10 Common Mistakes to Avoid When Choosing IT Infrastructure for SMEs

Introduction

Imagine losing a significant proportion of your yearly revenue due to a single, poor IT infrastructure decision or in an attempt to save money by underinvesting in technology. Shocking, isn’t it? But for many Small to Medium-sized Enterprises (SMEs), this isn’t just a hypothetical scenario; it’s an all-too-common reality. In this article, we’ll examine the ten most significant mistakes that SMEs frequently make when choosing their IT infrastructure.

1. Focusing Solely on Cost

The Pitfall

For SMEs operating on tight budgets, the allure of inexpensive IT solutions is often irresistible. Businesses frequently opt for the cheapest IT infrastructure available without considering other important factors.

The Repercussion

Opting for a budget solution often leads to a host of problems. Frequent system downtime, sluggish performance, and inadequate support services can affect productivity. In the long term, these issues can cost much more than the initial savings on the cheaper solution. According to the IT downtime report by Ponemon Institute, businesses can lose tens of thousands of dollars or more to downtime.

The Solution

Rather than choosing the cheapest option, it’s more prudent to opt for a cost-effective solution that offers a solid return on investment (ROI). Factor in not only the initial costs but also the total cost of ownership, which includes maintenance, upgrades, and potential downtime costs.

2. Ignoring Scalability

The Pitfall

Many SMEs fall into the trap of planning for the immediate future while ignoring long-term scalability. They often purchase infrastructure that suits their current needs but doesn’t allow for future expansion.

The Repercussion

As your business grows, you might find that your initial infrastructure doesn’t have the capacity to meet your evolving needs. Scaling up an inflexible system can be a time-consuming and costly venture.

The Solution

From the outset, choose a scalable solution. Whether it’s cloud storage that can be easily expanded or a modular networking system that allows for the addition of more devices, scalability should be at the forefront of your decision-making process.

3. Lack of Customisation

The Pitfall

Opting for off-the-shelf solutions might seem convenient, but they often lack the features tailored to the unique needs of your business.

The Repercussion

You’ll find yourself compromising on functionalities that could make your operations more efficient. These inefficiencies could lead to decreased productivity and even loss of business.

The Solution

Opt for IT infrastructure that can be customised to your specific needs. Platforms like VMware offer highly customizable solutions that can be tailored to suit a variety of business models.

4. Neglecting Security Measures

The Pitfall

With cybersecurity frequently making headlines, it’s shocking how many SMEs still view robust security measures as optional add-ons rather than integral components of IT infrastructure.

The Repercussion

Cyber-attacks are increasingly sophisticated and frequent, especially against smaller businesses perceived as ‘easy targets’. A study by Symantec shows that cyber-attacks on small businesses rose by 300% from the previous year, making it clear that attackers are setting their sights on this vulnerable demographic.

The Solution

Opt for a solution that has robust, integrated security features like firewalls, intrusion detection systems, and data encryption. Furthermore, enable multi-factor authentication and regular security audits to ensure that your system remains secure.

5. Inadequate Support and Maintenance

The Pitfall

The need for reliable support and maintenance services is often underestimated, especially among SMEs that lack in-house IT expertise.

The Repercussion

Without reliable support, you’re leaving your business vulnerable to myriad risks, including technical malfunctions and cybersecurity threats. The repercussions can be severe, impacting both operations and reputation.

The Solution

Opt for vendors that offer round-the-clock customer support and periodic maintenance checks. Companies like Cisco offer excellent after-sales support, helping businesses stay operational at all times.

6. Overlooking Data Backup and Recovery

The Pitfall

Many SMEs, in an attempt to save costs, forego a solid data backup and recovery plan, assuming that data loss is an unlikely event.

The Repercussion

Data loss can occur for a multitude of reasons, from hardware failure to cyberattacks or even human error. A study by IDC indicated that as many as 40% of SMEs don’t back up their data at all.

The Solution

Implement a robust data backup and recovery strategy. Use automated backup solutions and store data in multiple locations, including off-site storage. Periodically test these backup systems to ensure they are functional.

7. Poor Vendor Research

The Pitfall

Often, SMEs pick vendors based solely on a few recommendations or merely because they offer the lowest price.

The Repercussion

Poorly-vetted vendors could provide subpar products, leading to an unstable IT infrastructure. Worse, they may lack the capabilities to offer adequate after-sales support, leaving you stranded in case of an issue.

The Solution

Conduct in-depth research before choosing a vendor. Consult online reviews, industry publications, and seek opinions from other businesses that have used the vendor’s services. Check for any case studies or reports that could shed light on their reputation and reliability.

8. Failure to Consider Compliance and Regulations

The Pitfall

It’s shockingly easy to overlook local and international regulations that govern data protection, especially for SMEs that might not have a legal department.

The Repercussion

Failing to comply can result in penalties and damage to your business reputation. Non-compliance with regulations like GDPR can attract fines up to 4% of annual global turnover or €20 Million, whichever is higher.

The Solution

Consult with legal experts and compliance officers to ensure your IT infrastructure adheres to all local and international laws. Platforms like Microsoft Compliance Manager can help you manage and meet your compliance obligations.

9. Ignoring Energy Efficiency

The Pitfall

In the pursuit of lower upfront costs, energy efficiency is often ignored. Businesses frequently opt for older, less-efficient hardware to save money.

The Repercussion

In the long term, inefficient hardware can significantly bump up operational costs. According to the U.S. Department of Energy, energy-efficient technologies can save businesses up to 30% in energy costs.

The Solution

Choose hardware and software solutions that prioritise energy efficiency. Not only is it good for the planet, but it’s also great for your bottom line.

10. Over-Complicating the Infrastructure

The Pitfall

Some businesses, in a bid to be ‘future-proof’, overcomplicate their IT infrastructure, adding unnecessary layers and components.

The Repercussion

Complex systems are harder to manage and can lead to inefficiencies. The risk of malfunction increases exponentially with the complexity of the system.

The Solution

Adopt a minimalist approach, focusing on what your business genuinely needs. Complicated doesn’t necessarily mean better.

Conclusion

Choosing the right IT infrastructure is a critical decision that can make or break your business. Avoid these common mistakes to ensure that you invest in a robust, scalable, and efficient IT infrastructure that supports your business’s growing needs.

Remember, the cheapest option isn’t always the most cost-effective in the long run, and the most expensive isn’t necessarily the best. It’s about finding the balance between your needs, your future goals, and your budget.