Your business is always looking to reduce costs. Looking at the information technology budget line items is headache-inducing. So much money spent in one area, and there’s so little you can do about it! But is that really true? IT expenses may not be as fixed as you think, as your decisions can save you money. Take a look at these target areas where you might reduce costs.
Try To Reduce Costs Without Losing Value
Looking at your information technology budget is stressful for a lot of owners. So much money spent in one area, and there’s so little you can do about it! But is that true?
IT expenses may not be as fixed as you think.
Your business likely pays to license software such as Microsoft Office 365 or Adobe Photoshop. Reviewing these software agreements, you can often find cost savings:
- See if you can renegotiate a subscription if the provider wants to move you onto a new offering.
- Are you paying for software that isn’t in use? Try to see if you can reduce or remove it.
- Has the pricing has changed? Are there now better plan options available?
- There may be an open-source software alternative to save acquisition and maintenance costs.
Your current hardware may be underused, need refreshing, or have lost productivity. Find ways to run applications on less expensive devices. One way to do this is by linking together several computers to replace expensive server equipment. Standardizing platforms can also significantly reduce IT costs while providing consistency.
3. Cloud Computing
One way to cut IT infrastructure costs is to move to the cloud. You can run software on the cloud for a fraction of the cost. Moving data backup to the cloud to replace an on-premises server can also cut costs. Rather than losing all your data on a singular device, it can be stored in one location in the cloud.
Even if you’re already in the cloud, you can explore whether you are on the best available plan for you and consider:
- Are you paying for more storage or resources than you need?
- Are you taking full advantage of mobility and scalability features?
- Are you duplicating on-premise and cloud-based services?
4. Internet Services
Your employees need to be online. You’re not going to cut out internet services. However, you may be able to control costs:
Should you buy modems or routers instead of renting them from your provider?
- Consider the internet speed in your plan. Do you need that level of service?
- Is slow internet speed costing your company money when, in fact, you’ll be more efficient with an upgrade?
- Are you able to bundle services to find cost savings?
- Are you in a position to renegotiate your plan?
5. IT Staff and Services
Avoid infrastructure costs and the hiring expenses of onsite IT staff by outsourcing. Chances are, you’re probably not an expert in IT. Managed Services Providers (MSPs) end up saving you money in the long-term by taking care of your IT. Often your business can pay a set monthly fee or go on a pay-per-use model to gain services such as:
- IT help desk support
- Disaster recovery
Don’t overlook the costs involved in powering your IT components. Review your utility bills to identify trends. Can you save money by turning off equipment? Is there a better plan available with a competing service? Should you renegotiate the terms of your existing plan?
Time for a Technology Audit
The best way to identify specific areas to cut your IT budget is a technology audit.
Your IT needs are always changing, and the technology does too. Many businesses add expensive components or systems with “room to grow.” New tools get added on as needs arise. Your use of certain technologies can fluctuate.
An IT expert can be your best case of action.
They can provide you all the software and services you use, and bills related to your IT budget to find areas to streamline or cut altogether. It may seem counterintuitive to pay money in an attempt to save money. However, an outsider’s perspective can provide fresh insight into the “way things have always been done” and help you see new opportunities for consolidation.
We can help you meet your budget goals. Contact us today at (800) 297-8293!