6 Ways to Reduce Your IT Costs
Being frugal is just good business practice. It is sometimes difficult to see what is best to cut, and what is NOT!
It can feel as if so much money spent in one area, and there’s so little you can do about it! IT expenses may not be as fixed as you think. Take a look at these 6 ways you might reduce costs.
Time for a Technology Health Check
Ultimately, the best way to identify specific areas to cut your IT budget is an IT Health Check.
Your IT needs are always changing, and the technology evolves, too. Many businesses add expensive components or systems with “room to grow.” Your use of certain technologies may expand or shrink.
We have developed our own specific version of this. It covers 8 key areas in your business IT that need to be assessed.
- The service itself is quick and painless. (10 min per device)
- It gives a great visual report on all areas of risk.
- The report prioritises urgent, and non-urgent areas of risk so that you can budget ahead of time.
- We can point out ways to make your IT systems more efficient, both cost-wise and time-wise.
- We have completed quite a few of these recently and in some cases have saved the client up to $2-5K a year.
An IT expert can provide an overview of all the software and services you use. 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. If you would like to book a time with Andrew to see if this is something that might suit you – you can book a no-obligation online chat here.
Regardless, here are some great areas to take a better look at to see if you can cut some IT costs without putting your business at risk.
Your business likely pays a license software fee such as Microsoft Office 365 or Adobe Photoshop. By reviewing these software agreements, you can often find cost savings. Here are some great questions to investigate:
- Can you renegotiate a subscription onto to a new offering?
- Are you paying for software that your employees are no longer using?
- Is there a better plan option available for those subscriptions?
- Is there a freeware alternative?
We, for example, are making the most of our Microsoft Office 365 as it has lots of extra tools that come with our plan. We use Bookings tool instead of having to pay for Calendarley. Check it out here.
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. Are you;
- Paying for more storage or resources than you need?
- Taking full advantage of mobility and scalability features?
- 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:
- Are you in a position to renegotiate your plan?
- 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?
#5 IT Staff and Services
You can avoid infrastructure costs by hiring offsite IT staff by outsourcing. Often your business can pay a set monthly fee or go on a pay-per-use model. 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?
Proof is always in the pudding. If you would like to see some reviews of our work you can find them here.