Building an Effective IT Budget: The Backbone of Digital Success

In today's rapidly evolving digital landscape, businesses rely heavily on technology to drive innovation, enhance productivity, and stay competitive. However, harnessing the power of technology requires careful planning and strategic investment. That's where an IT budget comes into play. An IT budget serves as the financial roadmap for organizations, outlining the resources and investments needed to support their technological infrastructure and achieve their business objectives. This article will delve into the crucial aspects of putting together an IT budget, providing valuable insights and practical tips to help businesses navigate the complexities of technology expenditure. So, let's explore how to build an adequate IT budget that aligns with organizational goals, maximizes ROI, and paves the way for digital transformation.

 

Part 1: Infrastructure

The first piece to look at is network and hardware infrastructure. Below is a comprehensive list of what most small and medium-sized businesses have or use and, thus, need to budget for.

Server(s)

• Since most servers are Microsoft-based, it means that they have an expiration date. For example, Server 2012 R2 expires in October of 2023. That means Microsoft will stop sending updates to the server’s Operating System. The updates are filled with security fixes and patches, making upgrading very important.

• SMB Cost: $4,000-12,000 once every 6-9 years.

Firewall

• The firewall, or the router, is the gateway to the internet. A firewall must handle your current internet speeds, accommodate future internet speed increases, block non-needed ports, scan for malicious traffic, filter foreign IP The Internet Protocol (IP) is a foundational communication protocol used for relaying packets of data across network boundaries. Structured as part of the Internet Protocol Suite, commonly known as TCP/IP, it is responsible for addressing and routing data so that it can travel across diverse interconnected networks and reach its intended destination. IP operates on the principles of packet-switching and is characterized by its use of unique IP addresses for each device connected to the network, ensuring that data packets are directed accurately. There are currently two primary versions of Internet Protocol in use: IPv4 and IPv6. IPv4, employing a 32-bit address scheme, has been the predominant version since its inception, but its address space has nearly been exhausted. IPv6, introduced to overcome the limitations of IPv4, uses a 128-bit address scheme, significantly expanding the available address space to accommodate the growing number of internet-connected devices. By facilitating the efficient and reliable transmission of data, the Internet Protocol underpins the functionality of the modern internet, enabling seamless communication and information sharing on a global scale. As network technologies continue to advance, the importance of robust and adaptable IP standards remains critical to the ongoing growth and evolution of digital connectivity. addresses, and so on.

• SMB Cost: $600-1500 once every 4-7 years. Security services in Part 2.

Switching

The switches allow businesses to add more hardwired devices to the network. A firewall/router only has a few ports. 

• Switches allow businesses to hardware more devices to their network. A hardwired connection is more reliable and faster than a wireless (WiFi) connection. Switches need at least 1Gbp/s in speed to accommodate internal speeds. 10/100 switches should be replaced.

• SMB Cost: $100-900, depending on port requirements.

Backup & Disaster Recovery

Take the “SH” out of “IT” and have a backup and Disaster Recovery A Disaster Recovery (DR) plan in the field of Information Technology (IT) is a comprehensive, documented approach that outlines how an organization can quickly resume mission-critical functions following a disruption. This disruption could be caused by a variety of incidents, ranging from natural disasters like floods and earthquakes to cyber attacks, hardware failures, and human errors. The primary goal of a DR plan is to minimize downtime and data loss, ensuring business continuity even under adverse conditions. Key components of a Disaster Recovery plan include: Risk Assessment: Identifying potential threats and vulnerabilities that could impact the organization?s IT infrastructure. Business Impact Analysis (BIA): Determining the critical business functions and the potential impact of disruptions on these functions. Recovery Strategies: Developing specific procedures to recover data, applications, and hardware. This may involve data backup solutions, alternative communication channels, and fallback locations. Implementation Plan: Detailing the step-by-step process for activating the DR plan, including roles, responsibilities, and the sequence of actions to be taken. Communication Plan: Establishing how to communicate with employees, customers, vendors, and stakeholders during and after a disaster. Testing and Maintenance: Regularly testing the DR plan through simulations and drills to ensure its effectiveness and updating it as necessary based on the results and any changes in the organization?s infrastructure or business processes. By having a well-defined Disaster Recovery plan, organizations can quickly recover from unexpected disruptions, thereby safeguarding their data integrity, maintaining customer trust, and protecting their overall business operations. plan. It’s impossible to guess when a server crashes or gets hit with ransomware. 

• Having a tested backup system is crucial.

• SMB Cost: $30-75 per month per 500GB of storage.
  
  

• Managed Wireless: Wireless systems are pretty set-it-and-forget-it. It is still good to plan for an access point dying at some point.

• SMB Cost: $150 per access point
  
  

• Power (UPS) Management. Servers, networking gear, and desktop computers should have a battery backup system if there is a power surge or a temporary drop in power. UPS devices prevent a system from an unexpected shutdown, which can result in a system failure.

• SMB Cost: $65 for a desktop unit, $300-900 for network/server units
  
  

• Phone ( VoIP Voice over Internet Protocol (VoIP) is a technology that allows users to make voice calls using a broadband internet connection instead of a traditional analog phone line. VoIP converts voice signals into digital data packets, which are transmitted over the internet and then reassembled at the receiving end. This process enables high-quality voice communication over long distances at a fraction of the cost of conventional telephone services. VoIP offers several advantages, including cost savings, especially for international and long-distance calls, and flexibility, as it allows users to make and receive calls from any internet-enabled device, such as smartphones, tablets, and computers. Additionally, VoIP services often come with advanced features like voicemail-to-email, call forwarding, and video conferencing, making it a versatile communication solution for both personal and business use. To use VoIP, users typically need an internet connection, a VoIP service provider, and compatible hardware, such as a VoIP phone or an adapter for a traditional phone. By leveraging the power of the internet, VoIP is revolutionizing the way people communicate, providing a modern, efficient alternative to traditional telephony. ) System. Most modern phone systems are running on VoIP Voice over Internet Protocol (VoIP) is a technology that allows users to make voice calls using a broadband internet connection instead of a traditional analog phone line. VoIP converts voice signals into digital data packets, which are transmitted over the internet and then reassembled at the receiving end. This process enables high-quality voice communication over long distances at a fraction of the cost of conventional telephone services. VoIP offers several advantages, including cost savings, especially for international and long-distance calls, and flexibility, as it allows users to make and receive calls from any internet-enabled device, such as smartphones, tablets, and computers. Additionally, VoIP services often come with advanced features like voicemail-to-email, call forwarding, and video conferencing, making it a versatile communication solution for both personal and business use. To use VoIP, users typically need an internet connection, a VoIP service provider, and compatible hardware, such as a VoIP phone or an adapter for a traditional phone. By leveraging the power of the internet, VoIP is revolutionizing the way people communicate, providing a modern, efficient alternative to traditional telephony. , or Voice over IP The Internet Protocol (IP) is a foundational communication protocol used for relaying packets of data across network boundaries. Structured as part of the Internet Protocol Suite, commonly known as TCP/IP, it is responsible for addressing and routing data so that it can travel across diverse interconnected networks and reach its intended destination. IP operates on the principles of packet-switching and is characterized by its use of unique IP addresses for each device connected to the network, ensuring that data packets are directed accurately. There are currently two primary versions of Internet Protocol in use: IPv4 and IPv6. IPv4, employing a 32-bit address scheme, has been the predominant version since its inception, but its address space has nearly been exhausted. IPv6, introduced to overcome the limitations of IPv4, uses a 128-bit address scheme, significantly expanding the available address space to accommodate the growing number of internet-connected devices. By facilitating the efficient and reliable transmission of data, the Internet Protocol underpins the functionality of the modern internet, enabling seamless communication and information sharing on a global scale. As network technologies continue to advance, the importance of robust and adaptable IP standards remains critical to the ongoing growth and evolution of digital connectivity. . These phone systems run over the internet. Phone systems are very stable and require little budgeting if a phone dies.

• SMB Cost: $4,000-10,000 one time. Monthly phone charges.

 

Part 2: Network Security

Network Security, or Cyber Security, is the most important item to budget for in today’s climate. The list below is not exhaustive, but a good starting point for budgeting for network security.

Firewall Security

Most firewalls offer additional security services on top of their stateful features. 

• These services include intrusion prevention & detection, gateway anti-virus, geo- IP The Internet Protocol (IP) is a foundational communication protocol used for relaying packets of data across network boundaries. Structured as part of the Internet Protocol Suite, commonly known as TCP/IP, it is responsible for addressing and routing data so that it can travel across diverse interconnected networks and reach its intended destination. IP operates on the principles of packet-switching and is characterized by its use of unique IP addresses for each device connected to the network, ensuring that data packets are directed accurately. There are currently two primary versions of Internet Protocol in use: IPv4 and IPv6. IPv4, employing a 32-bit address scheme, has been the predominant version since its inception, but its address space has nearly been exhausted. IPv6, introduced to overcome the limitations of IPv4, uses a 128-bit address scheme, significantly expanding the available address space to accommodate the growing number of internet-connected devices. By facilitating the efficient and reliable transmission of data, the Internet Protocol underpins the functionality of the modern internet, enabling seamless communication and information sharing on a global scale. As network technologies continue to advance, the importance of robust and adaptable IP standards remains critical to the ongoing growth and evolution of digital connectivity. filtering, content filtering, etc.

• SMB Cost: $300-900 per year

Email Security

• Email is the main target for ransomware at the moment. Having an email service that scans all incoming emails is crucial.

• SMB Cost: $2-4 per user per month
  
  

• Endpoint Security. Having traditional anti-virus isn’t enough anymore. Businesses are moving towards Next Generation Anti-Virus / Endpoint Detection & Response software. This NGAV uses Artificial Intelligence Artificial Intelligence (AI) is revolutionizing the fields of IT, hosting, cloud computing, web development, and digital marketing by enabling systems to perform tasks that traditionally required human intelligence. In IT, AI enhances cybersecurity measures through advanced threat detection and response mechanisms, automates routine maintenance tasks, and optimizes network management. Hosting platforms leverage AI to improve server performance, anticipate hardware failures, and provide automated customer support via chatbots. In the realm of cloud computing, AI plays a critical role in data analytics, offering predictive insights and real-time processing capabilities that drive business intelligence. AI-powered tools facilitate efficient resource management, enabling dynamic scaling and cost optimization. Web development benefits from AI through the creation of intelligent design assistants, automated testing, and enhanced user experience personalization. Digital marketing is perhaps one of the most impacted fields, with AI driving sophisticated consumer insights, targeted advertising, and customer behavior analysis. AI algorithms analyze vast amounts of data to identify trends, optimize ad placements, and personalize content, ensuring that marketing efforts are both efficient and effective. By integrating AI into these domains, organizations can harness smarter technologies to innovate, streamline operations, and deliver superior user experiences. to stop threats. This might be the second most important item in preventing attacks.

• SMB Cost: $5 per device per month.
  
  

• Multi-Factor Authentication Multi-Factor Authentication (MFA) is a security enhancement that requires users to verify their identity using multiple credentials before gaining access to a system, application, or service. This layered approach to security helps ensure that the person requesting access is indeed who they claim to be, significantly reducing the risk of unauthorized access. MFA generally involves a combination of two or more of the following factors: Something you know: A password, PIN, or answer to a security question. Something you have: A physical token, smart card, or a mobile phone to receive a verification code. Something you are: Biometric identifiers, such as a fingerprint, facial recognition, or voice, that uniquely identify the user. By requiring multiple forms of verification, MFA adds an additional layer of defense against potential threats, even if one factor (such as a password) becomes compromised. For instance, even if an attacker obtains a user's password, they would still need the second form of authentication to gain access. In today's digital landscape, where cyber threats are increasingly sophisticated, implementing MFA is a critical step for organizations to protect sensitive data and systems. It enhances security for end-users and across the enterprise, making it a fundamental component of a robust cybersecurity strategy.
  Although a nuisance, MFA Multi-Factor Authentication (MFA) is a security enhancement that requires users to verify their identity using multiple credentials before gaining access to a system, application, or service. This layered approach to security helps ensure that the person requesting access is indeed who they claim to be, significantly reducing the risk of unauthorized access. MFA generally involves a combination of two or more of the following factors: Something you know: A password, PIN, or answer to a security question. Something you have: A physical token, smart card, or a mobile phone to receive a verification code. Something you are: Biometric identifiers, such as a fingerprint, facial recognition, or voice, that uniquely identify the user. By requiring multiple forms of verification, MFA adds an additional layer of defense against potential threats, even if one factor (such as a password) becomes compromised. For instance, even if an attacker obtains a user's password, they would still need the second form of authentication to gain access. In today's digital landscape, where cyber threats are increasingly sophisticated, implementing MFA is a critical step for organizations to protect sensitive data and systems. It enhances security for end-users and across the enterprise, making it a fundamental component of a robust cybersecurity strategy. is the most essential item on this list. MFA Multi-Factor Authentication (MFA) is a security enhancement that requires users to verify their identity using multiple credentials before gaining access to a system, application, or service. This layered approach to security helps ensure that the person requesting access is indeed who they claim to be, significantly reducing the risk of unauthorized access. MFA generally involves a combination of two or more of the following factors: Something you know: A password, PIN, or answer to a security question. Something you have: A physical token, smart card, or a mobile phone to receive a verification code. Something you are: Biometric identifiers, such as a fingerprint, facial recognition, or voice, that uniquely identify the user. By requiring multiple forms of verification, MFA adds an additional layer of defense against potential threats, even if one factor (such as a password) becomes compromised. For instance, even if an attacker obtains a user's password, they would still need the second form of authentication to gain access. In today's digital landscape, where cyber threats are increasingly sophisticated, implementing MFA is a critical step for organizations to protect sensitive data and systems. It enhances security for end-users and across the enterprise, making it a fundamental component of a robust cybersecurity strategy. protects log-in attempts that are not YOU.

• SMB Cost: $2-6 per user per month. Also included in Microsoft 365 plans.
  
  

• Phishing Awareness Training. Users are the focus of phishing attacks, as it is easier for a human to make a mistake than a trained machine. Training users will assist in preventing these human errors.

• SMB Cost: $2-3 per user per month
  
  

• Patch and Update Management. Having computers updated to the latest version of Windows helps keep your machines up-to-date with Microsoft’s latest security patches.

• SMB Cost: $15-25 per machine per month.
  
  

• Password Management. Password requirements are more complex to remember. Some small businesses keep all their passwords on Excel spreadsheets to help remember them. This is an unsafe practice and can result in easy compromises. A password manager, protected by MFA Multi-Factor Authentication (MFA) is a security enhancement that requires users to verify their identity using multiple credentials before gaining access to a system, application, or service. This layered approach to security helps ensure that the person requesting access is indeed who they claim to be, significantly reducing the risk of unauthorized access. MFA generally involves a combination of two or more of the following factors: Something you know: A password, PIN, or answer to a security question. Something you have: A physical token, smart card, or a mobile phone to receive a verification code. Something you are: Biometric identifiers, such as a fingerprint, facial recognition, or voice, that uniquely identify the user. By requiring multiple forms of verification, MFA adds an additional layer of defense against potential threats, even if one factor (such as a password) becomes compromised. For instance, even if an attacker obtains a user's password, they would still need the second form of authentication to gain access. In today's digital landscape, where cyber threats are increasingly sophisticated, implementing MFA is a critical step for organizations to protect sensitive data and systems. It enhances security for end-users and across the enterprise, making it a fundamental component of a robust cybersecurity strategy. , can alleviate the stress of keeping track of all user’s passwords. Most password managers also have administrative controls in place to manage employee’s passwords as well.

• SMB Cost: $2-7 per user per month.

 

Part 3: Cloud Investment

Microsoft 365

Microsoft Office (Word / Outlook / Excel / PowerPoint / etc.) has been integral to most business office users. With the constant updates and features coming to it, Microsoft 365’s business suite has made a lot of sense for most businesses. It includes more than just the apps. It includes:

• Hosted Email Exchange allows Microsoft to update email services and give almost 100% email uptime. 

• Personal (employee) cloud storage

• Organizational cloud storage

• Security features

• Remote work solutions and more! 

SaaS platforms

• It is much easier to move local software to the cloud. That way, software support, and backend services are covered.

IaaS services

• Customers requiring a server may look to virtualize their server in the cloud. Microsoft Azure allows businesses to put their entire customer server in the cloud for easier management.