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10 Great Ideas For How To Save Money On IT Spending And Reduce IT Costs

This article is for anyone trying to save costs on their information technology spending. Whether you are at a small company or a large multi-national corporation and and IT manager or the CEO. IT budgets are usually fixed and  IT managers are often asked to reduce their spending to lower company costs or to make room for special IT projects.  Below is a list of 10 of the best IT cost reduction ideas. Want to discuss some ideas with one of our experts? Click here

 

1. Consolidate Systems & Solutions

By consolidation multiple and/or legacy systems into one modern platform you can save money by reducing the amount of resources spent supporting multiple platforms and maintaining your knowledge of all the various platforms. In addition, by removing legacy systems you will often see a significant decrease in repair costs as typically new platforms are easier and less time consuming to repair than legacy systems. 

Source: http://www.mediaspectrum.net/reduce-it-spending-trends-7-steps/

 

 

 

2. Move From Traditional Phone Lines To SIP Technology

On average analog lines are normal $38.00 per line vs mid-twenties for SIP channels. That is savings of around 35%. In addition, with SIP channels you can often get better long distance rates. With some phone systems, you can configure them in a way that calling between your own offices occur over your network and therefore, do not cost you anything additional, no matter where in the world your offices are. We have seen even small sized organizations be able to save thousands of dollars per month by implementing SIP technology. To discuss this with one of our experts in more detail click here

Source: 

http://www.phonesuite.com/resources/bid/353786/SIP-vs-Traditional-Analog-Trunking-Pros-Cons

http://www.oracle.com/us/industries/communications/building-business-case-sip-wp-2084771.pdf

 

 

 

3. Implement Server Virtualization & Consolidation

A great way to reduce IT expenses is to reduce the number of servers your organization maintains through a combination of server consolidation and server virtualization. By doing this, you will reduce costs of maintenance, management, power usage and increase your hardware utilization. The first step to this process is to identify all the servers the organization has and where they are located. Then review which are underutilized and can be consolidated or placed on the same machine using server virtualization. 

Sources: 

http://www.mediaspectrum.net/reduce-it-spending-trends-7-steps/

http://www.riverbed.com/lg/resource/WhitePaper-Riverbed-SixWaystoReduceITSpending.pdf

http://www.computerweekly.com/feature/Balancing-IT-costs-during-a-recession

 

 

4. Bundle Your Internet & Phone Service Under One Supplier

From working with our clients, we have seen that almost always there is a decent amount of savings that can be gained by combining the businesses internet and phone service under one supplier. By going through this process, the supplier will often be able to provide lower pricing because of the bigger order and also be able to find synergies between the services to reduce costs. For example, often a company can reduce telco costs and increase connectivity bandwidth by placing SIP channels on a portion of their data connection. This is only available if both phone and internet are provided by the same supplier that has the capability to do this. To learn more about this concept, give us a call

 

 

5. Implement Bring Your Own Device (BYOD)

Implementing a BYOD policy at your organization can have a great positive impact on your IT costs simply by not needing to fund the purchase of new mobile devices. 

One thing to keep in mind is that you will need to weight these savings against the costs of the extra support time required to manage a very wide range of device makes and models, versus a smaller breadth of makes and models if you were providing all devices. 

Source: http://www.ipanematech.com/en/solutions/use-cases/reduce-it-spending/

 

6. A Stricter Virus Protection Policy

Getting a virus on any device is costly. There is the costs of getting it fixed or replacing the device, the time to fix the device, the cost of the lost files and work, the opportunity cost of a potential lost client or business deal, the cost of a temporary device and the inefficiency of that employee until their device is fully restored. If on the other hand you can reduce the occurrences of viruses by placing stricter policies on your users to reduce the risk of obtaining viruses it can have significant savings. 

Source: 

http://www.techadvisory.org/2013/04/5-ways-to-reduce-it-spending/

http://financesonline.com/6-major-costs-of-a-virus-attack-on-your-computer-and-how-to/

 

 

7. Create Self Help Resources For The Most Common User Issues

Calling a help desk costs about 10 times as much as having a staff member troubleshoot an issue on their own. There are great savings to be had if you can simplify some of the most common issues your users encounter and provide resources for them to solve the issue on their own. Probably the best way to execute this is to create screencast videos the employee can watch, showing them step by step and telling them what they need to do. 

Source: http://www.zdnet.com/article/can-you-really-cut-25-per-cent-from-your-it-spending-in-just-10-steps/

 

 

8. Encourage Employees To Place Calls Using Skype Or Other Free Apps

If your employees use Skype or other free calling applications it can significantly reduce telephone long distance and cell phone plan costs. This may even allow you to reduce the number of phone lines you need for your organization and/or reduce the cell phone plans of some of your employees. To have this be effective though you will need to create a culture of using Skype first, which will require constant reinforcement. Effectively implemented though it can lead to significant savings. 

Source: http://www.thesimpledollar.com/21-ways-to-reduce-your-spending-without-making-your-life-miserable/

 

 

9. Move Users To Linux

According to this study, you can reduce your costs per user by 26-36% by moving them to Linux. That being said you may not want to move your entire organization over to Linux cold turkey. What we would recommend is that you identify the users with the simplest requirements and those that don't use windows exclusive applications, transitioning a small pilot group of users. By taking this approach, you can test if Linux can meet your users needs, gain experience with Linux and track to see if it does, in fact, save your organization money. If the test group is successful you can then move over more users for even greater savings. 

Sources: 

http://lwn.net/lwn/images/pdf/cybersource-tco-study.pdf

http://www.michaelhorowitz.com/Linux.vs.Windows.html

 

 

10. Eliminate The Projects That Have Low Ease Of Implementation & Business Criticality

A fast way to reduce IT spending is to cut projects on your list that are at the bottom of the list. By simply completely removing projects or delaying them you can reduce your IT spending significantly. When looking to reduce IT expenses you should always look to cut a project or two. In general, the best way to determine which projects to cut are the ones that are hard to implement and have low business criticality, as they will save you the most and have the smallest negative impact on your business when they are cut. To conduct this analysis create a chart similar to the below to aid in your decision making. 

 

Reduce IT Spending

Source: http://www.bain.com/publications/articles/how-to-make-it-spending-more-effective.aspx

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