With the world upside down, there has never been a better time to predict how much your business will need to spend over the next 12 months on IT & technology. Sometimes seen as a "hidden cost," it's worth factoring in what technology investments your business will need to make in future. In this article, we will outline where the majority of your tech budget will go.
Staff hardware and laptops
Probably the most significant allocation of the budget will go towards new hardware. This is a combination of replacing systems that have reached the end of life and systems that go faulty.
Most laptops and desktop computers usually last anywhere from 3 to 5 years before a replacement is required. Leaving the replacement period longer will have a negative "unseen" impact on your business in the form of productivity. As time goes on, computer systems will slow down - and if staff have slower systems to work on, they won't get as much work done.
Other hardware to budget for includes potential servers and network equipment. Again, similar to PCs, 3-5 years is a good time to factor in renewal.
Software licensing and subscription
Back in the old days of IT, there was always a large upfront Capex expenditure on software for business. However, with the advent of software as a service, providers like Microsoft have embraced the subscription model.
Now instead of paying a large chunk of money for a copy of software, you pay a monthly or annual subscription fee. This makes budgeting more predictable but requires ongoing planning.
IT Support and Services
Whether you have an in-house IT team or outsource to a managed service provider, this is a significant and essential budget item.
