The IT infrastructure of organizations is becoming increasingly crucial to its success.
With an estimated global IT spending of $4.4 trillion in 2022, more businesses are investing in technologies and solutions to make their business operations more efficient, such as:
- Cloud services
- Outsourcing software licenses
- Artificial intelligence automation
To help reduce IT costs, organizations are applying these technologies and effective strategies to experience a cost reduction in IT. For more ways how to reduce IT costs, this blog will highlight the importance of cost savings and the way businesses can lower their IT costs.
The Importance of IT Cost Savings
IT cost reduction strategies allow businesses to cut costs, prioritize investments, and enhance their bottom line. Without IT cost reduction, many organizations would have to lay off employees or go out of business. To prevent such situations, businesses must improve cost optimization while reducing IT costs. Here are eight ways businesses are reducing IT costs today.
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1. Reduce Storage Complexity
Many businesses use a combination of on-premises, public, and private cloud storage to reduce the complexity and costs of data storage. Another way companies overcome this problem is by using a metadata engine to connect storage systems within a single global namespace. For non-virtualized entities, this is an ideal starting point for cost optimization.
2. Cut Software Licensing
Rather than have the flexibility to explore the best way to use IT assets, more than 55% of enterprise IT decision-makers have felt pressured to adopt a provider’s cloud strategy. While good technology partnerships are hard to come by, the real costs of maintaining some relationships can do more harm than good.
For instance, if a business uses a provider because they have the best product to meet that organization’s needs and that provider only supports transactional exchanges, then that business should consider a software asset management (SAM) tool for IT cost reduction.
Additional IT cost-saving ideas to keep in mind include:
- Cutting the number of licenses can lead to an IT cost reduction in maintenance
- Requesting an unlimited liability agreement in which software providers must take full responsibility for any damages that may occur to their scripts (providers run scripts on their client’s networks to detect software misuse)
3. Virtualize Databases
Achieving IT cost reduction through the virtualization of databases helps businesses save on storage by sharing their physical resources. Additionally, database virtualization can lead to improved process productivity and flexibility.
4. Reducing Personnel Costs
Over time, organizations can become top-heavy, leading to a suboptimal cost standpoint.
To address this, businesses sometimes have periodic reductions in staff roles – but these actions can possess serious consequences and create a great deal of angst within a company. Additional ways businesses approach this IT cost reduction include:
- Consuming less offshore resources than now
- Annually hiring, training, and retaining new college graduates
- Managing your contractors (some contracts are too expensive despite the convenience)
5. Leverage Open Source Software
Firefox, Linux, and Python are a few popular examples of open-source software businesses use to eliminate the initial costs of software acquisition. Additional criteria about open source software to know would be that because it’s not offered by a single company, software updates tend to occur more quickly while there are many support options should problems occur.
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6. Manage Cloud Costs
Saving money through cloud computing is one of the core advantages of the cloud, but it may come as a surprise to learn that companies are wasting about 35% of their cloud spending.
Among the leading contributors to this are:
- User errors
- Not enough visibility
- Overprovisioned cloud atmospheres
- Lack of oversight for monitoring the total cloud spend
7. Embrace IT Automation
An internal in-house team can be relieved through the policy-based automation of IT processes.
Additionally, when businesses automate their processes, they benefit from:
- Increase in profits
- Increased productivity
- Fewer errors which help reduce overall IT costs
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Reduce IT Costs Today with Power Consulting
Reducing IT costs requires businesses to employ cost reductions across their business.
From narrowing down what fixed costs ought to be to providing businesses with strategies that lead to a long-term cost reduction in IT, the team at Power Consulting can help you save money.
With more than 20 years of business experience across countless industries for small to large businesses, we’ve seen and know how to handle it all. With us in your corner, you’ll benefit from:
- A 40% to 55% reduction in IT issues
- A repair time that is 55% faster than leading competitors
- A 50% decrease in hardware-related problems and downtime
It’s time you took control of your infrastructure and IT costs today. For more information on how we can reduce IT costs for your business, contact us today.