IT budget

In the face of cloud computing and growing security concerns, most businesses have to budget carefully for their IT spending. However, given that technology is changing all the time, it’s hard to know how best to balance your IT expenditure, as well as which areas to factor into your calculations.

There are multiple considerations to take into account when budgeting for IT. These include hardware, software and support, as well as the changing needs of your business customers. With these factors in mind, here are some tips to help you allocate your IT budget.

Fixed IT costs

Before you make a budget for your ongoing IT costs, you need to consider the cost of your existing hardware, such as PCs, laptops and servers. Although you may have paid for some of these items outright, there may be ongoing maintenance, active service agreements and upkeep costs to consider.

The cloud

Many organisations now use the cloud to complete critical operations like data storage, business management systems and security. As a result, more than 20% of IT budgets are now being spent on the cloud, according to the latest research from Garter. Cloud computing has many advantages – such as security, mobility and data insights – but it is also cost-effective, so you stand to save money by budgeting for the cloud.

According to a study by SalesForce, 94% of businesses claimed they saw an improvement in overall security after switching to the cloud, while 91% said the cloud made it easier for them to meet government data regulations such as GDPR.

Security

It’s also imperative that you budget for cybersecurity. Before consolidating or replacing your old software, you must have full knowledge of the security solutions you use already and the capabilities they provide. Once you understand their effectiveness, you should try to consolidate wherever possible to reduce security costs. You should avoid partnering with multiple security vendors, as this will increase resource spending with no guarantee of better security measures.

Training

Whatever IT solutions you use for your business, you should accept that there are always going to be training expenses. These need to be budgeted for, so compare the costs of in-house VS offsite training for new systems, and look for vendors who will throw in employee training as part of the package. Don’t forget to factor in business revenue lost to company downtime or employees taken out of the business; it’s important to predict your losses, so try to leave no stone unturned.

Support

Whether you’re a large enterprise or a small business, you’re going to need dedicated, ongoing IT support. If you have room in your budget, you may decide to hire an IT manager or team so that you always have an expert on hand should problems arise. If you’re a smaller company with limited resources, you may consider opting for external support from an IT provider.

Don’t get left behind: let us allocate your IT budget

One of the major mistakes companies make is to resist change in order to reduce spending. However, this approach ignores an important fact: all new IT systems are created to help save businesses money, either by improving security measures, easing workflow, enabling remote working or boosting productivity.

Technology makes your business faster and future-proofs your systems, and the changing role of IT is something that demands your investment. Old devices will eventually need to be replaced, and the software will become outdated. There’s no way of avoiding IT spending, so your best course of action is to allocate your spending according to specific business goals.

CBSIT can work with you to identify your IT goals and pinpoint the areas that are most in need of resources, so you’ll know how to allocate your IT budget. We can also offer a complete IT solution for your business, including support, management, cloud-based systems and more. For more information, visit our website or contact us today.