Essential business principles dictate that decision-makers must cut costs to maximize profitability and invest in company growth. Eliminating wasteful spending and reducing overhead used to focus primarily on tangible infrastructure such as commercial property leases. These days, IT leaders generally agree that businesses can gain similar results by taking advantage of emerging technology.
"From our perspective, cost-cutting has not come directly into IT, but it has come in other areas through the implementation of better technology," Ilan Sredni, of Palindrome Consulting, reportedly said. "The pandemic brought about a relatively large need for a remote workforce. We now have people working from home who are no longer required to have office space. We have seen many clients move into shared office space or reduce their total overhead."
That's why Chief Financial Officers (CFOs) who are actively trimming the fat would be wise to consider whether these IT strategies can reduce infrastructure costs even further.
Conduct Thorough Technology Due Diligence
Managed IT leaders recognize that business operations and goals can differ in significant ways. Software and technology companies continue to bring products to market to meet niche demands. Guy Baroan, president of Baroan Technologies, takes a panoramic view of technological business needs. He advises organizations to consider having impartial third parties conduct thorough due diligence before investing in IT to eliminate unnecessary expenditures.
"Some areas for cost-cutting, where IT is concerned, falls in a few different areas of an organization," Baroan reportedly said. "The following is not a fit for all businesses. But for the most part, these three areas should be considered to see where costs can be reduced."
1: Inventory all the Current Subscriptions for Cloud-Based Services
When a complete inventory is done, an organization can then go through and decide what is being used now and what is not. Most of the time, organizations will be very surprised by how much they are spending on services someone signed up for and may no longer need.
2: Review All Internet-Related Costs
Many organizations have not reviewed their internet costs and are paying what they have been paying for many years. Most carriers do NOT proactively work with the clients to ensure that their services are the right services, and the pricing is adjusted to the current market costs. The companies may be paying 2x or more for their services because the agreements just renew for a new term at their old price.
3: Review Infrastructure Costs
If the organization is at a crossroads, and they need to decide whether to upgrade their server infrastructure, they may want to consider moving that to the Cloud. A local server infrastructure would end up requiring a higher upfront outlay of cash. This may help with cash flow and allow the organizations to add efficiencies while keeping the upfront costs to a minimum.
Managed IT experts typically agree with Baroan's assessment that increased Cloud migration delivers substantial infrastructure reduction and increased investment return.
Increase Cloud-Based Communication Systems
Managed IT experts such as TLC Tech owner Michael Nelson, SemTech IT Solutions director of information technology Nick Allo, and Atlantic-IT.net vice president of Krystal Triumph agree that leveraging the latest Cloud innovations can drive down wide-reaching infrastructure costs.
"I believe one of the best ways to save money is by moving more and more to the Cloud. This can be as simple as a web-based line of business applications, moving data to SharePoint, or setting up your infrastructure to Azure, AWS, or another cloud host," Nelson reportedly said. "A well-designed Cloud strategy can increase staff productivity, extend the distance you can hire, and provide a seamless work environment, no matter where your staff is located."
SemTech IT Solutions' Allo points out that too many companies are wedded to office-based communication infrastructure that has become outdated.
"We look at Cloud solutions where the hosted cost is similar to onsite or cheaper. For example, an onsite email server is $10k for a 10 person office plus maintenance and support. The annual cost for that same email through the cloud is $480/yr. There is no hardware to maintain or upgrade," Allo reportedly said. "The same is true for an onsite phone system vs VOIP, where the phones are the only cost."
Atlantic-IT's Triumph concurs that internal IT infrastructure must be closely examined. Technology largely rendered brick-and-mortar phone systems inefficient and overpriced. Triumph has an eye on next-generation technologies such as "Zero Client" devices.
"We have helped organizations reduce cost by implementing Zero Client computers, which save organizations from constantly replacing and upgrading computers. This has helped to offset the cost of the Cloud," Triumph reportedly said. "By companies moving to more Cloud-based solutions and virtual computers, organizations have better control over security, data management, and auditing."
Zero Client computers have no operating system (OS) or local storage, unlike many endpoint devices. These next-generation devices are streamlined, powerful, and help reduce infrastructure and spending.
Managed IT thought leaders continue to support client competitiveness through advice about emerging technologies. Implementing these and other IT strategies help organizations reduce infrastructure costs and gain a competitive edge.