Budgeting can be a daunting task. While it can be challenging to think of everything to include, we have outlined categories that all IT Budgets should plan for. When working with an Outsourced IT company, this should be part of your annual review. An MSP will help you identify the cost for each of these areas and show you how it aligns with your business goals.

If you choose to plan out your IT budget, include these categories:

Hardware

Refreshing and keeping your hardware up to date is important for any business. Remember, it is always cheaper to plan and replace your hardware before it fails. If you react to failed hardware, not only can it cost more to get a replacement quicker, but you may face downtime or slower production. It is best to prioritize what needs replaced first and budget accordingly. Hardware may include machines, computers, servers, printers, networking gear, wi-fi access points, cameras, mobile devices, telephones, etc.

Software

Keeping software up to date is critical in protecting your business. Hackers know vulnerabilities in software and how to take advantage of them. Staying on the latest version and paying for your subscriptions is a must in the budget. Many Cloud providers include their software with the hosting of the application you may be using.

IT Security

Security is all too often overlooked. There is a huge increase in attacks, compromises, Ransomware as a Service, and vulnerabilities. You should budget to make sure that the right security measures are in place and regular vulnerability scans are run to understand new threats.

Disaster Recovery & Backups

It is no longer a matter of “if” something will go wrong, but “when”! Businesses rely heavy on information and technology to run their business. So, you must to ask yourself, “What if X is no longer there for us? What impact would it have on our business?” Be prepared. Invest in good backups so you don’t have to pay a Ransom and can recover from corrupted data. Plan for the worst and hope for the best.

Support & Maintenance

Regular upkeep on your IT infrastructure is an important budget category. This can include daily activities, updates, staff support to regular vulnerability scans. If you are responsible for any regulatory or compliance this is a must to prevent you from having to pay hefty fees.

IT Staff (Internal/External)

Whether you have an Internal IT Person or Team you will want to include their salaries and other benefits in your budget. If you are like most small businesses, you may also work with an Outsourced IT Company to help assist with your IT needs. Their fees should be included in your budget.

IT Education & Training

Having the best technology and systems in place is great! But you would be losing out on its benefits without proper ongoing training for your Staff. Invest in teaching your employees how to use the technology that you have in place. Teach them what to do and what not to do. Make sure they are aware of your expectations. Help them to be a security advocate for your business.

IT Projects

Every company has IT projects, whether it be upgrading hardware, changing platforms, or enhancing security. This often gets put off. Planning your priority projects can help you get the projects done, increase productivity, and spread-out cost over time, making it more manageable.

Emergency/Incident Funds

You can never know what is going to happen. When a piece of hardware is going to crash. Or a cyber incident and failed backup causes you to have to pay that ransom. It’s best to have a budget set aside for emergencies or unforeseen incidents.

While it all seems like a lot, it can be simple and affordable.