How should we budget for IT upgrades?

Separate IT spending into three groups: recurring costs, planned replacements and one-off projects. Then spread replacements across several years so you are never replacing everything at once.

The three groups

  • Recurring costs: subscriptions, support contracts, internet and licenses. These should be predictable, so review them before each renewal.
  • Planned replacements: laptops, desktops, network equipment and servers, scheduled by age and support status rather than replaced when they fail.
  • Projects: changes such as moving to cloud file storage or opening a new office, each budgeted on its own.

Practical tips

Record the purchase date of every device so you can see when each one is due. Stagger replacements so a similar number of devices are refreshed each year. Watch software end-of-support dates, because they can force a replacement earlier than planned, as the end of Windows 10 support in October 2025 did for many businesses. Keep a modest contingency for genuine surprises.

Match your financial year

Align roadmap phases with your budgeting cycle so each phase lands in a budget that has already been approved for it.

More on budget-aligned IT planning, or read what an IT roadmap is.