Setting Your IT Support Budget

When approached by local Sacramento small business owners looking for IT support, we often hear questions and remarks like these:

“How much would it cost me to have IT support services? We are just calling companies to find the lowest price on tech support. If you are not the cheapest, we need to find an IT company that is.”

While the desire to limit your IT support budget is understandable, this is not the most effective approach. It is like asking how much a car costs without considering all the variables.

We have seen the new-car analogy applied to the information technology world many times. However, we feel that this is not the best analogy. It is best to think of your business as a business that needs tools. Let’s imagine your business is a construction business that needs construction tools. If you dig holes for a living, then you would be interested in a device for digging holes, such as a shovel.

But how much is a shovel?

Of course, you are probably laughing now at the ridiculousness of this example. You would not just call places and start asking, “How much is a shovel?” Most likely, you would do your research and call qualified retailers that have the right equipment. You would have an idea of the type of shovel before calling and asking for a quote.

However, you would be surprised at how many people do not know their needs before calling IT support companies. We often get calls where people say, “I have two servers, ten computers and some phones. How much would you charge for IT support?” To a managed service provider like Capital Network Solutions, that’s like saying, “I have a few holes to dig, and some rocks to move around. How much are a shovel and some tools?”

IT Support Budget Ideas

You would consider the type of job you’re doing before thinking about a budget. You would figure out the size of the holes, as well as the state of the ground. A few holes in a quarry are not the same as a few holes in the garden. You need the right tool for the right job. Meanwhile, you also need to get all the information on the job site, including survey information, permits and beyond.

Therefore, the cost of one project may not be the same as the cost of others. You may only need a mini-excavator for a small backyard job, or you may need a fleet for a quarry project. As you can see, even tools of seemingly the same class, such as excavators or shovels, cannot be compared.

OK, get the picture. Let’s move on to the subject of budgeting IT technology and support for your business.

Seven things to consider when deciding which service model works for your IT support budget:

There are several IT support models, including break/fix, a la carte, and Managed Services. Take these factors into consideration before deciding which IT support model is best for your small to medium-sized business.

  1. Consider the importance of your business technology to your business processes.

If your printer stopped working, or your network service gets interrupted, how would it affect your business? The answer to this question will determine many variables in your IT support package. You may be in a position to wait a few hours for a break/fix support. On the other hand, you may be losing business every second your system stays down. Meanwhile, you may need a specific type of backup and disaster recovery plan or an emergency response service.

Once you determine your business technology priorities, you can make informed decisions about your IT support needs.

  1. Consider the real cost of technology.

Most other small business owners focus on the cost of purchase. There are capital costs such as new hardware and software, items that you purchase to get your business started.

But investment does not stop there. One must also consider the total cost of ownership (TCO) of hardware, software, and the other things you need for your business. These items often include software subscriptions, renewals, internet or phone connections and various service fees. The TCO is usually three to four times more than what you pay for the original hardware. Realizing this fact may help you become more realistic in your IT support budget expectations.

Always remember that technology is a tool that allows your business to perform at its best. It is your responsibility to have the right tools and to keep them properly maintained.

  1. Consider your employees, including their productivity and office morale.

How do your employees cope with outdated technology? Does their daily routine and responsibility require the latest technology? Are they adequately trained to make the most of their available technology? How do they feel when things do not perform as they should? Does it affect team morale? How does it affect their performance? How does it affect productivity? And most importantly, how does that affect your customer? In the end, the answers to all of the above questions will affect your bottom line.

  1. Managed IT Plans vs. Per-User Pricing

While per-user pricing may seem more sensible to you, managed service may be most effective. A user with multiple devices is likely to require far more support than an employee or part-time staff with only one device. More devices may require more maintenance. Typically, devices that stay in the office get standardized for the most optimal support model.

Meanwhile, Bring-Your-Own-Device (BYOD) policies may be more vulnerable to external threats and third-party exposure. These policies require additional vigilance and attention.

Not every type of business will fit a per-user plan, and some would not need a managed IT plan. Therefore, a proper assessment conducted before engagement is critical. It allows us to identify needs and create a scope of support required to keep your business network running efficiently.

  1. Consider your business practices and industry compliance.

Small businesses must often comply with regulatory standards and guidelines. People in regulated industries such as mortgage brokers and law firms are evolving with the speed of light. You may be required to team up with the right IT partner to implement necessary changes. Is your IT provider equipped to research, implement and manage your network environment to comply with the law? Industry compliance is an essential factor in deciding which services are vital, and which IT provider is right for you.

  1. Consider your business goals.

Think of the best possible ways to achieve your goals, and where technology fits in the picture. What devices, software, and processes can help you get there faster, with the most success? Would your business benefit from having an IT consultant? Is your current IT situation meeting your business plans and goals?

  1. Consider your Return on Investment (ROI)

When it comes to IT spending, most small businesses feel that they are already paying out too much. They think of payments for computers, printers and license renewals. If they have an in-house IT department, they also know how much money goes into an employee’s salary and benefits. To those Sacramento small business owners, the cost-benefits of managed IT services are more evident than those without full-time IT staff.

Meanwhile, some small businesses keep an “IT guy” on call to comes and fix stuff as needed. In addition to hardware and software, there is an added cost of technician travel, plus the time and products required to resolve the problem. You may be aware that there are also other factors such as network downtime, computer breakdowns and vendor management. But do you know the numbers behind them? Not every support model is the best fit for the most attractive ROI.

IT Support Budget and MSPs

Most small businesses that joined the Managed Services Provider movement previously believed they spent too much on IT. However, they found that Managed Services saved them up to 50% compared to break/fix and a la carte plans.

In conclusion, there may be other factors that you want to consider when looking for the best price.

When it comes to looking for the best price on IT services, remember these three quick tips:

  • Do not focus just on the cost of purchase.

  • Remember the Total Cost of Ownership (TCO).

  • Consider your Return On Investment (ROI).

If your business is in the Sacramento area, and you are looking for a reliable and competent IT Support company, look no further. At Capital Network Solutions, we monitor your computers and prevent issues before they occur. We take care of all your computer needs, whether on-site or remotely from our locally staffed help desk. CNS technicians make sure your IT operations run smoothly. Under our managed IT services plan, your business gains a team of highly skilled network engineers and computer technicians for less than hiring one full-time employee.

Why Capital Network Solutions?

Capital Network Solutions, Inc. (CNS) is the premier network services and IT consulting company in Northern California. Established in 1989, we have supported hundreds of clients in the technology arena. We design our strategic IT solutions to help you achieve a higher level of security, efficiency, reliability and productivity. Working with CNS enables you to receive enterprise‑class IT service and support at an affordable rate. CNS hires only the most experienced IT professionals to support your business goals.

Call CNS at (916) 366-6566 to learn how we can help grow and secure your Sacramento business. To provide you with the best technology solutions, our Managed IT plans offer:

  • Design and Implementation
  • Project Management
  • Patch Management
  • Data Backup Management
  • Network Security
  • Training and Followup
  • Spam and Antivirus Protection
  • 24×7 Help Desk Support