6 Target Areas to Reduce IT Costs

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. Take a look at these
target areas where you might reduce costs.

#1 Software

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:

  • You may be able to renegotiate a subscription if the
    provider wants to move you onto to a new offering.
  • You may find that you are paying for software that
    your employees are no longer using much. Maybe you can reduce or remove it.
  • Perhaps the pricing has changed, and there are now
    better plan options available.
  • There may be an open-source software alternative to
    save acquisition and maintenance costs.

#2 Hardware

Your current hardware may be underused, need refreshing, or have lost
productivity. Look for opportunities to run applications on less expensive
devices, or link 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 may
be able to 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, not to
mention the utility savings from not having to power the replaced components.

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
  • Are you taking full advantage of mobility and
    scalability features?
  • Are you duplicating on-premise and cloud-based

#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

  • 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

Avoid infrastructure costs and the hiring expenses of onsite IT staff
by outsourcing. 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
  • security
  • disaster recovery
  • backup

#6 Utilities

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

Ultimately, 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 evolves, 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 may expand
or shrink.

An IT expert can provide an overview of all the software and services
you use, and of 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

We can help you meet your budget goals. Contact us today at 01297 306356!

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