This comes up in just about everyday life scenarios, along with industries. How much should I spend on a car? How much should I spend on a home? Budgeting is one of the most important skills you can learn early in your life. With proper budgeting comes intelligent spending and an easier life!! There are a few things to mention here since we are talking about IT technology in this blog. I cannot think of any industry that has changed, more than the IT Industry in the past 5-10 years. We have seen the IT industry go from a break-fix type of service, to an absolute must-have proactive solutions-based service industry.
The fact that this industry has seen so many changes and faced so many objects, such as cyber security and hackers, is what makes it a bit confusing now. Most business owners or CEOs really have no idea how much their companies should be spending annually on their technology. The answer may surprise some and the majority of the owners that we have meetings with, are also quite unsure on this number.
So again… How much should your company be spending and budgeting regarding your technology?? The actual answer is 4-6% of your annual reoccurring revenue. Therefore, if you are a one-million-dollar company then you should budget for an annual reoccurring technology budget of $40,000 to $60,000. That number should include everything your company needs. This would include your services such as onsite help/helpdesk/cyber security software and programs AND even your hardware. Another huge mistake companies tend to make, once they make the investment into their technology, they try to hold onto their hardware for way too long. Hardware, including desktops/laptops really start to get old and slower and pose more security risks after 3 years. A server will generally have a lifespan of 5-7 years tops. In our experience, we see businesses try to hold onto hardware so long that it starts to not only effect work performance, but also work moral. There is no need to do this in 2023. A good IT partner will usually have a flat rate plan that will not only supply you with the services that you need to operate efficiently, but also the hardware. KRS IT has run its hardware as a service program now for about 5 years, and it’s only getting more popular amongst our clients.
We hope this blog has been helpful and informative, and if you would like more in depth help for future planning, feel free to email us at firstname.lastname@example.org, or you can always reach out to us, and speak to a live representative at 201-402-1900. Take care, stay safe and always informed everyone!!