Companies rely on computers and software programs, known as information technology (IT), to run their business. However, IT costs can take up a large part of a company’s budget. It is important to spend this money wisely to get good value.
Know What You Own
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The first step is getting a full picture of what technology you already have. This is called an IT asset inventory. Document all hardware, software licenses, cloud services, and other IT assets in use across the company. An IT audit or oracle license review by an outside expert, such as those at Miro Consulting, can uncover assets of which you were not aware. Consolidating assets into one complete list helps uncover opportunities to save.
Cut Down on Waste
With your IT inventory in hand, you can pinpoint areas of waste. For example, unused software subscriptions are a common money waster. If employees downloaded trial software that is no longer needed, cancel it. If certain features of programs go untouched, see if a lower tier of the same software, or an alternative, will do. Carefully reviewing software usage patterns enables cutting back spending without losing access to essential tools.
Align Software to Roles
Take stock of who is using which technology tools. Are the right people accessing the programs most helpful for their jobs? For example, graphic designers need different software than human resource staff. Ensure licenses are correctly distributed based on each worker’s function within the company. Misaligned access can lead to paying for capabilities that provide little value. Rethinking role-based access helps target spending.
Standardize Where Possible
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Supporting a diverse array of hardware, operating systems and software across an organization strains budgets. Try reducing variability where you can without hampering necessary capabilities. For example, choosing one or two computer models offered to employees, rather than many, simplifies maintenance and repairs. Likewise, reducing the portfolio of software that serves similar functions, where variety is unnecessary, leads to better deals through higher volume discounts. Standardization delivers economy.
The Cloud vs. On-Premises
Cloud computing provides flexible access to IT resources hosted on the internet with no need to maintain equipment on-site. Consider shifting on-premises servers, data centers and software platforms to the cloud. Benefits are consolidating assets into shared cloud services, avoiding large upfront capital costs, and shifting from fixed to variable “pay as you go” costs that flex with usage. The cloud enables better IT cost management.
Negotiate with Vendors
Do not simply accept sales quotes from incumbent software, hardware, and services vendors. Use the leverage of potential large purchases across extended agreement terms to demand better deals. Make vendors compete for your business. Be ready to switch to alternate solutions if significant discounts are not offered. Consider hiring expert consultants to assist with complex vendor negotiations. Their savings far outweigh their fees. Drive hard bargains to maximize value.
Keep Optimizing
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The IT landscape changes constantly. Continually monitor assets and usage, assess evolving needs, and realign investments. What made sense last year may now be obsolete or overkill. Adapt budgets based on the current environment rather than leaving allocations on autopilot. Appraise IT spending as part of yearly planning to fund what moves the organization forward today. Creative, informed IT investment powers competitive advantage.
Conclusion
Following the strategies above will help your company target its IT dollars where they will have the greatest impact. Adjusting spending to precisely deliver the right technological capabilities, while eliminating unused investments, enables doing more with less. A well-tuned IT budget aligns costs to business-driving value. Partner with expert advisers as needed to unlock savings that boost outcomes across the organization.
