How Much Does IT Actually Cost for a 10-Person Startup?

Nobody likes surprise costs, especially when you are trying to get a business off the ground. IT is one of those areas where founders either budget nothing (and get caught out later) or assume it will cost a fortune (and put off doing it properly). The reality is somewhere in between, and it is completely manageable once you know what to expect.

So let us break it down — real numbers, no fluff, for a 10-person startup in the UK.

The Short Answer

For a 10-person startup with solid IT foundations, expect to spend roughly £630-1,330 per month on ongoing costs, plus £1,000-3,000 in one-off setup costs to get everything configured properly.

That works out to about £63-133 per person per month, or roughly £750-1,600 per person per year.

The lower end gets you reliable basics. The upper end gets you enterprise-grade security, proactive monitoring, and dedicated support. Most startups we work with land somewhere in the middle — around £80-100 per user per month — and that gives them genuinely solid foundations.

Now let us look at where that money goes.

Software Licensing: Your Productivity Platform

This is the foundation everything else sits on — your email, file storage, video conferencing, and collaboration tools all in one subscription.

Microsoft 365 Business Premium — Around £20 per user per month, so £200/month for a 10-person team. This is the tier we recommend for most businesses because it includes not just the Office apps and email, but also Microsoft Intune (device management), Microsoft Defender for Business (endpoint security), and Azure Information Protection (data security). It is genuinely good value for what you get.

Google Workspace Business Plus — Around £15 per user per month, so £150/month for 10 people. Includes Gmail, Google Drive with 5TB storage, Google Meet, and some security features. A solid alternative, especially if your team prefers Google’s interface.

Why this matters: Getting the right Microsoft 365 tier from the start saves you money because many security features are bundled in rather than bought separately. Business Premium is more expensive than Basic or Standard, but the security tools included often eliminate the need for separate purchases.

Endpoint Security: Protection for Every Device

Endpoint security means protecting every laptop, desktop, and phone that connects to your company data. It goes beyond basic antivirus — modern endpoint security includes threat detection, behavioural analysis (spotting unusual activity), and centralised management so you can see all your devices in one dashboard.

Cost: £5-15 per user per month = £50-150/month for 10 people.

If you are on Microsoft 365 Business Premium, you already have Microsoft Defender for Business included, which covers the basics well. If you want something more robust, dedicated cybersecurity tools like CrowdStrike Falcon Go or SentinelOne sit at the higher end of this range and offer stronger detection capabilities.

The practical view: For most startups, the endpoint security bundled with Microsoft 365 Business Premium is a sensible starting point. You can always upgrade to a specialist tool later as your security needs grow.

Password Manager: Worth Every Penny

A business password manager lets your team generate and store unique passwords for every service they use, share credentials securely when needed, and eliminates the “everyone uses the same password” problem that plagues small businesses.

Cost: £3-8 per user per month = £30-80/month for 10 people.

1Password Teams sits at the higher end (around £6/user), Bitwarden Teams at the lower end (around £3/user). Both are excellent. This is one of those costs that feels small but prevents genuinely expensive problems — a single compromised account can cost thousands in downtime and remediation.

Cloud Backup: Your Safety Net

Your files and email are in the cloud, which is great, but the cloud provider’s built-in protections do not cover everything. They protect against their infrastructure failing, but not against accidental deletion, malicious insiders, or ransomware that encrypts your cloud data.

A third-party backup solution takes automatic copies of your email, OneDrive, SharePoint, and Teams data to a completely separate location. If anything goes wrong, you can restore individual files, entire mailboxes, or your complete data set.

Cost: £5-10 per user per month = £50-100/month for 10 people.

Services like Acronis, Veeam, Datto, or Backupify handle this. You set it up once and it runs automatically. Think of it as insurance — you hope you never need it, but if you do, it is priceless.

Managed IT Support: Someone in Your Corner

This is where you get an actual team of IT professionals looking after your technology on an ongoing basis. Managed IT support typically includes:

• Helpdesk support — Your team can call or email when something is not working, and someone knowledgeable picks it up quickly.
• Proactive monitoring — Your devices and cloud services are monitored for issues, often catching problems before your team even notices them.
• Patching and updates — Software updates and security patches are applied regularly so you do not have to think about it.
• Security management — Your security tools are configured, monitored, and kept up to date.
• Vendor management — Your IT provider deals with Microsoft, your internet provider, your phone system, and other technology vendors on your behalf. This alone saves founders hours every month.

Cost: £30-80 per user per month = £300-800/month for 10 people.

The range is wide because the level of service varies. At the lower end you get reactive helpdesk and basic monitoring. At the upper end you get proactive support, regular security reviews, strategic advice, and faster response times.

For a 10-person startup, a provider in the £40-60/user range typically gives you excellent value — responsive support, solid security management, and enough strategic input to keep you on the right track.

One-Off Setup Costs

Before the monthly costs kick in, there is usually a one-time setup fee to get everything configured properly:

Typical range: £1,000-3,000 depending on complexity. This usually covers:

• Setting up your Microsoft 365 or Google Workspace tenant
• Configuring security settings (MFA, conditional access, email filtering)
• Migrating data from personal accounts, previous providers, or local storage
• Setting up endpoint security on all devices
• Configuring backup
• Creating basic documentation and an IT welcome guide for your team

Some IT providers absorb this cost into a longer contract term. Others charge it upfront. Either way, it is a real cost that you should budget for — and it is money well spent because a properly configured environment causes far fewer issues down the line.

Optional Extras

These are not essential for every startup but worth knowing about:

• Cyber Essentials certification: £300-1,500 (one-off, renewed annually). A UK government-backed security certification that some enterprise clients and government contracts require. If you are selling to regulated industries, this can open doors.
• VPN or zero-trust access: £5-15 per user per month. Needed if you have on-premise servers or applications that are not in the cloud. Cloud-first businesses may not need this.
• Advanced email security: £3-5 per user per month. Extra filtering for phishing, impersonation attacks, and malicious attachments. Worth considering if your team handles sensitive financial or client data.

The Full Picture

Here is what a typical 10-person startup’s monthly IT budget looks like:

Category	Per User/Month	10-Person Team/Month
Microsoft 365 Business Premium	£20	£200
Endpoint security	£5-15	£50-150
Password manager	£3-8	£30-80
Cloud backup	£5-10	£50-100
Managed IT support	£30-80	£300-800
Total	£63-133	£630-1,330

Plus one-off setup: £1,000-3,000

The lower end gets you solid foundations — reliable email, basic security, backup, and reactive IT support. The upper end gets you enterprise-grade security, proactive monitoring, strategic advice, and faster response times. Most startups land somewhere in the middle, around £80-100 per user per month, and that gives them a setup they can be genuinely confident in.

How This Compares to Hiring

For context, a full-time IT manager in London costs £50,000-75,000 per year in salary alone (plus employer NI, pension, benefits, and training). That is £4,500-7,000 per month before they have bought any tools or software.

For a 10-person startup, outsourcing your IT to a managed provider gives you access to a whole team of specialists — helpdesk engineers, security experts, cloud architects — for a fraction of the cost of a single hire. As you grow towards 30-50 people, it starts to make sense to bring some IT capability in-house, but for the first few years, a good managed IT provider is almost always the smarter investment.

Budgeting Tips

A few practical things to keep in mind:

Start with the essentials and add over time. You do not need every tool on day one. Get your productivity platform, password manager, MFA, and basic security sorted first. Add the extras as your business grows and your needs become clearer.

Annual billing saves money. Most software vendors offer a discount (typically 10-20%) if you pay annually instead of monthly. If your cash flow allows it, this adds up over 10 users.

Ask about startup pricing. Many IT providers and software vendors offer discounted rates for businesses under 2 years old or under a certain size. It is always worth asking.

Budget for growth. If you are planning to hire, remember that each new person adds approximately £63-133 per month to your IT costs. Factor this into your hiring budget so there are no surprises.

Let Us Help You Budget

We work with startups and growing businesses across London, and we are always happy to give you an honest assessment of what your IT setup should cost. No hard sell — just a straightforward conversation about what you need and what it will cost.

Get in touch and we will put together a tailored estimate based on your actual situation. It takes about 15 minutes and you will walk away with a clear picture of your IT budget.