The Rise of Hardware Costs – And How UK SMBs Can Stay in Control

Why does everything suddenly cost more?

If it feels like every new laptop, server or firewall quote is higher than the last, you’re not imagining it.

Over the last few years, UK businesses have seen hardware costs rise significantly. Global supply chain disruption, chip shortages, increased shipping costs and tighter security requirements have all pushed prices up – and SMBs are feeling it most.

The real problem isn’t just that hardware is more expensive. It’s that many businesses still treat hardware as an ad‑hoc expense. Something you deal with when a device fails – rather than something you plan for.

In this article, we’ll break down:

• What’s driving hardware costs up

• Why “just making it last a bit longer” can backfire

• How to plan refresh cycles so you’re not constantly firefighting

• Practical steps UK SMBs can take to stay in control of IT spend

What’s actually driving hardware costs up?

The surge in demand from AI and green technologies 

Artificial intelligence platforms, large-scale data centres and the rapid growth of electric vehicles are driving unprecedented demand for high-performance memory (RAM), Graphics Processing Units (GPUs) and advanced chips. These components now compete for the same supply as standard business hardware. At the same time, renewable energy infrastructure - such as smart grids and large-scale battery systems relies heavily on specialised chips, increasing global pressure on supply chains.

There isn’t just one reason. Hardware prices have been pushed up by a combination of factors:

1. Global supply chain issues

COVID‑19 disrupted manufacturing and logistics worldwide. Even as demand for tech increased (thanks to remote and hybrid working), factories and ports struggled to keep up.

That led to:

• Longer lead times

• Reduced availability of certain models

• Less discounting – especially on business‑grade kit

Some of that pressure has eased, but the price rises that came with it haven’t fully gone away.

2. Chip shortages and component costs

Modern devices rely on a complex mix of processors, memory and specialist chips. When semiconductor supply tightens, manufacturers have to pay more for components – and that cost eventually lands with end customers.

SMBs often feel this when:

• Entry‑level models quietly disappear

• “Like‑for‑like” replacements cost more than expected

• You’re pushed towards higher‑spec (and higher‑priced) devices

3. Security and compliance expectations

Ten years ago, a basic business PC just needed to run Office and email.

Today, that same device needs to:

• Support modern endpoint security

• Handle disk encryption

• Run multiple cloud apps

• Cope with Teams meetings, video calls and collaboration tools

That means many businesses can’t simply buy the cheapest option anymore. They need hardware that can support modern workloads and security expectations – from customers, insurers and regulators.

The hidden cost of “sweating” your hardware

When prices rise, the natural reaction is to keep devices for longer.

“Let’s just make the laptops last another couple of years – it’ll be cheaper.”

On paper, that feels like a saving. In reality, it’s often where costs spiral.

Here’s why:

1. Slow devices drain productivity

If a laptop wastes just 10–15 minutes of someone’s day, that can easily add up to over 40 hours a year lost per person – a full working week.

Multiply that across a team and suddenly that “cheap” device doesn’t feel cheap at all.

2. Support tickets creep up

Older hardware typically means:

• More performance issues

• More crashes and lock‑ups

• More time on the phone to IT support

You might not see a line item for this on an invoice, but you will see it in:

• Higher support bills (if you pay per ticket or per hour)

• Less time for your internal team to focus on their actual jobs

3. Security risk quietly increases

Old devices don’t just get slower – they often get less secure.

Over time, you can hit issues like:

• Operating systems going end‑of‑life (no more security updates)

• Hardware that can’t support modern security tools

• Devices that no longer meet Cyber Essentials or cyber insurance requirements

In the UK, the government’s Cyber Security Breaches Survey 2023 found that around a third of businesses reported a cyber breach or attack in the previous 12 months – with many facing direct financial losses. For medium and large organisations that experienced a breach, those costs frequently reach thousands of pounds once downtime, recovery and reputational damage are factored in.

Old, unsupported kit is often a weak link that makes these incidents more likely.

Read our guide: The Real cost of Slow Kit

The real risk: unplanned, “panic” spending

Rising prices are one thing. Being surprised by them is another.

Most SMBs don’t have a hardware strategy. Devices get replaced when:

• Someone’s laptop dies

• A server fails

• An application suddenly won’t run on an old operating system

That usually leads to “panic purchases”:

• Buying whatever is in stock, not what’s actually right

• Paying a premium because you need it now

• No time to negotiate, compare options or consider leasing

In our experience working with businesses across Leicestershire, Nottinghamshire and Derbyshire, the organisations who feel most pressured by hardware costs are rarely the ones spending the most. They’re the ones who have the least visibility and least planning.

How to get back in control of hardware costs

The good news: you don’t control global supply chains – but you do control how you plan and budget.

Here’s a practical framework we use with Somerbys IT clients.

1. Map what you’ve actually got

It sounds obvious, but many businesses don’t have a clear view of their hardware estate.

Start with:

• Laptops and desktops – who uses what, how old they are, when they were purchased

• Servers and storage – age, purpose, criticality

• Network hardware – firewalls, switches, Wi‑Fi access points

• Peripherals and specialist devices – printers, EPOS, barcode scanners etc.

A simple asset register (even in Excel) is a powerful first step. If you’re already working with Somerbys IT, we can help you build or refine this as part of a Technology Business Review.

2. Define sensible lifecycles

Not every device needs replacing at the same time, and not every device should be kept until it dies.

As a rough guide for business kit:

• Laptops: 3–5 years

• Desktops: 4–5 years

• Servers: 5–7 years, depending on workload and supportability

• Network equipment: 5+ years, but reviewed regularly

The key is to balance:

• Performance and user experience

• Security and supportability

• Total cost over the device’s life

3. Prioritise by risk, not just age

A five‑year‑old laptop used twice a week in a low‑risk role is very different from a five‑year‑old server running a critical line‑of‑business application.

When planning upgrades, consider:

• Business impact if that device failed

• Whether it holds or accesses sensitive data

• Whether it’s still supported by the vendor and OS

• How often it causes issues for your team

This helps you focus spend where it matters most.

4. Spread investment over 12–36 months

Instead of replacing 30 devices in one go every few years, you can:

• Replace a portion each year (e.g. 20–30% of laptops)

• Align upgrades with natural staff changes and role changes

• Consider leasing or device‑as‑a‑service for predictable monthly costs

This smooths out cash flow and reduces the shock of big, one‑off purchases.

5. Link hardware to your overall IT roadmap

Hardware planning shouldn’t sit in isolation.

It should connect to:

• Your IT strategy (e.g. cloud adoption, new line‑of‑business systems)

• Your cyber security posture (e.g. achieving or renewing Cyber Essentials)

• Your growth plans (e.g. headcount and new locations)

That’s why we build hardware into our wider IT roadmaps with clients – so you’re always looking 12–36 months ahead instead of reacting to whatever breaks this month.

What this looks like in practice for SMBs

For most businesses we work with, getting on top of hardware costs doesn’t mean spending more. It means spending better:

• Moving away from one‑off, emergency purchases

• Reducing the indirect costs of slow, ageing kit

• Making sure security and compliance aren’t undermined by old devices

• Giving staff the right tools so they can work efficiently

Over time, that usually results in:

• Fewer outages and firefighting

• Fewer surprise invoices

• Better visibility of where your budget is going

Final thought: you don’t need more hardware – you need more clarity

You can’t change global pricing. But you can:

• Know what you’ve got

• Decide how long you’ll keep it

• Plan when you’ll replace it

• Tie it all back to your business goals

When you do that, hardware stops being a constant frustration and becomes just another part of a sensible, manageable IT plan.

If you’d like help mapping your current hardware, understanding where your biggest risks sit, and building a realistic refresh plan, that’s exactly what we do at Somerbys IT. 

IT support with a human touch. No jargon. No scare tactics. Just clear advice that supports your business.

0333 456 4431 | info@somerbysit.co.uk | www.somerbysit.co.uk