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The Changing Landscape of IT Costs in 2023

Taylor Maguire
November 3, 2023
Discover the changing landscape of Information Technology expenses, from computers and software to internet access and staffing.
The Changing Landscape of IT Costs in 2023

Information Technology Costs Are On The Rise

In 2023, the Information Technology (IT) industry has experienced a noticeable increase in costs, although not at the same rate as other business services. This surge can be attributed to various factors, including the increasing demand for IT technicians and the emergence of innovative technologies.

Additionally, the cost of cybersecurity has caught many small businesses off guard, particularly those who had previously relied solely on antivirus software for protection.

In this blog, we will explore the evolving landscape of IT costs, delving into the reasons behind the upsurge and shedding light on the unforeseen financial implications of cybersecurity for small businesses.

Factors Affecting IT Support Costs

1. Computers:

When evaluating IT support costs, a crucial factor to consider is the lifespan of computers, including desktops, laptops, and servers. Analyzing the duration these devices remain efficient before necessitating upgrades or replacements significantly impacts overall IT support expenses.

Lifespan of desktop computers, laptops, and servers

The durability and quality of components, as well as the intended purpose, play a significant role in determining the lifespan of computers. Here is a general overview:

  • Laptops: Laptops typically have a shorter lifespan, ranging from around 4 to 5 years. As they are portable and subject to more wear and tear, their longevity may be slightly shorter compared to other devices.
  • Desktops: Desktop computers often last for 5 to 6 years before parts become obsolete and advancements in technology surpass their capabilities.
  • Servers: Servers, known for their higher quality components and robustness, can endure for 5 to 7 years before needing replacement or major upgrades.
Estimated costs for desktop computers, laptops, and servers

Estimating the costs associated with different computer types is crucial for effective budgeting in IT support. It is important to note that these cost estimates may vary depending on factors such as specifications, brand, and market trends. Here is a general price range for each device category:

  • Laptops: The cost of laptops typically ranges from $800 to $1700, depending on factors such as performance, features, and brand.
  • Desktops: Desktops: The estimated cost of desktop computers ranges from $850 to $2500, depending on factors such as specifications, form factor, and brand.
  • Servers: Servers are usually more expensive due to their specialized nature and higher quality components. The estimated cost of servers can range from $2500 to $7500 or more, depending on the level of performance, storage capacity, and brand.

Understanding the lifespan and estimated costs of computers is essential for businesses to make informed decisions about their IT infrastructure investments. By factoring in these variables, organizations can better plan their IT support budgets and ensure efficient technology management.

2. Software:

Software is crucial for efficient business operations. It serves as the engine that drives productivity and enables us to achieve our goals. Whether accessed online or installed on computers, specific software plays a vital role in completing tasks effectively.

However, estimating software costs is complex due to the wide range of options available. Each company's needs vary, and factors such as vendors, scale of implementation, and customization requirements will impact costs. Consider the following:

Importance of specific software

Tailored software solutions are essential for different industries and operational needs. They enhance productivity and streamline processes, such as project management, accounting systems, and customer relationship management (CRM).

Cost variability based on online or installed applications
  • Online Software: Cloud-based solutions involve subscription-based pricing models, with costs influenced by factors like user count, features, and support levels.
  • Installed Applications: Software installed locally may require one-time or perpetual license fees, along with additional support or maintenance costs.

To make informed decisions, assess your requirements, research options, and consider long-term benefits and costs. Remember that specific software costs are unique to each business.

In summary, software is vital for business operations, and costs vary based on online or installed applications. Evaluate your needs and seek suitable solutions within your budgetary considerations.

3. Internet:

Access to reliable high-speed internet is critical for the success of businesses, particularly when utilizing online software systems. Without a dependable internet connection, businesses will struggle to meet the demands of their clients and vendors. Let's explore the three common types of internet access and their impact on IT support costs.

  • Description: Hardline connections provide a dedicated connection to your business.
  • Cost: The price range for hardline connections is typically between $60 and $500 per month, depending on the desired speed and capacity.
  • Reliability and security: Hardline connections are known for their high reliability and secure nature, ensuring consistent speeds and offering a dedicated and encrypted connection.
Public WiFi:
  • Description: Public WiFi refers to borrowing internet access from hotspots or public buildings.
  • Cost: Public WiFi access is often available for free or at a low cost, typically ranging from $0 to $30 per day.
  • Reliability and security concerns: While public WiFi can be somewhat reliable, it may suffer from service interruptions and slower speeds. Additionally, it poses significant security risks, making it less secure for transmitting sensitive data.
Cell HotSpot:
  • Description: Cell HotSpot utilizes your cell phone data plan to provide internet access.
  • Cost: Cell HotSpot connections are typically part of your cell phone data plan, which can range from $60 and upwards depending on the data limit and provider.
  • Reliability and security considerations: Cell HotSpot connections can vary in reliability, depending on signal strength and network coverage. While they offer some level of security, they may not be as secure as hardline connections. Employing additional security measures like VPNs is recommended to enhance data transmission security.

It's important to note that there is no one-size-fits-all solution when it comes to internet access. Often, businesses require a combination of these methods to ensure reliable connectivity.

4. IT Professional:

Having the right IT support personnel is crucial for maintaining efficient business operations. Let's explore two key aspects related to IT personnel and their impact on IT support costs:

Assessing the needs for basic tech skills or specialized IT professionals:

Before determining the level of IT support required, it's essential to assess the specific needs of the business. In some cases, basic tech skills within the organization may suffice, while in others, specialized IT professionals may be necessary.

  • Basic tech skills: These skills can include general troubleshooting, software installation, and basic network management. They are suitable for smaller businesses with straightforward IT requirements.
  • Specialized IT professionals: These individuals possess in-depth knowledge and expertise in specific areas such as cybersecurity, network infrastructure, cloud computing, or software development. They are essential for larger organizations or those with complex IT systems that require advanced support.
Benefits of hiring or outsourcing IT support expertise:
  • Hiring an in-house IT professional: This option provides businesses with a dedicated IT staff member who can handle day-to-day IT operations, provide immediate support, and maintain the overall IT infrastructure. It allows for more personalized attention and quicker response times. However, it may require a higher financial investment due to salaries, benefits, and ongoing training.
  • Outsourcing IT support: Outsourcing IT support to a specialized company or service provider offers several advantages. It allows businesses to tap into a broader range of expertise, access 24/7 support, and potentially reduces costs compared to maintaining an in-house team. Additionally, outsourcing ensures access to the latest technologies and industry best practices.

By carefully evaluating the specific IT needs of the business, organizations can make informed decisions regarding the level of IT support required. This assessment can help determine whether basic tech skills within the organization are sufficient or if specialized IT professionals need to be hired or outsourced. Each approach has its own benefits and cost considerations, and the chosen option should align with the business's objectives and available resources.

Estimating IT Support Cost

Budgeting Recommendations:

  • It is advisable to allocate approximately $150 per month per computer for IT support expenses.
  • This budget should cover various aspects, including hardware, software, internet, and IT personnel.

Inclusion Of Essential Components:

  • IT support costs should encompass the expenses associated with acquiring and maintaining hardware, such as computers, laptops, and servers.
  • Additionally, the budget should account for software licenses and subscriptions required for business operations.
  • Reliable and high-speed internet access is vital and should be considered in the overall IT support costs.
  • Lastly, allocating funds for IT personnel, whether in-house or outsourced, ensures dedicated technical support.

Consultation With Empyrion Technologies

For a more accurate estimation of IT support costs tailored to specific business needs, it is recommended to schedule a consultation with us.

Empyrion Technologies' team has years of experience in professionally managed IT systems and can provide valuable insights and expertise in assessing and budgeting IT support expenses.

Book A Discovery Call With Us Today! Find Out How We Can Help.

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