downtime event? The other losses come from the lack of productivity. This means if you get a $10,000 bill in your pocket for fixing a client’s issue, it costs them around $100,000. That is sure to keep your MSP Services from being appreciated. In fact, even if you do excellent work, you’ll likely be disliked just because of the associated difficulties.
Diminished Network Performance
Networks naturally erode over time. Certain things get downloaded which shouldn’t, certain caches become full, technology begins to fall behind new tech solutions; struggling to keep up— the list goes on. For minor things, you’re likely not going to get a call. But be aware that every minor issue a business puts up with in lieu of contacting you will be attributed to your MSP. The client will lose money because their network is slow. Then it will crash, and they’ll have to call you, absorb the loss of the downtime, and pay you for the privilege. It wouldn’t be without the realm of possibility for clients to become suspicious your MSP allows network outages on purpose. Certainly, this is far from the truth, but that’s the kind of thinking which characterizes individuals responsible for securing IT and uninformed enough to go the break-fix route.
Break-fix services can be compared to driving a car around until it breaks down, then taking it to the mechanic, rather than simply performing regular maintenance at intervals. Not maintaining servers, networks, end-user portals, and security will riddle a network with redundancies and malware until it implodes. But this usually won’t happen all at once. One aspect of operations will go haywire here, another will go crazy there, and then your MSP gets a call. Clients are additionally given to put off regular maintenance through human nature. A managed service solution with proactive maintenance will save all that trouble; break-fix solutions will make disasters almost statistically predictable.
A slow network is going to tax many infrastructural needs, from end-user portals to IoT management— the list goes on. Basically, a failure here results in a failure there. One problem leads to another. Break-fix services can have a “domino” effect through neglect.
A network that goes down due to lack of maintenance, upgrade, and conventionally necessary support is going to cost thousands to repair— sometimes tens of thousands. The bigger the company, the higher the cost for a fix. When you consider that this is just a little more than a tenth the total cost of an IT emergency, it’s easy to see how expensive break-fix solutions will be. But an MSP can preserve their clients from such losses simply by providing education solutions internally, proactively monitoring systems, and keeping clients on the cutting edge continuously. When you can turn a potentially $100,000 bill into several hundred a month, there are no longer any spikes.
Helping Clients Optimize
MSP Services with a proactive service model will decrease costs, issues, losses, and emergencies while increasing network performance. It would be wise for your MSP to emphasize a proactive service model as opposed to a break-fix model for clients.