February 9, 2009 at 9:30 am
Hi All
I am restructuring my current architecture and preparing a summary , When doing this one question raised on my mind, what percent of money is been allocated for IT generally across industry, please share your thoughts 😀
February 9, 2009 at 9:40 am
I don't think there's going to be a valid answer to that question as posed, simply due to the number of variables in it.
For example, percentage of IT budget is going to be very, very different between a cabinet shop, a hospital, and a server hosting company.
Even within any given field, it's going to vary tremendously. A private-practice doctor isn't going to need as much IT as a multi-state hospital chain, but is it going to be a comparable percentage of budget?
And then there are a host of questions about what's the right amount. One company I worked for had a very high IT budget percentage, and had really, really slick systems, but part of the company's downfall was investing too much into systems that had no payoff (no ROI). Another company, same idustry, had a smaller percentage of budget, but was still paying too much for the quality of systems and software they were getting. A third that I know about had too little budget, junk systems, no support, and just struggled along with what they had, but they were getting their money's worth out of what little they did pay for.
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February 9, 2009 at 9:43 am
yes you are right, say for example a medium sized company whose main revenue is based on software. is there any thumb rule stating that this much can be spent?? 😀
February 9, 2009 at 9:49 am
Based on software you build?
Is IT including developers? developer machines, etc? I think you need to spend what you need to spend to get the job done. If this is your main business, then you want to be sure adequate resources are spent on IT infrastructure.
That being said, not sure there's a good number. I would more examine what needs you have, and what you want to accomplish, price it out, and then debate it with business owners what is needed and what makes sense.
February 9, 2009 at 10:02 am
Steve we are currently planning to move towards cloud computing, i am looking out for a rough idea of cost that is been involved on operation, we as a company have a DBA myself, an project manager and 5 developers 🙂
February 9, 2009 at 10:28 am
I'd take a wild guess and say: add up the value of all your machines, servers and printers.
if you assume that a machine should last 5 years before it gets replaced, divide that number by 5, and add a fudge factor for software that you might buy in the future, as well as planned equipment you don't have yet.
If it's a shop where developers have to have the latest and greatest, maybe servers go 5 years, and desktops go 3 years. I can't say we've EVER replaced a router, other than going from 10 mbit to 100mb a long time ago, so infrastructure you might assume will never die.
Lowell
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