IT Budgeting Considerations for 2025: What You Need to Plan For
As we move into Q4, many businesses are starting to evaluate their IT budgets for 2025. With evolving technology needs, changing security landscapes, and potential price increases, it’s crucial to plan ahead. Here are several key considerations to keep in mind as you build your IT budget for the coming year:
1. Adjusting for Price Increases
IT vendors and software platforms often adjust their pricing annually, and it’s smart to anticipate a 10% increase in your overall spend. This helps ensure you're prepared for any price hikes during renewals and don't encounter unexpected surprises.
2. Refreshing Aging Hardware
If your organization has network switches, computers, or servers that are approaching the 5-year mark, it may be time to plan for a refresh. Older hardware can lead to decreased performance and higher maintenance costs, and as devices age, they become more vulnerable to failures. Proactively replacing these assets can help avoid costly downtime.
3. Preparing for Windows 11
With Windows 10 support ending in 2025, upgrading to Windows 11 should be on your radar. While we don’t charge our clients for these upgrades, some IT providers do. Keep in mind that any computers over five years old likely won't meet the hardware requirements for Windows 11 due to outdated processors, so a replacement may be necessary.
4. Planning for Growth
Do you expect your business to expand in 2025? Whether it’s adding new employees, moving to a larger office, or opening additional locations, these changes can have a significant impact on your IT budget. Factor in the costs for new workstations, networking infrastructure, and additional licensing well in advance to avoid any tension as you scale.
5. Cyber Insurance
If you haven’t already added cyber insurance to your overall business coverage, now is the time. 33% of businesses made a cyber insurance claim last year. Reach out to your business insurance provider to get an estimate and ensure it’s part of your 2025 budget.
6. Adding Security Layers
The threat landscape continues to evolve, with rising incidents of phishing scams and session token hijacking. A standard firewall and antivirus solution are no longer enough. To stay protected, consider adding additional layers of security, such as cloud security monitoring and conditional access policies. Work with your IT provider to build a project plan for adding these features and ensure you're budgeting accordingly.
7. Managed Detection and Response (MDR)
If your business is still using traditional antivirus solutions, you may be leaving your systems vulnerable to modern malware and ransomware threats. MDR provides 24/7 monitoring of endpoints, threat isolation and offers significantly better protection than standalone antivirus software. Depending on your provider, the cost for MDR ranges from $5-$15 per endpoint, so be sure to budget for this essential service.
Additional Considerations for Your 2025 IT Budget
8. Cloud Infrastructure & SaaS Spending
As more businesses move operations to the cloud, it's important to assess your current cloud infrastructure costs. Whether you’re using Amazon Web Services, Microsoft Azure, or a combination of SaaS platforms, look at your current usage and evaluate where you might need to scale up or streamline costs. Also, check with your IT provider on any cost-saving measures or optimizations that can be applied to your cloud environment.
9. Compliance and Regulatory Requirements
If your industry is subject to regulations like GDPR, HIPAA, or SOC 2, ensure your IT budget accounts for any consulting projects or compliance audits that may be necessary. Failure to meet regulatory standards can result in heavy fines and damage to your business’s reputation, so consider allocating resources toward compliance tools and services.
10. Employee Training
Even the best technology investments won’t deliver value if your team doesn’t know how to use them properly. Incorporate a training budget that allows your staff to stay updated on new software, security best practices, and IT systems. This is especially important with evolving cybersecurity threats; employee awareness training can help prevent costly breaches.
Planning for your 2025 IT budget requires careful consideration of both current needs and future growth. From addressing hardware and software upgrades to enhancing security measures and planning for regulatory compliance, a well-thought-out budget ensures your business stays ahead of the curve. If you need any assistance in planning your IT budget or implementing new solutions, don’t hesitate to reach out to our team — we’re here to help you succeed.
