IT budgets: Balancing cost and cybersecurity

As small businesses juggle fluctuating IT budgets and rising cybersecurity risks, finding the right balance becomes paramount. Discover the consequences of neglecting technology updates and how prioritising IT investments can lead to a more secure and productive work environment

CREDIT: This is an edited version of an article that originally appeared on SME Today

Fluctuating IT budgets have proven challenging for small businesses to navigate. The surge in enterprise technology investment during the pandemic’s onset in 2020 caught many off guard. While spending decreased once the initial crisis subsided, last year witnessed a 0.2% contraction in IT spending, according to Gartner, totalling £4.38 trillion. Amid ongoing global inflation concerns, rising costs for hardware, software, and labour have prompted businesses to seek cost-cutting measures. Interestingly, while IT decision-makers consider increasing spending on ERP, CRM, and other SaaS products, they are tightening the purse strings when it comes to devices. Gartner forecasts an 8.6% decline in device spending this year, prolonging the lifecycle of existing equipment.

The cybersecurity conundrum

Prolonging the use of outdated IT equipment can expose small businesses to significant risks, especially in the realm of cybersecurity. The typical lifespan of a business computer or laptop ranges from three to five years. While it may be tempting to maximise the value of existing assets, this approach can lead to costly consequences down the road.

In April 2023, the UK government’s Department for Science, Innovation, and Technology released its ‘cybersecurity breaches survey,’ analysing data from UK businesses over the previous year. The survey revealed that “32% of businesses and 24% of charities recall breaches or attacks in the last 12 months.” Medium and large businesses reported even higher percentages, with 59% and 69%, respectively. These figures underscore the importance of proactive cybersecurity measures.

Outdated IT equipment is more vulnerable to viruses and malware attacks, as they often lack support for the latest security updates and operating systems. The UK’s National Cyber Security Centre warns against using ‘obsolete’ products, highlighting that such equipment will not receive security updates, making them attractive targets for attackers. This increases the likelihood of successful cyberattacks, even by less skilled perpetrators.

The price of reduced productivity

Cutting corners on technology spending not only heightens the risk of cyberattacks but can also result in significant losses in employee productivity. Slow and outdated hardware can lead to frustrating delays, negatively impacting day-to-day work routines.

According to research by Curry’s, office workers waste an average of 24 days annually due to delays caused by sluggish or outdated hardware. This not only affects a company’s bottom line but also diminishes employee satisfaction. When staff perceives that investments in modern equipment, enabling them to work more efficiently, are not prioritised, it can lead to decreased job satisfaction and potentially higher turnover rates.

Small businesses must prioritise the quality and efficiency of their devices. The latest, fastest technology can enhance innovation and security features, preventing unnecessary disruptions that drain resources and demoralise employees.

While cost-cutting measures may seem appealing in the short term, neglecting IT equipment updates can have far-reaching consequences for small businesses, including cybersecurity risks and reduced employee productivity. Prioritising technology investments ensures a more secure and productive work environment, ultimately benefiting the business’s bottom line and staff morale.