CFOs in the business world have undoubtedly noticed that technology budgets are steadily on the rise. This can create a number of problems for executives who need to determine how to remain competitive from a technology standpoint, while also retaining enough funds to grow the business. It can be helpful for business leaders who are looking to save money on technology to understand why the cost of IT is rising. In doing so, they may be able to circumvent these costs and save money while maintaining state-of-the-art technology.
1) Newer Products are More Expensive
As more advanced products become available on the market, newer technologies are simply more expensive. There is a tremendous amount of pressure being applied to the IT industry by the public to come up with newer and better products - just take a look at drones flying overhead, virtual reality systems, and impressive advancements in automation technology. All of these products require newer parts coupled with intense research and development. There is a sizable investment that goes into the development of a new products that gets passed down to the consumer.
2) Many Businesses Rely on Legacy Technology
Some business leaders may have heard the term “legacy technology," which is used to describe outdated technology that still functions in many businesses. Some companies are reluctant to modernize because of the upfront cost of new equipment; however, the cost of maintaining old machinery is only going to get more expensive. IT professionals that are in the field today may not be familiar with older equipment, which means that finding someone to maintain legacy technology is going to become more and more difficult as time goes on.
3) IT Departments are a Must
Businesses are realizing that they need to hire IT departments to keep their technology maintained and efficient. While some companies may be reluctant to hire a full-time IT staff, they should understand that it's actually worth the investment to keep equipment properly maintained and data protected, because this will extend the longevity of their equipment and avoid any potential information leaks. IT departments can also aid in the development of a long-term IT strategy to ensure businesses are best equipped for technology success both now and in the future.
4) Anti-Malware Software is an Expensive - but Important - Investment
While the pace of technological advance has been impressive, the malware and viruses that share the virtual space have also become more creative. Examples include ransomware and jackware, which can paralyze businesses and expose valuable data and financial information to the public. It's important for businesses to keep their cyber defenses on the cutting edge; an experienced IT team can help ensure that every business has proper defensive software, at a price that makes sense for the company.
5) There is More Technology than Ever Before
Finally, there is more technology on the market today than ever before. Businesses used to only invest in computers. Now, there is cloud computing, automation technology, and even mobile devices that companies have to include in their technology budget. When these expenses are accompanied by an experienced IT team, the costs can seem astronomical. However, businesses need to remember that by investing in their technological devices, they can save money in other areas of the business. Technology has improved the efficiency of companies everywhere, and increased efficiency means better business operations.