IT Planning for 2027: What Your Business Should Budget For
Most businesses set their budget for the coming year in the last few months of this one. If IT gets a single line that says “the same as last year”, 2027 could bring some unwelcome surprises.
Several changes are already fixed or under way. None of them need to be expensive, as long as you plan for them now rather than react to them later. Here’s what we’re advising our clients to budget for.
1. The phone line switch-off: 31 January 2027
The UK’s old copper telephone network closes for good on 31 January 2027. After that, every phone line must run over the internet.
It isn’t just your office phones. Alarms, lift emergency phones, card machines, door entry systems and franking machines can all rely on an old phone line. Some will need upgrading or replacing.
What to budget for: a check of every line and device, possible upgrades to alarms or other equipment, battery backup for your router, and perhaps a move to a modern cloud phone system. Our guide to the phone line switch-off has a full checklist.
2. Windows 10 computers are getting more expensive to keep
Windows 10 reached the end of its normal support in October 2025. Businesses can pay Microsoft for extra security updates, but the price doubles every year. In October 2026 it went up to $122 per computer for the year, and in October 2027 it doubles again.
Some older Windows 11 computers also need attention. Microsoft stopped updating Windows 11 version 24H2 (Home and Pro) in October 2026, so computers that haven’t moved to the newer version are no longer protected.
What to budget for: replacing any computers that can’t run Windows 11, and the time to upgrade those that can. We explain the options in Windows 10 security updates just doubled in price.
3. New computers cost more than they did
A worldwide shortage of computer memory, driven by huge demand from AI data centres, has pushed up the price of laptops, desktops and servers during 2026. Industry forecasters expect prices to stay high into 2027.
What to budget for: allow more per machine than you paid last time. Rather than replacing everything at once, plan a rolling programme: replace the oldest or slowest machines first, and spread the cost through the year. A good IT partner will keep a list of every device and its age, so you can see what’s due and when.
4. Microsoft 365 renewals
Microsoft raised prices for several Microsoft 365 business plans from July 2026. The increase applies when your subscription renews, so if you’re on an annual plan, you may not have seen it yet.
What to budget for: a small rise at renewal. It’s also a good moment to check you’re on the right plan, and that you’re not paying for licences for people who have left. Our guide to choosing the right Microsoft 365 plan can help.
5. Tougher Cyber Essentials rules
If you hold Cyber Essentials, or need it for contracts or insurance, the rules got stricter in April 2026. Two changes now cause an automatic fail:
- Two-step sign-in must be switched on for every cloud service that offers it, not just your email
- High-risk and critical security updates must be installed within 14 days
What to budget for: your renewal, and any work needed to meet the new rules before your assessment. Our Cyber Essentials guide explains the process.
6. Cyber security and backups
Attacks on small businesses haven’t slowed down. The UK Government’s Cyber Security Breaches Survey found that over four in ten businesses had a breach or attack in the past year. Cyber insurers are also asking more questions before they’ll cover you.
What to budget for: two-step sign-in everywhere, email filtering, protection on every computer, monitoring, staff training and a tested backup of Microsoft 365 as well as your computers. If you’re paying separately for each of these, it’s worth comparing that with a managed service that includes them all. See our cyber security page for what we include.
A simple way to plan
You don’t need a 20-page IT strategy. A one-page plan covering these points is enough for most small businesses:
- What must happen, with dates: the phone line switch-off, Windows 10 machines, renewals
- What should happen: replacing the oldest computers, improving security
- What would be nice: new projects that would save time or money
Then spread the costs across the year, so there’s no single painful month.
How we help
Every client of ours gets a technology roadmap and regular reviews as part of our managed IT support. We call our approach Get It Green: we show you where your IT stands in a simple red, amber and green report, then plan and budget the steps to get every area into the green.
If you’d like a clear picture before you set your 2027 budget, book a free IT audit. You’ll get the report and a plan, with no jargon and no obligation.
