Top 2018 Considerations for

IT Budget & Planning

Presented By: Systems Engineering’s

Joe McIntyre &

Brad Sprague

About Us

• 30+ years combined IT

experience

• Work actively with current and

potential clients

• IT thought leaders

Joe

McIntyre

Brad

Sprague

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Agenda

• About Systems Engineering

• SE Budgeting Roadmap

• “The Fundamentals”

• 2018 New Considerations

• Budget Creation

• Scheduling and Execution

About Systems Engineering

• Founded in 1988

• Headquartered in Portland, ME

with a new office location in

Manchester, NH

• 100% Employee Owned since

2008

• 150+ Employees

• Specialize in IT Projects and

Managed Services

• Cross-Industry Expertise:

Education, Healthcare, Legal,

Accounting, Municipal,

Manufacturing, Retail

Identify

Prioritize

Budget

Schedule

Execute

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Identify: Budgeting Fundamentals

• Getting Started – “Identify”

–Lifecycle Management

–Manufacturer Renewals

–Insourcing vs. Outsourcing

–Strategic Plan Alignment

–Innovation

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Identify: Lifecycle Management

• Useful life of hardware

– Servers & storage: 4-5 years

– Desktop computers: 4-5 years

– Mobile computers: 3-4 years

– Extended warranties

• Hardware limitations

– Firewall throughput

– Disk I/O

• Availability of updates and upgrades

• Compatibility with other systems

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Identify: Manufacturer Renewals• Provide hardware and software support for a given platform

• Provide version updates

• Provide version upgrades

• Provides subscriptions to on-going services, signature updates (A/V, IPS, URL

Filtering, Anti-Spam, DNS, Secure Certificates, IaaS, etc.)

• Yearly agreements

• Renew at different times of the year

• Reinstatement fees

• SMBs: must involve a reseller

• Tips and Tricks:• Multi-year agreements to save money

• Contract Management software

• Leverage your MSP for tracking renewals

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Identify: Insourcing vs. Outsourcing

• Subject Matter Experts are a vital component of any IT practice.

• Be courageous. Be willing to explore. Be willing to think outside

the box. Push yourself outside of your comfort zone.

• Know your limits. Be humble. Recognize the capacity and

capability of your IT organization. Be wise about the risks.

• Applications vs. Infrastructure

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• Know your business’s strategic initiatives

for 2018 and beyond.

• Are technology investments required to

support these initiatives?

Identify: Strategic Plan

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Identify: Innovation

Information Technology Management should be much more than just

keeping the blinking lights green and the disks spinning.

What technology investments can your business make that would

enhance your competitive position in your marketplace?• Enhancing customer experience.

• Improving workflow and creating operational efficiencies.

• Attracting greater talent.

• Improving internal and external communications.

• Enhancing collaboration for achieving more deliverables in less time.

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Identify: 2018 New Topics - New and Revisited

• Culture of Security

• Cloud Migration

• Collaboration

• Identity Management

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Identify: Culture of Security

Protecting your business from cyber threats must include:

➢Informing your users of the risks.

Acceptable Use Policy

End-user Security Awareness Training

➢Plans for protecting your IT assets.

Information Security Policy

Business Continuity Plan

Table Top Exercises

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Identify: Cloud Migration

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Identify: Microsoft End of Support

October 2020

January 2020

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Office Groups

Teams

StaffHub

To-Do

Bookings

Identify: Microsoft Office 365

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Identify: Content Collaboration

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Identify: Cloud Storage

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Identify: Identity-Driven Security

• Access anywhere, at any

time, from any device

• Equal functionality in the

office, at home, and mobile

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Identify: Identity-Driven Security

• Confirming who you are

– Conditional Access

– Multifactor Authentication

– Single Sign-on

– Information Rights Management

– Azure Information Protection

• Policy adherence

Identify

Prioritize

Budget

Schedule

Execute

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Prioritize

• Available funding?

• Who’s at the table?

• How do decisions get made?

• What are the fundamentals?

• Value/ROI

• Compliance

Identify

Prioritize

Budget

Schedule

Execute

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Budget

Line Item Estimated Cost

Hardware refreshes $xx,xxx

Software version upgrades $xx,xxx

Manufacturer Maintenance

- Antivirus

- Anti-Spam

- Citrix

- Cisco SMARTnet

$x,xxx

$x,xxx

$x,xxx

$x,xxx

Carrier Costs

- Dial tone

- Internet

- Wide Area Network

$x,xxx

$x,xxx

$xx,xxx

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Budget (cont.)

Line Item Estimated Cost

SaaS Subscriptions

- Office 365

- Vertical applications

- Adobe

- AutoCAD

$xx,xxx

$xxx,xxx

$x,xxx

$x,xxx

IaaS & PaaS Services

- Data Center

- Microsoft Azure

- Amazon Web Services

- Hosted phones

$xx,xxx

$xx,xxx

$x,xxx

$xx,xxx

Staffing

- Applications

- Infrastructure

- End user support

$xx,xxx

$xx,xxx

$xx,xxx

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Budget (cont.)

Line Item Estimated Cost

Staff Augmentation

- Network Administration

- Help Desk

- Software Development

- Deployments

$xx,xxx

$xx,xxx

$xx,xxx

$xx,xxx

Managed Services

- Performance & Uptime Monitoring

- Security Information & Event Monitoring

- Managed Patching

- Incident response

- Cloud backups

$xx,xxx

$xx,xxx

$x,xxx

$xx,xxx

$xx,xxx

Security Training $x,xxx

Technology Training $xx,xxx

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Budget (cont.)

Line Item Estimated Cost

Projects

- Exchange Online

- ERP System Replacement

- Barcode Scanning System

- Call Center Deployment

- Inter-branch Video

- Disaster Recovery Site

- Cloud file storage migration

- SharePoint deployment

$xx,xxx

$xxx,xxx

$xx,xxx

$xx,xxx

$xx,xxx

$xxx,xxx

$xx,xxx

$xx,xxx

Unbudgeted Expenses 15%

Identify

Prioritize

Budget

Schedule

Execute

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Schedule and Execute: What to do next (or first)…

• Understand your organization’s budget cycle

• Work with your SE Account Manager

• Understand the strategic direction and initiatives of

your business

• Review and update your five year plan

• Consider what End-of-Life items put hard dates into your plan

• Plan backwards from those hard dates

• Submit

• Get approval

• Plan and schedule your projects!

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Schedule and Execute: CapEx vs. OpEx

• CapEx – funds used to purchase goods/services to expand the business’s abilities.

– Recorded as an asset and expensed over time using a depreciation schedule for tax benefits.

– Hardware, software, and professional services

– IRS Section 179 deduction

• OpEx – funds used for ongoing costs of running the business.

– Fully tax deductible for yearly expenses

– Property taxes, rent, insurances, utilities, etc.

• Leasing

– Leasing is method of converting CapEx to and OpEx.

• Protect your cash

• Predictable expense

• Elastic costs

• Potentially greater tax benefit

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Questions?

Systems Engineering Contact Information

Phone - 888.624.6737

Web - syseng.com

Email - events@syseng.com