Budget

Improve Your IT budget Forecasting

December 13, 2022 by Paul Schwegler

As the year comes to a close, you have to write the IT budget and spending benchmarks. You must understand the current IT infrastructure and forecast technology needs. This article shares three key areas to improve forecasting and maybe save budget too.

#1 Unexpected IT expenses

First, it helps to identify where you are blowing your IT budget. Often IT budget inaccuracies can be traced back to unexpected tech expenses. Repairs, replacements, and unanticipated upgrades can all throw your budget out of whack. Unfortunately, emergency repairs and last-minute technology improvements are the most costly.

But without a crystal ball, you can’t predict what’s going to happen, right? Still, you can make a plan that allows you to avoid wasting money on the break-fix model. Partnering with a managed service provider (MSP), you will typically pay a set monthly fee. Then, if something does go wrong, you have IT experts at the ready to address the issue.

Plus, a good MSP will work to determine the expected life cycles of your tech assets. That way, you can anticipate hardware or software upgrades and budget accordingly. Further, your MSP should work proactively to prevent unexpected downtime. They can help protect you from cyberattacks and keep software and hardware updated and patched.

#2 Bloated IT infrastructure

Overlapping and wasted resources are another big IT budget drain. You could be paying for many devices that do the same thing, or you may be continuing to license software that your team no longer uses. Or it may be software that everyone uses, and you could be getting a much better deal. You might also be paying for tech you haven’t upgraded, so you aren’t getting the full return on your investment.

An MSP can help identify these kinds of issues. Bringing in an IT expert provides an objective view of your infrastructure. They can suggest performance improvements and streamline processes. They may also suggest subscriptions or other packages that can help you save funds.

#3 IT and business misalignment

The plan is always to build a budget for an IT strategy that helps achieve business goals. Yep, doing so depends on your tech know-how and good communication.

Further, tech-business alignment has grown more difficult as infrastructure has changed, plus, the workforce is now more distributed. The business could have on-premises technology as well as cloud-based software. Employees could be bringing in their own devices and/or working remotely. As a result, business tech needs to be doing more. Plus, it needs to keep up with rapid evolutions and cybersecurity threats.

Yet investing in IT-business alignment improves budgets, and benefits workers and customers. Potential advantages include:

reduced digital friction;
improved user experience;
greater customer engagement;
cutting costs;
improving productivity;
gaining visibility of business processes;
faster delivery times and speed to market;
growing your competitive advantage;
driving innovation.

Work with an MSP to bridge business acumen and IT expertise. Then, you can better calculate the financial impacts (costs and ROIs) of your IT plan.

Need help understanding IT budget pitfalls and spending benchmarks? We can help plan for tech spending supporting your business objectives going forward. Contact us at (515)422-1995.

Small Business Can’t Sacrifice Cybersecurity

May 17, 2022 by Paul Schwegler

For small businesses, it can be tempting to postpone cybersecurity efforts. There are many common excuses: “There’s so much to do,” “There’s not enough budget,” “Our business is too small to target,” etc. But right now, cybersecurity is a must-have for every business.

Think of it like business insurance. You don’t intend to get sued or have accidents, but you have insurance to cover if the worst happens. Similarly, having cybersecurity in place:

saves you time, money, and stress;
protects your business IT against damages;
provides you and your employees with peace of mind.

But small businesses are not only at risk of cyberattack. According to a study released in March 2022 by cloud security company Barracuda Networks, “on average, an employee of a small business with less than 100 employees will experience 350% more social engineering attacks than an employee of a larger enterprise.” That makes small businesses three times more likely to be targeted.

In fact, your business may already have been attacked. The Barracuda study found that one in five organizations had at least one account compromised in 2021. And hackers need only one account to launch from. An attack can spread without you knowing if you don’t have the right detection and protection tools in place.

Advice for small business leaders

Digital attacks are on the rise, and you’re going to need help. A report from Blackberry in February suggested that “one million daily security alerts are seen in 25% of security operations centers.”

But you don’t have a security operations center, right, let alone one that can process a million alerts daily. Investing in cybersecurity gives you access to that type of security reporting, plus much more.

Hackers target small businesses because they expect them to have fewer IT resources. That can mean more weak points for bad actors to exploit.

At least you are keeping your software current and patching vulnerabilities with any manufacturer updates, right? And your business probably also uses antivirus and emailing filtering. Yet, traditional email filters are no longer enough: you need to invest in additional security resources.

Take the target off your back

So, we’re back at the beginning again. Investing in cybersecurity is now on your wish list, but you can’t see how you can afford it right now. But you can’t afford not to really. According to the Australian Cyber Security Centre, “Australia spent approximately $5.6 billion on cybersecurity in 2020, and self-reported losses from cybercrime totalled more than $33 billion.”

Plus, you don’t need to do everything from scratch and buy all the necessary software and hardware yourself. Instead, you can work with a vendor to take advantage of economies of scale. Invest in a cybersecurity partner who will do a full risk analysis to find the main vulnerabilities in your business IT environment.

Partner with someone who works to secure many small businesses like yours. They’ll be the ones investing in supplemental technology with machine-learning security to protect against all types of email. They’ll know how to put the right protection tools in place, and they’ll also have the skills to detect and respond to threats post-delivery.

The damage caused by one compromised account can be devastating for a small business. Don’t risk the worst happening: protect your cybersecurity with the help of a managed service provider. We can identify any weak points in your cybersecurity and help put safeguards in place to defend your business. Contact us today at (515)422-1995!

Signs You Aren’t Budgeting Enough for IT

July 13, 2021 by Paul Schwegler

Generally, we like to make the argument that nothing about your small business is too small. We do say it a lot in relation to cybersecurity - no size of business is immune. Yet, there is the chance your IT budget is too small. Consider these indicators that you might need to invest more in your IT.

Every business wants to be cost-conscious. Saving money in one area can make funds available to expand, develop new products, or pay people more. That all makes sense.

Yet technology is the lifeblood of business success today. When you have the best tools available, you gain productivity, efficiency, and transparency. Plus, your people are likely to be happier, which helps retention, too. At the same time, with cyberthreats on the rise globally, IT isn't the best area in which to flex your thrift muscles.

How can you know you need to pay more now to avoid spending an exorbitant amount later? Look for these warning signs.

Employees Are Losing Time to Tech

The right hardware and software makes employees' jobs easier. Robotic process automation can improve workflow to avoid effort spent on mundane tasks. But people struggling with slow, outdated technology are wasting valuable time.

If your people have to find workarounds to get that project done on deadline, that's only a short-term fix. It is frustrating for them, which impacts morale and retention. Plus, the band-aid approach to getting the job done can backfire in the long run.

There are Important Things You Can't Do

You may be putting off upgrades to save on your IT budget. Yet in your effort to spend less on tech, you're undermining your business interests. You put off an operating system upgrade because your current system is working fine, except that choice could make you more vulnerable to cyberattack. You recognize the value of integrated customer relationship management (CRM) software but don't want to splurge on that valuable tool. Still, you don't want to save money on IT spend at the expense of business needs right now.

Customer Experience Is Suffering

You may not immediately connect IT budget and customer satisfaction, yet consumers today want convenience and personal attention. These can be difficult for the overworked human employee to do. Providing improved data and analytics makes it easier to offer individual attention. Plus, chatbots and mobile apps can transform the customer experience, because they save time and effort.

You're Struggling to Meet Industry Standards

Businesses face different industry standards to manage and protect personal and proprietary data. There can be requirements for backup practices, infrastructure testing, monitoring threats, and more. This can make the job of IT more complicated, but not spending to safeguard data or intellectual property risks a financial hit.

Improving operational efficiencies is a priority, of course, yet security spend needs to part of the IT budget, too. Address risk exposure with recurring risk assessments and a strategic security framework.

Better Budgeting for IT

Many businesses looking to bounce back from the pandemic are struggling with tight budgets. Still, technology can improve remote work, increase productivity, and enhance customer satisfaction.

Not sure where to direct that IT spending? Our IT experts can get to know your business and its objectives. We'll identify cost savings and suggest transformations for the best return on investment.

Call us today at (515)422-1995.