Businesses are always looking at ways to reduce costs and looking at the IT budget line can cause headaches. So much money is spent in one area, and there is so little you can do about it! But is that really true? Your IT expenses may not be as fixed as you may think. Here are some 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 may be able to find cost savings:

• You may be able to change your subscription to a lower level.
• You may find that staff members have left for which you are still paying for their licensing. You may be able to reduce your licensing numbers.
• Pricing or the products may have changed. Look to see if there are any other products that may better suit your needs.
• There may be an open-source software alternative to save acquisition and maintenance costs. Beware with this option as training and support issues may increase the overall cost.

2. Hardware

Your current hardware may be underused or needs refreshing. Look for opportunities to run applications on less power hungry devices or look at virtualisting your servers. Standardizing platforms can also significantly reduce IT costs while providing consistency.

3. Cloud Computing

One way to cut hardware is to move to the cloud. You may be able to run your systems and software in the cloud for a fraction of the cost. Moving data backup to the cloud to replace an on-premises server can also cut costs. Also remember the power savings from not having a power hungry server located onsite.

Even if you are already in the cloud, you can see whether you are on the best available plan for you. Consider the following :

• Are you paying for more resources or storage than what you actually need?
• Are you taking full advantage of any upgrading and downgrading your services when staff come and go?
• Are you duplicating your on premise and cloud based services?

4. Internet Services

Your employees need to be online so you can’t just delete your internet services. However, you may be able to control costs:

Should you buy your modem / routers instead of renting them from your provider?

• Consider the internet speed in your plan. Do you still need that level of service?
• Is slow internet speed costing your company time and money? Will you be more efficient with an upgrade to a fast speed?
• Are you able to bundle your services to find potential cost savings?
• Are you in a position to renegotiate your plan with your provider?

5. IT Staffing

Avoid large expenses of onsite IT staff by outsourcing your resources. 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. Power Utilities

Don’t overlook the costs involved in powering all your IT equipment. Review your utility bills to identify any trends. Can you save money by turning off equipment? Is there a better plan available with a competing service or can 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 with an IT  audit.

Your IT needs and the technology is always changing. Many businesses purchase components or systems with “room to grow”, new tools get added as the need arises and your use of certain technologies may expand or shrink.

An IT audit can provide an overview of all the software and services you use and of bills related to your IT budget. This way you can find areas to streamline or cut out altogether. It may seem counterintuitive to spend 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 find new opportunities for consolidation.

We can help you meet your budget goals so contact us today at 08 8326 4364 or

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