The Hidden Costs of Business Technology

By Wren Kelly York

Today, companies are increasingly reliant on computers and other technology in daily business. A 2013 technology survey reports that 74% of small businesses utilize smart phones as part of their operations and 67% use some form of mobile computing (National Small Business Association, 2013 Technology Survey). Last year, U.S. companies paid on average of $15 million dollars in fees and remediation costs from incidents involving cybercrime (Hewlett Packard, 2015 Ponemon Institute Cost of Cybercrime Study).

The face of Information Technology is rapidly changing and the costs of utilizing technology in business are becoming increasingly complex. New tools arrive daily for leveraging cloud computing, online marketing, and mobile technology for boosting productivity, increasing sales, and reaching new clients. With one poor technology choice, however, businesses can lose sales, damage customer relationships, and cost millions of dollars in a cybercrime incident. There is daily Identification of new technology vulnerabilities and frequently changing legal requirements for handling confidential and financial information. Small and medium size companies cannot afford negligence or ignorance with their IT infrastructure.

hidden-costs-of-business-technologyMany companies do not have the expertise to fully comprehend the complex requirements of business technology. In fact, often companies mistakenly feel they have a good understanding of their technology costs. Software subscriptions, Information Technology (IT) staffing, and hardware counts are all quantifiable and straightforward. However, a business’s technology infrastructure contains much more than what is easily visible. Security strategies, legal requirements, estimation of data storage needs, management of network infrastructure, and continued IT training are essential elements. Without experienced IT resources, these overlooked areas of critical business technology become invisible costs ready to spring out and wreck a good technology budget, or worse, threaten a company’s success. Sara Erd, Director of Operations at Modern Data Inc. noted that several small to medium size companies she’s worked with didn’t recognize the need for a firewall to safeguard their network from malicious and disruptive attacks from the Internet. This omitted security mistake could cost a company millions of dollars.

How can companies protect their valuable data and mitigate risk from technology vulnerabilities?

Managed IT providers offer solutions for small to medium size businesses to fill in the knowledge gap and gain a more reliable foothold on technology, alleviating much of the risk of under budgeting and hefty legal consequences from noncompliance. Simplified, single source billing, comprehensive packages of services and products, and knowledgeable staff are all parts of a managed IT solution. Service providers are able to take advantage of high quality infrastructure management tools, special pricing for hardware and software, and training on the latest technologies that would be unavailable or too expensive for most small to medium businesses. And managed IT solutions build an understanding of a company’s needs, exposing the hidden costs and providing solutions and expertise so that companies can focus on business.

At Modern Data Inc. their focus is a straight-forward, transparent cost structure where companies don’t pay for technology that isn’t needed. As Sara Erd states, “Modern Data isn’t in the business of selling equipment. We don’t over sell to our clients.” In a 2015 ROI report (Alinean Inc.) average small companies spends 6.9% of revenue on IT. Midsized companies spend 4.1%. Modern Data maximizes this investment through a thorough review of company needs, existing assets, and legacy systems. One way they assist companies to avoid multimillion dollar security breaches is by maintaining up-to-date technology. Companies who want to determine if their data and systems are protected can contact Modern Data Inc. to perform a network/security assessment. Prioritizing a strong IT infrastructure is a good way to make sure technology costs don’t catch companies by surprise. Taking some good advice from grandma, “spend wisely”.

Contact Modern Data at www.ModernData.com or call us at 1.855.MODERNDATA to discuss your IT needs

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