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Engaging the services of a managed IT services provider in Los Angeles can help in streamlining your organizations’ IT budgeting. Businesses, both small and established, struggle with budgeting for IT. This occurs because the IT team doesn’t have a clear understanding of the budgeting process, and the finance department barely understand IT needs. As a result, IT executives, who are uncomfortable with numbers, get tempted to tweak the previous year’s budget or make arbitrary cuts. The guide below outlines some essential components of the IT budget.

Hardware Components

Budgeting for hardware should include all equipment costs, cost of routine hardware implementation, and any additional IT hardware to be purchased. Industry standards recommend that organizations should replace their hardware, laptops, and computers every three years. Similarly, system servers should be replaced every five years for optimal functionality. Note that large hardware systems that cost significantly should be included in project sections of an organization’s budget.

Hardware section of an IT budget includes the purchase of computers, laptops, firewalls, switches, servers, renewals, licenses, cabling, warranties, and more.


According to managed IT services experts in Los Angeles, software budget should factor in all the current software costs, routine software implementation, and any other anticipated software purchases. Routine software implementation includes the labor costs to install and test the software on the company’s machines. As with hardware systems, large software implementations that require prior planning should be included in the organizations’ project planning.

Software category includes desktop software, server software, antivirus purchases, anti-spam, backup software, licenses, and renewals for the same.


The IT support section of the IT budget for your business in Los Angeles includes all the costs of maintaining the company’s IT system. They are ongoing expenses that maintain the current IT network and infrastructure and provide for the adequate helpdesk. For most companies, they include salaries for internal IT staff, monthly support for external IT consultants, training internal IT staff, VPN expenses, and other outsourced services costs such as monitoring, patching, and spam filtering.

Backup/Data Recovery

Despite the surge in cybersecurity threats, most organizations overlook the need to budget for backup services for business continuity after a disaster. This budget caters to the costs of creating data backup, disaster recovery systems, mirrored data, and storage of organizations’ data in data centers.

A proper IT budget should allocate sufficient monetary resources to IT programs to keep the department running effectively. It should feature numeric manifestations of the company’s IT strategy, both short and long term. By nature, IT budgets fluctuate according to hardware and software replacement cycles. As you budget for external managed IT services in Los Angeles, consider the services of DCG Technical Solutions. Contact us now to get a reliable and fully fletched IT infrastructure for your company’s needs.