Before purchasing computer hardware, you have a number of things to consider.

Business benefits
Perhaps the most important thing you must think about is what benefits you want the new hardware to bring to your business - you cannot choose the right hardware unless you know exactly what you want it to do for you.
Hardware might be able to benefit your business by, 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 a package that has been sent via a courier company, without needing to contact your 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 an online auction

Once you have listed the key hardware investments you could make, prioritise them and see which you can afford now, and which can wait.

Compatibility
Make sure any new hardware is compatible with existing computer equipment. You may need to upgrade or replace some of your current 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.
Keeping a register of your hardware
Keep a register of your IT hardware assets showing the cost and date of purchase for accountancy and taxation purposes. This will help eligibility for any allowances from Inland Revenue for IT hardware and allow your accountant to work out depreciation.

Planning for the future
Don't just focus on your current needs - look at your plans for the future and any expansion this might involve.
Ideally you should develop an IT strategy to cover your needs for new systems over a period of about five years. Part of the strategy should deal with how your hardware can cope with increases in customers, employees and/or your products/services.
Bear in mind that if you decide to invest in new software, your hardware may need to be upgraded in order to run it.

Desktop computer hardware components
Desktop hardware, such as PCs, is the most common type of IT hardware purchased by a small business. The cost of hardware depends on its specification, which 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.
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 can run. 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 (MB) of memory. This is a good minimum specification, although if you are buying a new PC with Windows Vista installed, you will need at least 1 gigabyte (GB) of RAM.
The hard 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 at least 160 GB of hard 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 (CRT). 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 17-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.
There are alternative computers to conventional PCs available, such as Apple Macs. These have historically been used to support desktop publishing software but now also offer a comparable system for general office use.

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.
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.

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 existing 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. Over 80 per cent of laptops on the market are equipped with a Universal Security Slot that allows them to be attached to a cable lock or laptop alarm.

More than a third of laptop thefts occur in the workplace. You can help prevent this by using docking stations that are permanently fixed to your desktops and have a feature that locks laptops securely in place. If you are leaving laptops overnight, or for the weekend, lock them in a secure room or cupboard and use any additional locks, such as office or internal doors.

See also the page in this guide on computer hardware and security issues.
Some workers may benefit from having a personal digital assistant or other handheld computer 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.


Servers

Servers 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.
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.
The disk storage capacity of your server needs to be large enough to keep all the current data for your business. Consider 180 gigabytes (GB) as the bare minimum, although you will need a lot more if you deal with large files, eg graphic, image, video and audio files.
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 flows in and out of your server. All this data needs to pass through a special connector card to your local area network (LAN). 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 1 GB or greater.
Servers are normally kept in a secure, temperature- and humidity-controlled location, often alongside your networking equipment. It is important to prevent casual access to your server because of the damage that could be done to your business information, as well as physical damage from dust and other contaminants. See our guides on how to get the most from your network and IT security - the basics.
A server maintenance contract is a wise investment, especially if you have limited in-house IT expertise. You can find information about maintenance contracts on leading hardware supplier websites. A web search for 'server maintenance' will find other possible sources.

Networking your computers

If your business has only a single desktop computer, you have no need for a local area network (LAN). However, if you have an office with several desktop PCs and a server, 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.
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.

Printers, scanners and multi-function devices

Printers are essential for most businesses. There are three basic types of printer.
Laser printers produce colour or black and white pages and are suitable for most office printing needs. They are more expensive than other types of printers but are more economical if you do lots of printing and are relatively fast.
Inkjet printers are used for either colour or black and white printing. Some inkjet printers can produce photographic quality images. Although cheap to purchase, inkjet supplies, like paper and ink, 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 on 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. As with most computer equipment, unless you have in-house expertise, it is worth paying for a maintenance contract for your printer. Any failure of the equipment can then be dealt with quickly, reducing the disruption to your office. See the page in this guide on computer hardware installation and support.
Scanners are used to capture images digitally. They can be useful in an office for storing content digitally that is 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 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

Disadvantages of such devices are that they may not deliver all the performance available from separate units and, if they fail, you lose all the functions at once and will need to replace the entire unit.

Computer hardware installation and support

A single computer can usually be set up and operated by someone who is not an IT expert.
However, unless you have in-house expertise, you may need outside help, eg from your supplier, to install more complicated systems such as a full network. You may also need external help with training and support services.

When you buy hardware, the manufacture or supplier may offer you access to a helpdesk, either by phone or via the internet, at no cost or by subscription. Be sure to find out what the exact charges are, how long the help lasts for 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 but may be expensive. Return-to-base repairs, which involve sending your equipment away to be repaired, may be cheaper, but will also be inconvenient.
For a critical system that your business relies on completely, you may want a maintenance contract which guarantees repair or replacement at short notice when a fault occurs.
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, so be aware of your staff’s level of competency and be sure to get them the necessary training to be productive with the computer systems.

Purchasing or leasing computer hardware
When you decide to acquire computer hardware, you have a choice between buying outright, hire purchase or leasing. The route you follow will depend on your business needs, your budget and the level of advice and support you need.
Buying computer hardware outright

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. See our guides on capital allowances: the basics and first-year allowances.
	Not being tied into medium or long-term agreements which may be difficult to end if your needs or circumstances change.
Disadvantages of buying outright include having to:
	pay the full cost up front this may cause cashflow pressures as you can't easily spread the cost to coincide with money coming into the business
	replace equipment regularly - computer equipment depreciates quite quickly in value and may be obsolete after a few years, requiring a further outlay of money

See our guide on how to choose and manage your IT supplier.
Leasing computer hardware

Advantages of hire purchase or leasing of IT equipment include:
	Financial flexibility - you can spread the cost of your equipment over a period of time so its impact on your cashflow 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.
	An integrated maintenance contract and replacement equipment (in the event of total failure), often as part of the deal.
	The possibility of a periodic upgrade or replacement with new equipment as part of the package, keeping your office technology up to date.
Disadvantages of hire purchase 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 involved
	when leasing, your business doesn't actually own the equipment - it remains the property of the supplier
	when using hire purchase, your business will own the equipment at the end of the contract, by which time it may be obsolete

Computer hardware - security issues

Unfortunately, theft of computer hardware from businesses is common. Although laptops and other portable devices are the easiest to steal, in some cases, thieves want internal devices such as processors and chips, so don't assume that less mobile equipment will be any safer.
Site security

You should check the physical security of your premises, 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. Employees should also not allow building access to delivery personnel or other visitors but have them ring through to reception staff or other designated person.

Laptop security

Laptops should always be equipped with security cables and securely locked away when not in use. Docking stations should lock them firmly in place when on the desk. Mobile workers should be particularly careful not to leave their laptops in their cars or in other exposed places. Laptop users should ensure they choose secure passwords - ideally a random collection of letters and numbers. Users should also change their passwords regularly.
Other laptop security measures include the following:

	Choose a secure operating system and lock it down.
	Store any security keys for the laptop away from the laptop itself.
	Enable a strong Basic Input/Output System password - password protect the part that makes sure all the chips, hard drives, ports and central processing unit function together.
	Use permanent marker or also asset engrave using a metal, tamper-resistant tag on the laptop's outer case. Many police forces have ultraviolet marker pens available or you can buy them at office supplies outlets.
	Register the laptop with its manufacturer.
	Use a personal firewall.
	Use a portable device like a pen drive or memory stick to transport data when mobile.
	Don't use a laptop case but a nondescript carrying case like a rucksack or briefcase.
	Never leave your laptop in full view anywhere, including in vehicles.
	Make using your cable lock a habit.

Security marking

You should security-mark all significant items of computer hardware, using special ultraviolet pens or embossed labels. Allocate serial numbers to all of your hardware and keep a record of these numbers.
Secure data backup

While the theft of hardware is inconvenient, you can replace it. However, the loss of a PC or server also means you may have lost potentially critical business data. Therefore it is important to take security measures for both hardware and data, eg by backing the data up in a second location. Methods of backup include external hard drives, pen drives or memory sticks.
Power supply backup

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.