Reduce Waste With These IT Cost Reduction Strategies
Technology and telecommunications are so important to businesses that it is easy to be overwhelmed by costs and the complexity of interconnected systems. Even simplicity doesn’t seem simple when small businesses are forced to make split decisions about technology as they expand and grow. When the time comes to cut costs and streamline expenses, how do you know what to prioritize?
The truth is, IT costs are one area where even a rudimentary audit can uncover inefficiencies and unnecessary costs for a small business. This blog will have you take an honest look at your IT costs so you can get rid of the bloat, eliminate waste, and enjoy an IT system that is streamlined, efficient, and entirely adequate for your needs.
Before we start saving, here are some important points to consider:
There is no magic bullet
One area of overspending will most likely not have much of an impact, but ten will. Also, once found, the changes made need to be permanent, and procedures should be put in place to prevent cost overruns like them from happening again.
Adjust reductions for the least disruption
When cutting expenses, consider the impact the cuts make because the degree of disruption is proportional to the cuts made. Sometimes it is better to phase out costly applications or functions instead of cutting immediately and drastically.
Are You Paying Too Much for Internet Access?
Small businesses rely on the internet, but depending on the connection and features, many are overpaying. The best way to determine this is by looking at internet speeds:
15-25 Mbps – Best for web browsing, checking email, sharing and storing small files
25-50 Mbps – Sharing large files, video conferencing, point of sale software, supporting a small number of remote employees
50-75 Mbps – Larger groups of remote workers, sharing large files, automated cloud backups
75-100 Mbps – Web hosting, eCommerce
100-150 Mbps – Streaming, downloading, and uploading files to cloud servers
150-500 Mbps – multiple eCommerce sites
It pays to plan ahead, but this is a simple way to cut costs if you are overpaying for speeds and features your business doesn’t use and never will need.
Cut Licensing Costs
When you agree to software licensing, you pay to gain access to a vendors’ products. But as a consumer, you should always remember that the vendors have other motives; most notably, they want to sell you upgrades and add-ons to their software. It makes sense on their end to sell more features and products to an already paying customer, but on the consumer end, it is easy to find yourself overextended. This is one area where vendor management tools can pay off, especially as your enterprise grows.
Manage Cloud Resources
One of the great advantages of cloud computing is scalability. Control over capacity allows you to ramp up resources during busy times and scale back to save costs when additional capacity isn’t needed. Without the right controls and visibility, you run into a situation where resources are scaled up and forgotten about. There are management tools you can use to stop this from happening, but there is no substitute for active management.
Align IT Expenses with Business Goals
It is important to look at the larger picture, especially when it comes to technology. Companies that look to reduce costs in the short-term should look for any IT-related activities that are geared toward long-term outcomes. Any technology that is deemed essential should be supporting immediate, mission-critical goals.
A Telecommunications Audit from RealCom Uncovers All Inefficiencies
We begin all engagements with a telecommunications and technology audit that includes a physical site survey. Our experts specialize in identifying opportunities to start saving money from day one by eliminating redundant resources, consolidating software, and streamlining solutions. Once you’ve decided on the right package for your needs, our project management specialists can oversee every aspect of project planning, installation, and deployment.
Learn more about how RealCom can provide you with real IT solutions, so spiraling IT costs are never a concern again.
