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Posts from 2024

Unveiling Hidden IT Costs for SMBs

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Information Technology (IT) has become the backbone for most small to medium-sized businesses (SMBs) in today's digital age. Managing IT in-house is certainly appealing since you get to control everything, but there's a catch — the obscured financial drains it introduces often go unnoticed.

For SMBs trying to stay on budget, it's important to know about these hidden costs upfront to keep the business growing and making money.

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Managing IT In-House vs. Outsourcing

In some cases, outsourcing IT services can be a smarter move financially. Providers typically spread costs across multiple clients, saving you from big upfront expenses. Instead, you pay a monthly fee for maintained equipment and personalised software, making your ongoing expenses more manageable.

This option also allows you to avoid paying salaries and benefits for a full internal IT team. If you choose to manage your IT in-house, here is a peek at some of the expenses you can expect to face.

Infrastructure Costs

There are many internal infrastructure expenses when it comes to in-house IT. For instance, setting up an IT infrastructure, which includes servers, routers, PCs, security tools, and productivity software, can cost tens of thousands upfront.

After the initial setup, there are plenty of ongoing maintenance expenses as well in order to keep the infrastructure up-to-date through future upgrades and the software licences necessary to run them.

Constant Endpoint Monitoring

Monitoring employee endpoints for security threats and managing bandwidth usage are essential tasks in today's digital workplace. However, doing this in-house requires investing in monitoring tools, allocating staff resources for constant monitoring, and addressing any issues that arise promptly, all of which contribute to hidden costs. Plus, the high demand for skilled IT professionals often requires spending more on salaries and benefits to keep talent from moving to competitors or larger enterprises.

Team Training Materials to Educate Your Employees

Investing in ongoing cybersecurity training for your employees is crucial for protecting your business from cyber threats. However, creating and maintaining training materials, conducting training sessions, and keeping up with the latest cybersecurity trends can be expensive and time-consuming when done internally.

Cooling Costs for Server Room

Running a server room generates significant heat, requiring constant cooling to prevent overheating and equipment damage. These cooling expenses, including electricity for air conditioning systems and specialised cooling equipment, can add up quickly and become a significant portion of your IT budget.

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