For small and medium-sized businesses (SMBs), managing IT expenses is crucial to long-term success. With technology becoming central to every aspect of business, from daily operations to cybersecurity, smart IT budgeting ensures efficiency, security, and scalability. Industry standards recommend allocating 4-6% of annual revenue toward IT expenses. But what does that actually mean in terms of real numbers?
Let’s break it down based on company size:
- Micro-businesses (1-9 employees): $20,000 to $30,000 annually
- Small businesses (10-49 employees): $30,000 to $100,000 annually
- Medium-sized businesses (50-99 employees): $100,000 to $500,000 annually
These figures cover the essentials—IT infrastructure, support services, and cybersecurity. However, your IT budget should reflect your unique business needs, taking into account factors like industry requirements, growth projections, and the condition of your current technology infrastructure.
More importantly, maximizing value is key. This is where Online 3 shines, offering comprehensive IT solutions specifically tailored for SMBs, helping businesses get the most out of their technology investment while staying within budget.
Factors Impacting Your IT Budget
When it comes to IT spending, a one-size-fits-all approach doesn’t work. The following factors heavily influence how much your business should allocate to IT:
Industry-Specific Requirements
Highly regulated industries such as finance, healthcare, and education require stricter data security measures, meaning larger portions of their budgets must go toward compliance and cybersecurity. For example, 60% of SMBs that suffer a cyberattack shut down within six months, making cybersecurity investment essential.Current Infrastructure
If your current systems are outdated, maintenance costs can quickly skyrocket. Aging hardware can slow down operations, lead to more frequent repairs, and increase cybersecurity vulnerabilities. Investing in new systems now could save you significant costs down the road.Growth Plans
Planning for business growth means scaling your IT infrastructure alongside your team. Whether adding new employees or expanding into new markets, your IT budget needs to account for both immediate needs and future scalability.Cybersecurity
With cyberattacks on the rise, particularly targeting SMBs, strong cybersecurity measures are a must. A cyberattack on an SMB costs an average of $200,000, which makes it vital to invest in protective measures like multi-factor authentication and data encryption.Service Model
Finally, think about how you want to structure your IT services. Do you prefer per-user pricing that scales with your business, or would a flat-rate monthly retainer suit you better? Your preferred service model can influence how effectively you budget for IT.
IT Support Options for SMBs
When it comes to IT support, SMBs have three primary options: Outsourced IT Support, Self-Managed IT, and Managed Service Providers (MSPs). Here’s how each option stacks up in terms of cost and value.
1. Outsourced IT Support
Outsourced IT typically costs between $1,000 and $3,500 per month depending on the services you require. Outsourcing can be a good option for businesses that don’t have the internal resources for a dedicated IT team but still need expert support.
Pros:
- Cost-effective for small businesses with minimal IT needs
- Access to a wide range of expertise without hiring full-time staff
- Scalable based on the business’s changing needs
Cons:
- Less control over day-to-day operations
- May lack the personalized service that comes with in-house staff
Best for: Small businesses that want flexibility and expert support without significant upfront costs.
2. Self-Managed IT
For businesses with more complex needs, hiring in-house IT staff may be the right choice. An in-house IT engineer costs around $40,000 to $50,000 per year, depending on experience.
Pros:
- Full control over IT operations
- Dedicated staff with an intimate understanding of the business
Cons:
- High salary and long-term overhead
- Limited skill set compared to a larger IT team
- Scalability can become expensive as your business grows
Best for: Medium-sized businesses with the resources to hire full-time staff and the need for direct control over IT.
3. Managed Service Providers (MSPs)
MSPs offer comprehensive, fixed-rate IT services, typically charging $100 per user per month. This model provides ongoing support, including remote monitoring, cybersecurity, and helpdesk services.
Pros:
- Predictable, fixed monthly pricing
- Access to a wide range of IT specialists
- Proactive maintenance and 24/7 monitoring
- Scalable as your business grows
Cons:
- Less direct control over IT decisions
- Monthly costs can add up as the business expands
Best for: Businesses that need comprehensive IT support without the expense of hiring an in-house team.
Comparing Online 3’s Pricing and Value
Online 3 offers several managed IT service packages designed specifically for SMBs, and they stack up incredibly well against typical IT service providers. Here’s a quick look at their pricing and services:
Support 1 – Essentials:
- Price: $59 per user/month
- Includes: Unlimited remote support, Microsoft Cloud Services Support, Cloud Identity Management, and Cloud Mentoring.
Support 2 – Professional:
- Price: $79 per user/month
- Includes: All services in the Essentials package, plus Managed Device Support and software installation for up to 5 devices.
Support 3 – Advanced:
- Price: $99 per user/month
- Includes: All services in the Professional package, plus Teams Calling Support, Dynamics 365 administration, and Virtual CIO services.
Compared to the industry standard of $100 per user/month for MSPs, Online 3’s offerings are highly competitive. Not only do they provide proactive maintenance, cybersecurity, and 24/7 monitoring, but their Advanced Package even includes strategic IT planning through Virtual CIO services—something most providers charge extra for.
The Value of Online 3’s Managed IT Services
Choosing Online 3 means more than just keeping your systems running. Here’s why they provide exceptional value:
Predictable Costs
With per-user pricing, SMBs can easily forecast their IT expenses, scaling up or down as needed. For a 20-person team, the Professional package would cost $1,580 per month—less than the cost of hiring a single in-house IT engineer.Comprehensive Coverage
From cybersecurity and managed devices to helpdesk support, Online 3’s packages cover all aspects of IT. This ensures no surprises or unexpected costs for critical services like system upgrades or cloud management.Proactive Support
Unlike reactive IT services, Online 3 focuses on preventing issues before they cause downtime. Their 24/7 remote monitoring and automatic software updates reduce disruptions, ensuring your business stays productive.Scalability
As your business grows, Online 3 grows with you. Their per-user pricing ensures that you can add new employees or services without a dramatic increase in IT costs.Virtual CIO Services
Included in their Advanced package, Virtual CIO services provide strategic IT guidance to help your business align its technology investments with growth goals. This ensures that your IT infrastructure can support your long-term business objectives without the need to hire a full-time executive.
Why Choose Online 3?
For SMBs, Online 3 offers a unique combination of affordable pricing, comprehensive services, and expertise that makes them the ideal partner for businesses looking to optimize their IT spending. Their focus on security, productivity, and connectivity ensures your business has the technology foundation to grow and succeed.
Whether you’re a micro-business just starting or a medium-sized company ready to scale, Online 3’s support packages offer everything you need to keep your IT running smoothly and securely—at a price that fits your budget.
If you’re ready to get the most value out of your IT budget, contact Online 3 today to learn more about their flexible, tailored solutions for SMBs.
