Don’t Make These 5 IT Budgeting Mistakes!
Budgeting for your IT, both short and long-term, can be a complicated process. If you’re planning to start your new IT budget, make sure to avoid these top 5 common IT budget mistakes.
Let me guess — since you’re reading this article, you’re probably looking for some advice about IT budgeting. The good news is that you’ve come to the right place.
IT budgeting often isn’t easy for people who don’t have an IT background. Whether you’re managing a small business or are the CFO of a larger organization, if you’re not also an IT expert, it can be difficult to know how to approach the IT budgeting process.
The fact is that you shouldn’t have to be an IT expert to do your job. With a little help (like what I’m offering in this article, or more directly, if you contact my team) you should be able to set up a budget that’s accurate and easy to follow.
To start, instead of focusing on best practices, I think it’ll be a better use of your time to understand what to avoid in the budgeting process…
5 Common Mistakes With IT Budgets (And How To Avoid Them)
- Overlooking Long Term Cloud Costs: In the short term, it’s easy to justify the ongoing operating costs of a cloud-based solution. You can pay as you go, and measure its value and your organization’s performance quarter by quarter. However, a key problem with this is that many organizations fail to think long-term. If the cloud-based app is a key part of your operations, and will conceivably be for years, then you’d likely save money in the long run by outright buying it and managing it internally. Yes, it will constitute a more expensive capital cost, but over the course of many years, this will save you on the month to month fees.
- Forgetting About Training: Many organizations see IT and cybersecurity training as a discretionary cost and leave it off the table until they know they’re having a good year. This way of thinking drastically undersells the importance of this training. Training is a vital part of both boosting productivity and maintaining security. The better your staff understands how to use their IT resources and contribute to your cybersecurity, the more efficient your organization will be, and the less likely it is that you’ll get hit by a costly cybercrime attack.
- Overinvesting In Storage: Year by year, your organization will accumulate more data, which will require more storage space. Many owners, managers, and CFOs tackle this problem by paying outright for more storage space, which will be more and more expensive each year. There’s a better way — invest in tiered storage that reflects the tiered value and use of your data. Old archive data doesn’t need to be readily accessed and can be left on cheap archival storage. More important data, necessary for daily operations, should be kept on more expensive and responsive solid-state storage.
- Delaying Updates & Upgrades: As with training, it can be easy to put off hardware and software refresh processes. Even though something’s old, it’s easy to assume it can still be used, allowing you to save the money that would’ve gone to replacing it. This is a dangerous line of thinking — old technology is slow, ineffective and unsecured. Using it after its end of life will kill productivity and put your organization at risk.
- Outsourcing Too Much (Without Internal Continuity): While it’s often necessary to outsource major IT projects, make sure your internal IT staff understands what’s being done and how to manage it long-term. You don’t want a one-time engagement with an outsourced vendor to turn into an ongoing cost because they never brought your team up to speed.
Budget Your IT More Accurately With Expert Advice From The HelpDesk Company
When you employ a strategic approach to IT budgeting, you’ll have a planning and decision-making tool that will ensure you maximize the benefits of your technology investments.
However, knowing about IT budgeting and actually making it happen are two very different things. If you don’t have an internal IT manager or a CFO to handle this for you, you may not have the knowledge or time on your own to manage the process effectively.
Our team will help — put our expertise to use to budget your IT more effectively. Here’s how it works:
- Book a free consultation at a time that works for you.
- Explain what you need out of your IT, and what your approximate budget has been, based on previous years.
- Ask us every IT question you have.
- Use our expert advice to develop a more accurate budget.