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| Information
technology (IT) is a key investment for many small businesses
and should be chosen with care. Computer hardware is the most
recognisable part of IT. Software is needed to make hardware
useful. Hardware is an important part of your business assets,
and should be chosen so that it matches your business needs. |
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Quick links:-
Desktop computer hardware components
Choosing desktop computer hardware
Servers
Networks
Printers, scanners and multi-function
devices
Computer hardware
installation and support
Purchasing
or leasing computer hardware
Computer
hardware - security issues |
You cannot choose the right hardware unless
you know exactly what you want it to do for you. You should
identify areas where computer technology might be able to
help your business, for example:
- cutting costs by automating routine tasks
- improving customer service levels, perhaps by using an
Internet-based system that customers can access eg allowing
customers to renew their car insurance online or check on
the status of package that has been sent via a courier company,
without needing to contact any member of staff directly
- increasing your margins by helping your employees work
more efficiently
- introducing a new line of business that requires IT for
delivery to the customer for example, to deliver electronic
information or content directly to the customer, or enable
them to take part in some form of online auctions
Make a list of the key hardware investments you could make,
then prioritise them and see which you can afford to implement
now and which will have to wait.
If you already have computer hardware in your business, make
sure any new purchases are compatible with it. You may need
to upgrade or replace some of your existing equipment to make
the most of your new investments. Investigate the costs, as
it may be just as cost-effective to install a whole new system.
It is a good idea to keep a register of your IT hardware
assets showing when you purchased them and what you paid for
accountancy and taxation purposes. This will help eligibility
for any allowances from HM Revenue & Customs for IT hardware
and allow your accountant to work out depreciation at the
end of the year.
Don't just focus on your current needs. Look at your plans
for the future and any expansion they might involve. Make
sure new equipment can cope with increases in customers, employees
or your products and services.
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Desktop computer hardware components
Desktop hardware, such as PCs, is the most common type of
hardware purchase for a small business. The cost of hardware
depends on its specification. This in turn is determined by
some key components. When you buy desktop hardware you will
need to decide what the specification of these key components
should be.
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The processor
is the heart of a desktop PC. Processors are distinguished
by their speed measured in Gigahertz (GHz). The higher the
speed, the faster the PC will be. For normal office-based
PC usage, it is not necessary to buy the fastest processor.
A typical processor running at about 2 GHz delivers excellent
performance for normal office functions.
Memory is used by the processor
to run programs. Generally, the more Random Access Memory
(RAM) you have, the better the PC will run when using several
programs at once. A typical office PC can run well with 512
megabytes (512MB) of memory and this is a good minimum specification.
The disk is used to store
the data that you create in your business as well as the programs
that you use. Its capacity is much greater than the RAM. A
typical office computer has about 40 gigabytes (40GB) of disk
space, but if you intend to use a single desktop PC as the
main storage location for all your business data then you
will need more.
The monitor is the display
screen. There are two types of monitor - flat screen or cathode
ray tube. Flat screens are more expensive but are becoming
more widely used as they use less desk space and generate
less heat. Select at least a 15 inch monitor for desktop use.
The keyboard and mouse usually
come as part of a bundle but you may be able to select wireless
devices that make desktops neater. |
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Choosing desktop computer hardware
There are two types of computer that you might need for your
business - desktop PCs and laptops.
If you carry out all your work in one place, a desktop computer
will meet your needs and will offer the best price for a given
level of performance. Desktop PCs are generally more durable
than laptops - an important factor in a busy office.
Desktop PCs can generally be repaired and upgraded by local
PC shops using standard off-the-shelf components. This can
extend their life considerably. Laptops are more difficult
to repair and may need to be returned to the supplier.
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If you need to use a computer while away from
your office, a laptop can be invaluable. They are particularly
suitable for salespeople making client visits and for employees
who work from home. See our guide on mobile technology.
A laptop can be used in place of a desktop PC for workers who
occasionally need to work in the office. In this case you should
consider a docking station that allows the laptop to be connected
to the business network and a power supply.
Laptops are easy to steal and need additional security measures
such as a security cable to lock them to a desk when away from
base.
Some workers may benefit from having personal digital assistants
rather than a laptop. These devices can synchronise data such
as diaries, telephone numbers and short documents with a desktop
computer and are ideal for workers who need to make short notes
while out of the office. |
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Servers
Servers are used to store data and programs that will be
shared and used by many different people. A typical small
office with a number of desktop PCs will have one or more
servers connected by a network.
You should think of a server as a shared resource and a repository
for your business information. Given its central role, its
specification needs to be much greater than the typical desktop
PC.
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The disk storage capacity
of your server needs to be large enough to keep all the current
data for your business. You should consider at least 120 gigabytes
for a small server, though you may need many times this amount
of storage.
Your server must be capable of rapid repair since a breakdown
will halt most of your IT functions. Servers are often built
so that key components such as disks and power supplies can
be quickly changed. More expensive servers will have redundant
components so that if one fails another will take over automatically.
A lot of data will be flowing in and out of your server. All
this data needs to pass through a special connector card to
your Local Area Network. This card, called a Network Interface
Card needs to be fast enough to handle the flow of data - therefore
it is common to use a card of one gigabit or greater.
Servers are normally kept in a secure location, often alongside
your networking equipment. It is important to prevent casual,
physical access to your server because of the damage that could
be done to your business information.
A maintenance contract for a server is a wise investment, especially
if you have limited in-house IT expertise. |
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Networks
Unless your business has only a single desktop computer,
you should consider installing a Local Area Network (LAN).
If you have an office with several employees and a server
then a LAN is essential for your IT system to run efficiently.
A LAN connects all your IT hardware together and permits the
sharing of data and resources such as printers and servers.
It is much more effective to use a LAN than to share data
across a number of desktop PCs using disks or similar methods
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LANs consist of
wiring and some specialised components. The wiring should be
installed by qualified suppliers to a recognised standard. This
will provide you with a number of outlets into which devices
such as PCs can be connected.
The special LAN components are called hubs or switches. These
provide the central point where data is exchanged between devices.
The term "hub" refers to older technology which, although
cheaper, does not offer the same performance as a switch. You
should select a switch with enough "ports" or sockets
to support all the connected devices in your office with a few
spare for expansion. Switches should comply with networking
standards, and you should seek expert advice if you are unsure
what is needed for your business.
Your switches should be located in a secure area, eg next to
your servers. You should restrict access to your switches, since
interference could cause many of your desktop PCs to lose their
network connections.
An alternative to a wired network is a wireless LAN. If at all
possible, you should use a wired LAN for the main part of your
office network, and use wireless technology for workers who
need mobility around the building. |
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Printers, scanners and multi-function devices
Printers are essential for most businesses. There are three
basic types of printer.
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Laser printers
can produce colour or black and white pages and are suitable
for most office printing needs. They offer the best price
to performance ratio if you have a high volume of printing.
They are more expensive than other types of printers, but
also have the lowest running costs.
Inkjet printers are usually
used for full colour printing. Some inkjet printers can produce
photographic quality images. Although cheap to purchase, inkjet
supplies, like paper and ink cartridges, make them expensive
per page printed. They are also slower than comparable laser
printers.
Impact printers, such as dot
matrix printers, are now rarely used except for special purposes,
eg for printing forms used with accounts packages.
Printers can be directly connected to desktop PCs, or shared
by connecting them to a network. Shared printers are preferable
for most small offices, but some workers may need a personal
printer in a secure location, particularly if they are dealing
with sensitive or confidential information.
Scanners are used to capture
images digitally. They can be useful in a small office for
storing images that are only available in print and for extracting
text from documents such as books. Scanners can be connected
directly to a desktop PC.
A small office usually needs a printer, a photocopier, a
fax machine and perhaps a scanner. These can be combined in
one single multi-function device.
These have several advantages:
- the total cost may be lower than the combined cost of
separate units
- they save floor and desk space
- there is less to install
The disadvantages of such devices are that they may not deliver
all the performance available from separate units and if they
fail, there is more to replace. A multifunction device has a
printing mechanism, a scanner and other hardware all in the
same box. If any part of it breaks you may have to replace all
of it at once, possibly with a new multi-function unit. If a
stand-alone scanner fails you can replace just that unit at
minimal cost. |
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Computer hardware installation and support
Unless you have in-house expertise, you will probably need
outside help for such things as hardware installation, training
and other support.
A computer can usually be set up and operated by a non-expert.
However, you may need help from your supplier to install more
complicated systems, such as a network, which will involve
cabling and reconfiguration. See
our guide on how to get the most from your network. |
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It is possible to get standard software packages
which include access to a helpdesk, either by phone or through
the Internet. Find out what the charges are and, if possible,
whether the helpdesk has a good reputation.
You may also want a maintenance contract, either from your supplier
or an independent maintenance company. On-site cover, - which
involves someone coming to your premises to make repairs, can
get your system running again quickly. However, this will be
more expensive than return-to-base repairs, which involves sending
your equipment away to be repaired.
Establish the quality of the service. For example, check whether
the engineers work to ISO 9000 standard and what quality of
parts they use. Find out about the ISO 9000 standard on the
BSI Global website.
For a critical system that your business relies on completely,
you may want a maintenance contract which guarantees repair
or replacement within a short time of any fault developing.
The Internet is an invaluable source of information about computer
hardware. Many suppliers now offer support pages on their corporate
website where documentation, help and upgrades to software can
be obtained.
It's worth remembering that to get the most from new technology,
employees often need training and support for a new computer
system. To find out more about how to assess your staff's training
needs, see our guide on basic IT skills. |
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Purchasing or leasing computer hardware
When you decide to acquire computer hardware, you will find
you have a choice between buying outright, hire-purchase or
leasing. Which route you follow will depend on your business
needs, how much you want to spend and the level of advice
and support you need.
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The advantages of buying equipment outright
include:
- For small businesses, being able to deduct a percentage
of the value of their IT investments from their taxable
income. This includes hardware, software and mobile phones.
You can find out about computer-related tax allowances on
the HM Revenue & Customs website.
- Not being tied into medium or long-term agreements which
may be difficult to end if your needs or circumstances change.
The disadvantages of buying outright include having to pay
the full cost up front. This may cause cash flow pressures
as you can't easily spread the cost to coincide with money
coming into the business.
See our guide on how to choose and manage your IT supplier.
The advantages of hire-purchasing or leasing include:
- Financial flexibility - you can spread the cost of your
equipment over a period of time so its impact on your cash
flow is less severe.
- Tax benefits - as with purchasing, leasing can also offer
tax benefits. Businesses can usually deduct the full cost
of lease rentals from taxable income. Consult your accountant
for specialist advice in this area. See our guide on how
to choose and manage an accountant.
The disadvantages of hire-purchasing or leasing include the
following:
- the equipment's overall cost may be greater than if you'd
purchased it outright
- there can be more administration work involved
- your business doesn't actually own the equipment - it
remains the property of the supplier
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Computer hardware - security issues
Unfortunately, thefts of computer hardware from businesses
are common. In the event of a theft you will have to deal
with the cost of replacing equipment and also the disruption
to your business. Theft of PCs and servers means the loss
of the data that is stored on them, so it is important to
take security measures for both hardware and data.
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You should check the physical security of your
offices, concentrating on access through windows and doors.
You can improve the physical security of desktop PCs by using
devices such as metal cages and anchoring devices, making them
more difficult to remove. Laptops should always be equipped
with security cables and securely locked away when not in use.
You should security mark all significant items of computer hardware,
using special pens or embossed labels. Allocate serial numbers
to all of your hardware and keep a record of these numbers.
Your data should be protected by making regular back-ups, some
of which should be stored off-site.
An uninterruptible power supply will make sure that your key
components, such as servers and network components, will continue
to operate for a short time even if there is a power cut. This
will give you time to shut systems down in an orderly fashion.
Surge protectors are another useful security device. These prevent
damage to your hardware from voltage spikes in the mains supply,
eg from lightning strikes. |
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The information on this page has been taken,
with kind permission, from Business link's practical advice
for business. The content of this guide was developed by The
National Computing Centre and is subject to Crown copyright
protection.
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