BSPOKE Software | Digital Transformation Partners

Top tips to reduce IT infrastructure costs

With the challenges we’ve all faced in the past year, businesses are looking to save money in any way possible. For companies that are struggling to minimise their spending in certain areas, some aspects of IT infrastructure are considered to be a non-essential purchase that can be reduced. While it may be worth cutting costs in some areas, it’s important to consider where and when you reduce your spending. Cutting back on IT infrastructure that will help to expand your business and improve your customer experience is never a good idea. Today we’re going to share with you our top tips for reducing IT infrastructure costs, so you know how and where to cut back your spending.

Cut back on unnecessary services and spending

Many times, companies simply go with the products and services they are recommended. Until it’s time to cut back on some spending, they may not even take the time to assess what they are and aren’t using. If you are currently paying for services that you don’t use or need, this is a clear sign that there’s an opportunity to save in your business. When starting a new project, we recommend taking the time to decide what you do and don’t need. Of course, needs change throughout the year for companies, but by figuring out your overall goals and requirements, you can calculate how much you really need to spend on IT infrastructure.

For companies that are already expanding or planning to take on more work in the upcoming year, we always recommend using cloud computing. This will offer you unlimited storage and more resources without spending a fortune in the process. It can be adjusted to fit your requirements at the current time and work with you as your needs decrease or increase. More traditional IT infrastructure options are far more restricted, making them challenging for growing companies to use.

Look to make immediate savings

If your company is currently struggling to make ends meet, think short-term rather than long-term. Look for areas where you can make almost immediate savings that you’ll see within weeks or months, as opposed to years. If you can stop or eliminate bills that are paid monthly or quarterly, these are the first areas you should be looking at. While annual payments will also need to be reviewed further down the line, they won’t give you the immediate savings you may currently need.

Check your accounts and billing

Getting the best value for money is one thing, but you’ll also want to track your outgoings for IT infrastructure. Often, companies completely neglect to look at their bills after creating the initial contract, but this is where they are making their first big mistake. It’s impossible to keep track of where your money is going without constant monitoring. This will ensure you aren’t paying for items you don’t need and that you aren’t mistakenly being overcharged. Check your usage reports and set up a threshold where you’ll have to verify you are happy to spend over that limit. There are many great tools available today that make accounting and checking bills much simpler, so it’s well worth taking the time out to understand where your money is going.

Tackle discretionary spending first

The easiest places to cut back within companies is in the area of discretionary spending. Whether that’s new services or capabilities that are just nice to have rather than essential for your daily work, these are the areas you should be tackling first. Of course, there may be expenses you consider essential that could also be reviewed, but these are better looked at later on. This is a quick way to reduce IT infrastructure costs and turn around your budgets for the year.

Outsourcing IT services

Many companies have started outsourcing in the past year, and outsourcing either IT staff or services can dramatically reduce your infrastructure costs. A high percentage of companies already use this tactic and find it to be a convenient and cost-saving measure for their company. The tech industry is very familiar with this way of working, but it’s something other companies are also waking up to this year. Freelancers or agency staff can help to reduce infrastructure costs and also the associated hiring expenses.

Infrastructure components can be outsourced on a pay-per-use basis, which also may offer your business access to more advanced technology. Security, disaster, and backup recovery are some solutions that companies opt to use in this way. By paying on demand for technology that would be expensive to implement in house, you’ll find you save a good amount in comparison to what you would otherwise be spending.

Always opt for cloud-based solutions where possible

Within IT infrastructure solutions, the cloud is becoming the most popular route with companies at the moment. Thanks to its flexibility and scalability, it’s the ideal option for companies navigating these uncertain times. If you are unsure how much capacity you’ll need for the next year or two following the recent pandemic, you’ll be able to adjust what you are paying for to meet your current needs. This means you won’t be paying for something you don’t need, and at the same time, will be able to accommodate any future projects you hope to take on with ease.

Where to now

While reducing costs and cutting back spending can seem like a huge challenge for companies, it’s well worth it to secure your company’s future. We recommend taking the leap and assessing every aspect of your spending in one go instead of just making small adjustments. By doing one larger round of cutbacks, your team will be more accepting of the changes than lots of smaller adjustments over the upcoming years. These top tips will help guide you to reduce your IT infrastructure costs this year, and we highly recommend cloud-based solutions to help your changing needs. Whether you are expecting to expand or reduce your workload this year, a cloud-based solution can keep up with your changing demand without you having to spend more than necessary on your IT infrastructure.

Contact the folks at BSPOKE Software today!

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