Trying to figure out how much you’ll spend on technology each month for your Dallas-Fort Worth business can be challenging if you don’t have fixed costs through a managed IT services plan.
Things like a hard drive crash or ransomware attack can cause unexpected costs that you never planned on.
If you don’t have your IT costs under control, it’s hard to take a look at things like total cost of ownership (TCO) for a computer or server or understand where to make improvements to streamline processes.
For example, you may look at your cloud subscription costs at the end of the year wondering how they got so high from what you protected twelve months earlier.
In 2019, SaaS spending waste nearly doubled from the year prior.
When looking at all your IT costs, you have to factor in costs of productivity for using outdated equipment and risk factors from having unmanaged IT, in addition to your hard costs.
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Understanding Your Typical Technology Costs
Let’s take a look at some of the standard costs that businesses regularly pay for their technology.
Hardware (Computers, Servers, Printers, etc.)
One of the easiest costs to track are hardware purchases. This is anytime you buy a computer, printer, server, router, or any other piece of technology.
Costs can vary, according to the equipment you use, but a typical business computer can cost in the neighborhood of $750 to $1,500.
Companies will often hold onto their hardware beyond the point of productive use, which can actually cost them more. It often costs more to operate an older computer than to buy a new one.
Factors that go into the operational cost of an older computer are:
- Productivity losses
- Higher security risk
- Higher data loss risk
- More service calls
Holding onto a computer that’s older than 4+ years can cost a business $2,736 per year in ongoing costs.
Cybersecurity
An important area of IT spending is cybersecurity. This includes both hardware and software designed to keep your network secure.
IT security spending can include:
- Firewall
- Managed antivirus/anti-malware
- Ongoing update administration
- Anti-phishing and spam filter
- Web protection
- Remote worker security (VPN, etc.)
- Password security
- Device/endpoint security
- Data backup/recovery
Risks involved with not keeping up with IT security needs include high costs from a ransomware attack or data breach. The average cost of a data breach is $3.86 million.
Software/SaaS Applications
Another big component of your business technology includes the software that your office uses to do your work. This can include accounting software, platforms like Microsoft 365, video conferencing tools, and much more.
Companies that don’t optimize their use of software and cloud applications can end up paying for tools they don’t fully utilize and that they don’t need.
It’s important to work with an IT consultant to review and streamline your use of software applications so you’re using exactly what you need, and data can be freely shared between apps.
In 2018, average cloud spending for smaller companies was $889,000.
Unexpected Support & Repair Costs
One of the biggest buckets for IT spending in a company can be costs that come from out of the blue. These are unexpected tech support and repair costs.
These types of cost can happen for multiple reasons, such as users needing technical support with software or hardware, unexpected hardware problems or crashes, emergency ransomware or virus removal, etc.
If computers aren’t being maintained properly and a company does not have managed IT support in place, it leaves them wide open to these high unexpected costs.
One estimate is that a single unmanaged computer can cost a company $5,000 per year in various costs including:
- Downtime
- Repairs
- Emergency support
- Lost productivity
Downtime and the resulting loss of productivity and potential sales is a hidden cost that not many companies keep track of, but it’s just as real as other hard costs.
Control Your IT Costs with Flat Rate Managed Services
You can get a handle on IT costs and keep them from getting out of hand by using managed IT services from Cloudavize. Our flat rate support ensures that you won’t have any unwelcome surprises when it comes to your technology costs.
For one flat monthly rate, you can receive some or all of the following (our plans are customizable!):
- Strategic IT consulting that helps you streamline and optimize
- Proactive maintenance to improve lifespan and equipment efficiency
- Unlimited user support for employees
- Backup and disaster recovery
- Cloud services, such as email, storage, and collaboration tools
- Managed cybersecurity services to keep your network secure
- Process consulting to align workflows with your needs
Some of the other advantages of managed IT support is that you reduce downtime, improve user productivity, and increase the usable lifespan of your hardware because its regularly monitored and maintained.
Reduce Your Company’s IT Costs by Working with Cloudavize
Have your technology costs gotten out of control? We can help!
Contact Cloudavize today for a free consultation to get started.
