IT Budgets For Small and Medium Businesses

One question I get an awful lot is “What should I be spending on I.T.?”  Most answers I’ve ever heard are overly complicated –  including everything from servers, Cloud access, monolithic printers, Software as a Service and the occasional kitchen sink.  After running operations at a diverse set of companies, I can say with some confidence that most office-based companies should be spending about $150 per employee per month on I.T.

So how did I get to that number?  I’m counting the core functions that most users need…and expect.  First, a mid-tier PC that can handle the majority of productivity apps such as email, internet access, word processing, spreadsheets and web-based suites such as CRM’s. A usable cloud space allocation and or an onsite backup device.  Network access through a hard line, Wifi, or both.  Finally, group access to multifunction printer that can handle light copying and scanning demands.

Some folks who are used to paying their $25/month O365 subscription and thinking of that as their only expense might balk, so let’s explore that. It’s important to remember that even in this age of cloud applications and everything “As-A-Service”, at the end of the day, an awful lot of IT is still good old-fashioned capital equipment. Programs don’t run themselves and databases need a home.  All that needs considered as does the cost to have some form of access to a front-line, support technician.

If you think paying less for IT than the social security tax on a $30,000/year FTE isn’t feasible, give us a call.  We’re always excited to meet a new challenge.