With the end of financial year approaching, should we spend up on hardware and software?

The obvious answer to this one is – only if you need it.

If, like many of us, you currently work in a tentative environment and aren't sure if your business is about to grow or shrink, it's difficult to gain a clear perspective. Let me share some thoughts that should help you to decide on the right time to invest in IT systems and software.

Creaking infrastructure has a high cost in business, so it is well worth investing some time to contemplate a strategic approach to upgrades.

If your business employs information workers who sit behind PCs, chances are you are finding it very hard to find quality staff as your business grows.

Productivity is the key driver to invest in systems that enable your workforce to do more, in less time. This takes a whole-system approach to designing the right infrastructure and networks to support the right applications – ensuring your staff work efficiently. Creaking infrastructure can affect productivity so it may be easier to upgrade, than to hire additional staff to achieve 10% uplift in output.

Planning of new systems is complex – if you lack a sound strategy or the right resources to implement a strategy, it is likely that you will either buy the incorrect infrastructure and/or implement it poorly – which fails to get results. I call this "implementing brand new creaking infrastructure", and it's the worst possible outcome, as you invest the cash but fail to get the outcome you were hoping for. Fixing creaking infrastructure once your budget is spent is equally as challenging as justifying the next upgrade after the first one failed to deliver.

If you are investing, now is a great time to do so. With the Australian dollar at near record highs above parity with the US dollar, IT equipment is cheaper than ever. Most IT equipment is traded internationally in US dollars, so, relatively speaking, IT hardware is very cheap at the moment and coincidentally is highly accessible. Unlike the days when PCs cost $5,000 for a basic unit and it was hard to justify an upgrade against a $45K salary, these days a $1,200 expense against a $65K salary is a smart option.

Many suppliers will run end-of-financial-year specials. So, if you have any EOFY budget left and have computers that are more than three to four years old, you will do well to promptly develop a sound plan, then source reliable technical assistance and swiftly order the systems you need.

Remember, PCs and laptops are likely to be run out of distributors' stock towards the end of June, so place your orders early to avoid disappointment and delays.

David Markus is the founder of Combo - the IT services company that ensures IT is never an impediment to growth.