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Top 5 ways to reduce your IT spending

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Top 5 ways to reduce your IT spending

Some big companies spend billions of dollars a year on IT spending. The amount includes the cost for data centers, networks, applications, upgrades, system integrators, consultants, as well as human resources to manage the technologies and systems.

But guess what? You don’t have to spend too much on information technology. Here are some tips for saving on IT costs.

  1. Embrace cloud computing.

One of the many benefits of adopting the cloud is cost saving. With Software as a Service (SaaS) model, you save money on data center, storage, as well as upgrade costs. There are a few SaaS vendors that offer a broad range of functionalities.

A market leader in delivering best-of-breed solutions, Oracle offers a comprehensive range of enterprise solutions in the cloud. The suite offerings include enterprise resource management, human capital management, customer relationship management, and marketing solutions, among others.

Oracle started re-architecting their applications ten years ago and optimized them for the cloud. As such, the cost was reduced. And since the codes are modular, it is easier for organizations to add functionalities when the need arises.

  1. Outsource your entire data center.

Consider hiring a hosting company that can deliver a better but cheaper service than having many stacks of servers on premise. Outsourcing offers the best of both worlds – huge savings on hardware and human resources costs, and less worries for not having to manage the data center yourself.

  1. Challenge your System Integrators (SI) and partners.

Some traditional SI partners will try to prolong project implementation and make the deployment more complex. This approach means more revenue for them. You certainly don’t want this scenario for your company. Your partner will promise they will deploy the applications and deliver the best. Question their approach and strategy. Work with partners that delivers fixed price, fixed work scope, and high-quality offerings.

  1. Leverage on modern technology to communicate with your consultants.

Consultant travels eat up a huge chunk of your IT budget. Instead of having them travel a lot, consider activities that can be conducted via tele/video conferencing such as Skype.

The SaaS model also provides the best option for reducing consulting costs. This is because in the SaaS environment, the vendor provisions the cloud instance on day one. This approach enables faster rolling out of new capabilities. Complexities are completely out of the picture.

  1. Regularly maintain your servers and computers.

Some companies consider maintenance as an additional expense when in fact it’s an investment. Proper maintenance can increase the lifespan of your servers and computers. Not to mention that regular maintenance and updates keep your IT infrastructure secure.

 

For many organizations, technology costs are way too expensive. During these tough economic times, most companies are looking for ways to cut back on costs before they can say “business as usual”. Through proper planning and working with the right partner, your IT cost does not have to cripple your company budget.

Contact Four Cornerstone now to find out how you can lower your IT costs. Our Oracle Consulting in Dallas Fort Worth will share their expertise and ideas for cost savings that can yield real results.

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