ICT infrastructure budgeting

ICT infrastructure budgeting

The costs of developing and maintaining a school’s ICT infrastructure are significant. Annual expenditure on maintaining, replenishing and expanding school ICT infrastructure may amount to many hundreds of dollars per student. It is important, therefore, that every school adopts an effective approach to budgeting.

Some school systems and sectors provide policies, advice and tools for budgeting for ICT resources, including those funded through the NSSCF. Schools should adopt these where they are available.

ICT infrastructure costs include:

  • capital costs, including costs to acquire new hardware and software
  • recurrent costs, including costs for technical support, software licensing and telecommunications.

In some school systems and sectors, certain costs are managed outside the school through central budgets. The costs that are managed within schools are generally funded by:

  • general school operating grants from governments
  • parental contributions
  • ICT grants from the school system or sector to which the school belongs
  • Digital Education Revolution funding from the Australian Government
  • funding associated with school building programs
  • reserve funds of the school
  • sponsorships.

The technical complexity of ICT infrastructure and the interconnectedness of many hundreds of components mean that a holistic approach is needed across all four infrastructure categories: access devices, network infrastructure, application software, and support resources.

Budgeting also needs to reflect the procurement policies and advice of the school system or sector to which the school belongs.

The total cost of ownership of a school’s ICT infrastructure is the sum of all the costs associated with the acquisition, implementation and management of the various technology components. Capital expenditure for new components such as computers is only one part of the total cost. New components also add to future recurrent costs because they increase the ongoing demand for:

Replacement costs also need to be considered because components have fixed lifetimes—desktop computers typically need to be replaced every four years, while network cabling will generally last 10 years or more.

 

The capital cost items for enhancing ICT infrastructure and acquiring new components include the costs of:

  • hardware acquisition and replacement
  • software acquisition and replacement
  • new data cabling
  • changes to electrical wiring and equipment
  • environmental management equipment (including uninterruptible power supplies and air-conditioning units for server rooms)
  • consequential building changes, new furniture and fixtures
  • technical staff training associated with the purchase of new components
  • technical staff to design and install new components
  • disposal of redundant equipment by environmentally friendly means.
 

The recurrent cost items for ongoing management of the ICT infrastructure include the costs of:

  • hardware maintenance
  • software licensing
  • software maintenance
  • the replacement of obsolete hardware and software components
  • telecommunications
  • electricity
  • insurance
  • consumables, including paper and ink cartridges
  • the employment of technical staff
  • the training of technical staff (separate from the professional learning costs for teachers and school staff)
  • the engagement of suppliers of technical services.
 

See also: Procurement management

Some schools lease equipment and other components instead of purchasing them. In these cases, acquisition costs become recurrent costs instead of capital costs.

While leasing has some advantages, it is not appropriate for many schools. Schools should consult the policies of their school system or sector and seek advice before considering leasing.

 

It is good practice for schools to determine the baseline costs of managing their current ICT infrastructure for the current year and for at least the following three years. This involves estimating the annual costs of recurrent cost items. The costs that are managed directly by the school need to be distinguished from costs that are managed centrally by the school system or sector to which the school belongs.

Baseline budgets need to be regularly reviewed and updated to reflect cost changes.

 

Schools enhance their ICT infrastructures by acquiring new components. The enhancements required by a school are identified through ICT infrastructure planning processes, which in turn are driven by:

Schools need to determine the total costs of their planned infrastructure enhancements, taking into consideration:

Major enhancements to ICT infrastructure require careful project management, as additional management costs, including those associated with additional staff time, may be involved. These costs also need to be estimated. Some school systems and sectors provide advice on project management.

When considering enhancements, schools need to establish both the current and future changes that will be required to the baseline ICT infrastructure budget.

 

Some school systems and other organisations have developed online tools to help them estimate the costs of infrastructure enhancements. These are generally spreadsheets that calculate the multi-year capital and recurrent costs of acquiring new computers and other access devices.