If information technology costs are eating up a large portion of your company’s budget, then you are not alone. In fact, it is estimated that small businesses spend upwards of 7% of their revenue on IT costs. Yet, with IT playing such a critical role in ensuring a business’s productivity and security, it can be extremely difficult to find ways to control, or even lower, IT costs. However, you may be surprised to learn that there are simple, actionable steps that you can take to lower your company’s mounting IT costs.

Here is a look at 5 things that you can do now to reduce your business’s IT costs:

Virtualization

One method that can help you to see considerable IT cost savings is virtualization. Essentially, virtualization means replacing physical hardware with virtual alternatives. With virtualization, companies no longer need to depend entirely on physical servers, as they can combine many functions into a single server by switching functions to virtual environments. This can save money by reducing energy and hardware expenses.  

Optimize Infrastructure

It may surprise you to learn that structured cabling, wireless network layouts, and other infrastructure can actually cost you money if they are not configured properly. However, when infrastructure is improperly configured, this can result in decreased productivity and increased electrical costs, which can add up greatly over time. Making sure that these systems are configured with efficiency in mind is critical in order to keep costs down.  

Backup Data Regularly

While backing up data may not be something that would save you money in the short-term, it can mean exponential savings in the long-run. Proper data backup is a critical IT cost reduction strategy, as it can help to protect you from substantial losses in the event that a cyber attack or natural disaster results in data loss. Without the proper system backups, productivity would come to a grinding halt, and you would have to spend money trying to retrieve lost data. However, when you properly backup data regularly, both to physical and cloud-based backups, you can rest easy knowing that your business will be able to get back up on its feet quickly after a disaster.  

Vendor Management

Hardware and software purchases can quickly eat up a huge chunk of your company’s budget. Whether it’s buying brand new computers for your office, or a company license to upgrade your company computers to Windows 10, IT hardware and software often isn’t a cheap investment. This is why it is recommended that you work with a company that offers IT vendor management services. These companies can help you to find the hardware and software that you need at exclusive prices that you would not be able to find on your own, helping to save you money. 

5. Streamline Costs With Managed IT Services

Of course, one of the best ways to reduce IT costs would be to outsource your IT needs to a Managed Service Provider (MSP). For small to medium-sized businesses, it often isn’t feasible to maintain an in-house IT staff. In these instances, companies often find it within their best interest to partner with an MSP who can provide contracted IT services on an as-needed basis. This can drastically reduce IT costs as you will only be paying for the services that you need as you need them versus paying full-time staff. Not only can outsourcing save you money, but you will also gain access to superior IT services as MSPs have greater resources to research and implement the latest IT technology.

While mounting IT costs can seem like an unfixable problem for many businesses, there are steps that you can take to greatly reduce IT expenses.

Contact us to learn more about the steps that you can take to save money on IT costs at your company.

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