ServerMonkey Blog

How to Forecast What You Need In Your IT Budget

Written by Katherine Creeden | Jul 15, 2015 1:00:00 PM

Smart service providers plan their networks with the assistance of forecast calculations. By using calculations and planning ahead, operators can make key investment decisions ahead of the game. Forecasting is the key to making sure a company will operate at a profit while investing current and future capital wisely.

Forecasting your IT budget can be broken down into categories such as planning and budgeting, evaluation, and verification.

Planning and Budgeting

By planning and budgeting, operators can decide what equipment needs to be purchased and when. It’s important to look at your overall yearly budget, as well as your monthly budget. Items needed to be taken into account include hardware, software, licensing, maintenance, telecommunications, etc.

Evaluation

Once the forecast has been set up and decisions have been made, management can decide if the decisions were in fact advantageous for the company or detrimental. If decisions turn out to be detrimental, look for ways to tweak the budget. Try buying refurbished hardware instead of new. This is an easy way to stretch every dollar of your budget. You could also think about adopting the BYOD (bring your own device) policy.

Verification

New forecasts will be made, so it’s important to compare the old to the new to confirm the predicted outcomes. Companies need to verify in order to measure their performance and improve flaws for the next forecast. By verifying, companies can alter decisions in order to improve the next IT budget. Consider any growth projections such as revenue and staffing, as both indirectly affect the budget.

Before a company can forecast, it’s important to prepare data. Think about the amount of employees you have as well as existing inventory. Organize your IT budget categories by what’s most important and what can be put aside for a later date.

Check out our IT budget template and let us know in the comments below if you have any more questions!