Factors That Affect the Cost of IT Infrastructure
April 28th, 2023 | 3 min. read
By Jordan Pioth
Today’s work environment relies heavily on digital technology. If your organization does not properly manage its IT infrastructure, it may become outdated, resulting in security vulnerabilities and poor productivity.
No one wants to have a poor-performing IT infrastructure that can hinder the success and productivity of your organization.
An outdated IT infrastructure can affect the way employees work, negatively impacting your organization’s financial performance.
Additionally, poor-performing IT infrastructure increases the chance of a cyberattack creating even more direct and indirect expenses for your organization.
Coeo has helped thousands of customers with their IT infrastructure and knows how important appropriate IT infrastructure is to an organization.
We also want to ensure you understand the factors that affect the cost of modernizing your IT infrastructure so you can plan accordingly for a proper enhancement to your infrastructure.
By the end of this article, you will know what IT infrastructure is, the different types of IT infrastructure, and the factors that determine the cost of IT infrastructure.
What is IT infrastructure?
IT infrastructure is referred to as the hardware and software services that enable a company’s IT capabilities.
Examples of IT infrastructure include servers, network tools, and storage devices that keep you and your employees connected to your organization’s network.
Better-performing IT infrastructure brings greater flexibility and security to an organization’s network. This will help your organization improve communication internally resulting in better productivity and efficiency.
Types of IT infrastructure
There are two main types of IT infrastructure that an organization can utilize. These two types of IT infrastructure are traditional and cloud infrastructure.
● Traditional IT infrastructure
Traditional IT infrastructure is typically made up of hardware and software components such as data centers, servers, enterprise application software solutions, laptops, and desktops.
Traditional IT infrastructure typically relies more on hardware than cloud solutions.
As a result, this infrastructure typically requires more power and physical space and is usually more costly because of the significant hardware and maintenance costs.
● Cloud IT infrastructure
Cloud IT infrastructure is similar to traditional IT infrastructure but is constructed and resides in the cloud instead of having all of the technology physically at the location of the customer.
Cloud infrastructure allows your employees to access its components through the cloud using the internet.
It enables end users to access the resources they need without having to install significant hardware on the premises of the organization.
With a cloud infrastructure, the physical servers are set up and maintained at the service provider’s location(s). Your organization is then connected to these servers through the internet.
Factors that affect the cost of IT infrastructure
Many different factors can drive the cost of an IT infrastructure up or down. The factors that affect the cost of an IT infrastructure include:
● Type of IT infrastructure
As mentioned above, there are two main types of IT infrastructure that an organization can utilize. This is one of the main factors that affect the cost of IT infrastructure.
Since traditional infrastructure requires more physical hardware and is usually installed on the premises, it is typically more expensive because of the cost of the hardware and the installation and maintenance of that hardware.
Additionally, because of the physical hardware that is required, you may need a larger space to install it.
This, of course, increases the cost of real estate if more space is needed to accommodate the hardware.
Conversely, if you decide to utilize cloud IT infrastructure, you may have a less expensive solution since there will be fewer hardware costs and space requirements.
● Organization’s needs
The needs of your organization will determine the specific solution to best support your IT infrastructure.
For example, if your organization is smaller, you may only need to spend a few thousand dollars on IT infrastructure to purchase a few servers and some basic networking equipment.
However, a larger organization may require IT infrastructure costing a few million dollars. Larger organizations typically require more hardware and software to be integrated into their IT infrastructure resulting in more costly infrastructure.
● Maintenance costs
Aside from the cost of the actual infrastructure, there are also maintenance costs that need to be accounted for as well.
Technology is constantly advancing which results in the need to update your infrastructure regularly with new software and hardware.
In addition to the costs required to update your software and hardware, there are also patches that need to be fixed when it comes to security as well as backups that incur additional costs.
Your organization should plan and budget for additional maintenance and upkeep costs in addition to infrastructure and installation costs.
Next steps to purchasing IT infrastructure
Now you know what IT infrastructure is, the types of IT infrastructure, and the factors that go into the cost of IT infrastructure. This will enable you to have a better understanding of what your IT infrastructure will cost.
No one wants to have a poor-performing network and an updated IT infrastructure will help your organization be more productive and efficient.
Knowing the factors that go into the cost of IT infrastructure will allow you to better understand the cost of the service.
While the cost of IT infrastructure varies significantly, figuring out what your organization needs will help you determine a range for your IT infrastructure cost.
Coeo has helped thousands of organizations with their IT infrastructure and knows how important it is.
We want you to know the factors that go into the cost of IT infrastructure so you can determine the potential cost of your organization’s infrastructure.
If you would like to speak with our team to talk about the cost of IT infrastructure or ask any questions you may have you can schedule an appointment.
Read these articles below to learn more about solutions that can benefit your organization’s IT infrastructure:
When he's not creating content for Coeo, Jordan loves to watch sports, hang out with friends and family, and anything sneaker-related.