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6 Target Areas to Reduce IT Costs

July 7, 2020 by Paul Schwegler

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 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. 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 consolidation.

We can help you meet your budget goals. Contact us today at (515)422-1995!

Filed Under: Business, Maintenance, Tips Tagged With: business, hardware, IT costs, Software, Utilities

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Improve Your IT Cashflow

May 5, 2020 by Paul Schwegler

The economy is one more victim of the COVID-19 coronavirus. The global lockdown has many businesses feeling the pain. As finances grow tighter, business leaders are looking to improve cashflow. These key areas can help IT curtail spending.

First, take a look at the way you’re working now. Chances are it’s changed. If users are working from home, you may have migrated business applications to the cloud. This offers opportunities to reduce costs:

  • You may no longer need licenses that your on-site server isn’t using.
  • There may be overlap now with the new cloud-based solutions and your old software.

By auditing your software usage and revisiting your license fees, you can identify savings. You may also have had to let people go. That means the computer systems they used no longer need active software licenses.

Cloud-based Savings

If you haven’t already done so, moving business applications online offers benefits. You can offer users access to a Microsoft Office package in Microsoft 365, or a similar setup in Google’s G-Suite, all for a small monthly fee. Your employees get to use the most up-to-date software, wherever they are, and you save money.

You might also take voice calling online. With Voice over Internet Protocol (VoIP) communications, you add features and greater mobility. VoIP can offer call recording, voicemail to email transcription, and more. Plus, packaging communications and cloud collaboration tools can lead to big savings, quickly.

Additionally, cloud-based voice, storage, and software solutions eliminate infrastructure maintenance and monitoring costs, and you pay only for the capacity you need. It helps that it’s easy to scale up or down to keep control of costs while business continues uninterrupted.

Rethink Your Partnerships

A vendor audit can help you identify where you are overspending. You may have contracts for phone, internet, software, storage and backup, and IT Help. Reviewing these arrangements, you may be able to find a new deal.

Better yet, work with a managed service provider (MSP). An MSP will review existing relationships to determine where solutions could be streamlined. Or the MSP may be able to get you a deal due to pre-existing relationships with vendors.

A great MSP will help identify the best IT strategies for your business – it’s an investment that pays off. Technology failures are costly, and having managed services experts monitoring your business IT works to prevent problems. The MSP’s security and disaster recovery methods can protect your business from a devastating breach.

It sounds counter-intuitive to add another expense, but a small amount monthly can prevent expensive blowouts that you may not recover from. The MSP fee means ongoing access to IT experts recommending technologies to meet specific business needs.

Keeping cash flow under control requires smart spending. You’re also looking for return on your investment in technology maintenance and upkeep. Hiring an MSP can make a big difference. The MSP prompts IT modernizations based on your objectives to enhance work processes and improve productivity.

Do more than survive the current downturn. With an MSP in your corner, you can cut costs and emerge from the “Great Lockdown” a leaner, more agile business. Contact our experts to upgrade your technology and corral costs today! Call us at (515)422-1995.

Filed Under: Business, Tips Tagged With: business, Coronavirus, COVID-19, IT costs

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