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David J Steele
- Decoding the Dollars: A Guide to Help Develop Your IT Budget for 2024
Knowledge Base
Decoding the Dollars: A Guide to Help Develop Your IT Budget for 2024
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Most IT budgets are divided into several key categories. The largest portion is typically allocated to maintaining and updating existing IT infrastructure, which encompasses hardware, software, and networks. Another significant portion is dedicated to IT services, ranging from technical support to cloud services. A smaller, yet important, portion of the budget is set aside for innovation and development of new technologies. Finally, a portion is allocated for security, training and development to ensure IT staff stay current with the latest advancements and best practices. These proportions may vary based on the specific needs and goals of each company.
Cyber Security
Certainly, in today's digital age, it is crucial to not overlook or undervalue the significance of cybersecurity in IT budgeting. The allocation for cybersecurity measures isn't a one-size-fits-all approach, instead, it varies greatly depending on the level of technology adoption a company has made in recent years. Progressive organizations that have adopted advanced digital technologies, such as cloud computing and AI, may face more sophisticated cyber threats, hence requiring a more substantial cybersecurity budget. Conversely, businesses still in the early stages of digital transformation may not require as large a cybersecurity budget, but it's still important to allocate a portion to protect existing IT infrastructure and data.
Any organization's IT budget allocation needs to prioritize core cybersecurity items like Multi-Factor Authentication (MFA), Endpoint Detection and Response (EDR), and Offsite Encrypted Backups. MFA provides an added layer of security by requiring users to provide two or more verification methods, adding a significant barrier to unauthorized access. Conversely, EDR solutions monitor and respond to threats on endpoints, such as workstations and servers, making them indispensable in a landscape of escalating threats. Offsite Encrypted Backups, on the other hand, ensure business continuity in the event of data loss, corruption, or a cybersecurity incident. By prioritizing these items in all IT budgets, organizations can safeguard their data and IT infrastructure more effectively and resiliently.
Still running Windows 10?
Another key change in IT that will affect many organizations is the End Of Life of Microsoft Windows 10. According to Microsoft's published lifecycle factsheet, Windows 10, released in July 2015, will reach its end of life on October 14, 2025. After this date, Microsoft will discontinue all support, including paid support and security updates. This is super important because the announcement of Windows 11 came with an important caveat: not all hardware will be supported. Unlike the previous transition from Windows 8 to Windows 10, where most existing hardware was compatible, the move to Windows 11 involves stricter hardware requirements. These include a 64-bit processor, 4 GB of RAM (or more), and 64 GB of storage (or more), among others. This shift implies that organizations might need to allocate a significant portion of their IT budgets to hardware upgrades if their current systems do not meet the necessary criteria. Companies will need to carefully consider this factor while planning their budgets and strategies for the transition.
Is it time to go Cloud?
Investment in cloud technology can be a significant area of IT budgeting. With the increasing shift towards remote work and digital operations, cloud services have become more popular in delivering an efficient and safe work environment. The cloud provides a scalable solution for data storage, enhances collaboration efficiency, and reduces the need for physical infrastructure. This not only reduces costs related to hardware maintenance and upgrades but also offers a higher level of flexibility and security. However, cloud-related expenses can include not only the cost of the service itself but also expenses related to data migration, additional security measures, and potentially, staff training to effectively utilize the new technology. These factors should be carefully considered when allocating the IT budget for cloud services.
Intrada observes a growing trend of companies transitioning to the cloud for various reasons, including meeting cyber insurance requirements, upgrading end-of-life servers, and enhancing collaboration services to boost productivity. Instead of investing time and resources in installing new servers, many organizations consider a shift from on-premises to a hybrid configuration, allowing for phased system migration. This approach minimizes user disruption and facilitates not only software upgrades but also improvements in processes and procedures related to business functions. Moving to the cloud should be approached strategically, focusing not only on technical aspects but also on maximizing business productivity and optimizing system and user efficiency.
Microsoft's announcement of new non-profit pricing strategies in 2023 has been a welcome development for many non-profit organizations. This strategic pricing decision is set to provide significant value to non-profits during future upgrades. With these special pricing plans, non-profits, traditionally operating with restrictive budgets, will have the opportunity to access Microsoft's advanced technological solutions at a more affordable cost. This includes updates to key software, such as Microsoft 365, and upgrades to more recent releases like Windows 11. It also provides access to cybersecurity protection measures, therefore enhancing the overall IT infrastructure without imposing a financial strain. This move by Microsoft can help non-profits to fully embrace digital transformation, making them more efficient, secure, and technologically prepared for future challenges and opportunities.
Don't forget training
Investing in staff training, especially in IT, provides immense value to an organization. With rapid advancements in technology, it's crucial that employees are equipped with the necessary skills and knowledge to efficiently utilize IT tools and resources. A well-trained workforce is likely to be more productive, impart better customer service, and make fewer mistakes, thereby reducing the time and resources spent on troubleshooting or rectifying errors. For example, understanding how to operate new software or systems can greatly enhance an employee's ability to execute tasks accurately and swiftly. Furthermore, IT training significantly reduces the risk of security breaches. When employees are educated on the importance of cybersecurity and how to spot potential threats, they become the organization's first line of defense against malicious cyber-attacks. Therefore, allocating a portion of the IT budget towards staff training is not just an investment in skill development, but also a vital component of the organization's overall risk management strategy.
So what are the key takeaways?
Intrada recommends starting with a Hardware Inventory review to identify all hardware and software that need to be phased out, such as Windows 10 and Server 2016 and older versions. Once you have compiled this list, you can assess the budgetary impact of hardware upgrades. The second item that Intrada suggests reviewing is software licensing and the status of all versions. Are you up to date with all your subscriptions and licenses? The third area of focus is security, ensuring the protection of your users, network, and client data. Do you have MFA (Multi-Factor Authentication) installed on all email and primary software accounts? Do you have off-site encrypted backups that are regularly tested, as well as EDR (Endpoint Detection and Response) installed on all devices? It is also important to have a comprehensive security policy and incident response policy in place, along with phishing and awareness training for your users. Once these foundational elements are in place, you can move on to enhancements, new deployments, and new systems and services that can increase productivity, communication, and opportunities.
Some consider IT budgeting a necessary evil, but if done correctly, it can become the most powerful tool in your competitive toolbox to boost business profitability. Properly managed IT can provide a trackable ROI (Return on Investment) that outweighs most marketing plans in terms of retention success.
At Intrada, we understand that navigating the complexities of IT budgeting can be daunting, especially considering the rapid technological advancements and changing business dynamics. Whether it's the strategic shift towards cloud services, enhancing cybersecurity measures, conducting staff training, or managing hardware and software upgrades, we are here to guide you every step of the way. Our team of experts will help you maximize your current IT budget, ensuring you get the most out of your investment, while also planning strategically for the future. We believe that a well-planned and executed IT strategy can significantly enhance business productivity and profitability. With Intrada as your trusted IT partner, you can rest assured that your technological needs will be comprehensively addressed, allowing you to focus on your core business objectives.
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