Are you planning to bump up your IT budget this year, or thinking about doing so? You’re not alone if so: Across industries, 3 out of 4 businesses are planning to spend more on IT this year than last.
Here’s the thing: even though budgets do have to increase from time to time, there’s a difference between spending more and spending smart.
Let’s get into the reasons why IT budgets are growing, plus our top tips for spending smart, not just spending more.
Why IT Budgets Are Expanding
There are plenty of factors feeding into this: inflation is still with us, and supply chain concerns tied to tariffs and other global developments may affect the prices of hardware and equipment.
But the biggest factor driving budget increases is the need for better computing capability.
New advances in hardware are making a real difference in what your workforce can do with their laptops or desktops. Artificial intelligence (AI) is certainly a part of this: you can’t hardly turn on the TV or drive down the interstate without seeing an ad (or 12) extolling the latest AI capability, or how brands are now infusing AI into the unlikeliest of places.
And while the world probably doesn’t really need AI pillows or AI toothbrushes, the fact is, AI is showing up in the software tools we use every day. For some of these, old PCs aren’t quite cutting it.
So it may be true that you business needs to upgrade some hardware, maybe even increasing your budget allocation for IT to do so. But it’s still a good idea to evaluate that IT spend, making sure your dollars are well spent.
Here are a few strategic tips you can use for smarter IT spending, helping you get more out of your IT budget — no matter its size.
Tip #1: Understand What’s AI Hype and What’s Real
First up: not everything with “AI” slapped on it is really going to be useful for your business (and some of it doesn’t even use AI). So before you go invest in a fleet of AI PCs, make sure you know:
- What specifically the manufacturer means by calling it an “AI PC”
- Which AI features or tools the new hardware will enable
- Which of those tools or features will be useful to your business
We know it’s not always possible to know all of this with certainty going in, but we still recommend knowing why you’re investing in new hardware before you sign the contract.
Tip #2: Know the Difference Between On-Device and Cloud Processing
Sticking with the topic of AI, there’s something else you should know: a lot of the consumer-facing AI tools (like ChatGPT and other generative AIs) don’t depend on your hardware. At all.
That’s because when you ask ChatGPT to do something for you, you’re sending that request to OpenAI’s server. All the number-crunching happens there, and OpenAI sends the answer back to you via ChatGPT. If your computer can load a basic website, then it can use ChatGPT in browser.
Other tools do depend on your own hardware to function. Apple’s AI features mostly do this, and some other tools also run on-device. Knowing the difference between the two can help you avoid unnecessary (or unnecessarily high-end) upgrades.
Tip #3: Invest in Software Systems & Training, Not Just Software
It usually isn’t all that difficult to purchase new software. The trouble is in getting that software configured, tying it into the other tools you’re already using, and reimagining your workflows in light of those new software capabilities. After that, team members need to be taught how to use the new tools — and the new workflows.
So consider using some of your IT spend for planning, workflow, and training purposes. Make sure you’re truly getting value out of the software and systems you have (and any that you may add this year).
Need a hand with any of this? We’re here to help. Reach out anytime!