Node4 expects a second year of SME IT budget increases

Small firms are planning to increase their IT investments this year to ensure that they are able to deliver business continuity

Small businesses should increase their IT budgets next year as they look to improve infrastructure, security and to upgrade ageing hardware that could undermine the integrity of their operations.

The expectation that the vast majority of smaller firms will be increasing spending this year came from data centre specialist Node4, which also highlighted a similar situation in 2014.

This year should see 60% of SMEs, in firms of 50 to 500 employees, increasing their IT budgets with 7% expecting spending to go above 10%. Only a small minority are predicting a decrease.

smaller firms have put disaster recovery and business continuity at the top of their agenda but recognise that the threats to keeping the lights on come from under invested infrastructure, security worries and hardware that cannot cope with what it is now being expected to do.

The consequence of the need  for investment combined with an acceptance that perhaps there is an absence of in-house skills is leading more SMEs towards cloud and hosted options.

“Of course IT infrastructure is vital to how businesses operate today - however it is noteworthy that so many SMEs would rather not have the headache of the day-to-day administration and management of their infrastructure that can be complicated, tedious and time-consuming,” said Paul Bryce, business development director, Node4.

“And frankly, nor should businesses have to worry about that. The technology exists to free in-house IT staff from the mundane admin of infrastructure, enabling them to add significantly more value to their organisations through application and service development," he added.

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