How Much Should You Spend on Technology?

Technology is crucial for all businesses, regardless of size or industry - but how much should you spend on keeping your technology well-managed?

Technology Is Crucial For Modern Businesses – How Much Should You Spend On It?

Technology is evolving at a rapid rate. Nowadays, businesses can’t operate without leveraging technology to some degree. Not only does technology expand your reach in terms of external and internal communication, but technology also enables you to manage a range of business processes for greater efficiency, including but not limited to:

  • Financial record-keeping
  • Inventory management
  • Customer acquisition
  • Product development
  • Lifecycle management
  • And much, much more

Ultimately, technology makes a world of difference in the way we conduct our businesses. So how much should you spend on keeping your technology well-managed? Because it’s so vital to the day-to-day operations of your company, it’s important not to overlook the value of technology. But you don’t want to overspend either.

How Much Should You Spend on Technology?

How Much Should You Spend On Managing Your Technology?

Let’s first take a look at the various options available to you when it comes to managing your technology:

  1. Hiring an internal person or department
  2. Paying an hourly rate to fix problems as they arise
  3. Subscribing to a managed IT services plan for a flat-rate monthly fee

The first option is quite common, but it’s often too expensive for businesses to maintain in the long-run. How so? Well, you have to account for the expenses associated with retaining that internal person and/or department, such as salaries, benefits, workstations, and of course, ongoing training.

The second option is less common but still used in some cases nowadays. Essentially, you pay an hourly rate for someone to come in and troubleshoot issues/fix problems as they arise. It’s simply not an efficient model for businesses that depend on the availability and performance of their systems.

The third option is becoming more common than ever before. You pay a flat-rate monthly fee for proactive support wherein an MSP provides all of the services you need to keep your infrastructure as healthy and reliable as possible. They take on the responsibility of monitoring, maintaining, and supporting your environment.

What’s A Fair Price To Pay For Managed IT Services?

In our opinion, a fair rate is anywhere between $100 – $200 per device or user, per month. This should cover everything you need, such as:

  • Remote and onsite support
  • Preventative monitoring and maintenance
  • Data backup and disaster recovery
  • Strategic technology planning
  • And more

Most MSPs will charge per device or per user – meaning you will pay for each device within the company or each user that leverages technology within the company.

Ready to get started with a managed IT services plan? TLC Tech is the top IT services company in Sacramento.

Click here to get in touch with us or call us at (916) 441-3838.

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Published on August 14, 2020