10 Smart Ways to Save on Your IT Expenses

Trim the fat, not the muscle.

That’s the snappy solution to saving on your IT – and we’re just getting started. Here’s the lowdown on how you can trim your expenses without removing IT entirely.

IT cost reduction strategies

If you want to shave your IT spending, you must adopt a strategic and systematic approach. Why? Because you want to keep your efficiency and security. So how can you do that?

Strategic IT expense reduction process

1. Assess your current expenses. Do a full audit of your IT costs, including hardware, software, subscriptions, maintenance, and staff costs. Check your invoices, accounting records, and use IT management tools.
2. Find redundancies and inefficiencies. Look for redundant software or services that can be combined. Pinpoint underutilised resources that can be repurposed. Check for unused licences and review your software licencing agreements.
3. Evaluate your IT infrastructure. This is the foundation of your IT ecosystem, including hardware, software, and networks. Which ones are meeting your needs? Which are costing you more than they need to? Would upgrading improve efficiency and save you money?
4. Get on the cloud and virtualise. With cloud computing, you can outsource your IT infrastructure and save on hardware, software, and maintenance costs. With virtualisation, you can run multiple operating systems on a single server, helping you save on hardware, software, and energy costs.
5. Get rid of unnecessary IT assets. Schedule time with your team to identify IT assets you no longer need or use (hardware, software licences, and cloud resources). You can use your IT cost audit, go through each item, and mark those you can bin or toss them outright.
6. Review your vendor contracts. Ensure you’re getting the best possible deals. Can you negotiate lower rates or better terms of service? Can you switch to a plan with more bang for your buck? Is there a provider that offers more value for your money?
7. Become energy efficient. You can lose money via energy drains. Upgrade to more energy-efficient hardware and implement power management policies across your business. Monitor your energy consumption and see if power bills go down.
8. Train your staff. Well-trained employees can help reduce IT costs by avoiding mistakes and using your resources more efficiently. Equip them on a variety of IT topics, such as automating low-value tasks for efficiency, using key security tools and measures, software usage, and troubleshooting.
9. Consider hiring an MSP. A managed service provider (MSP) can do your IT – from infrastructure management to software support and security. Hiring an MSP is like having your own IT department, without the cost of in-house IT staff and less the stress of managing them.
10. Invest in cost-effective cyber-security. This is essential for all businesses. While cyber-security solutions can be expensive, you can invest in security solutions that align with your business needs, fit your budget, AND save you money in the long run.

Now, for more on trimming the fat and not the muscle, let’s zoom in on those last two steps.

How an MSP can give you IT cost savings

You can actually tighten your belt without cutting off circulation. In fact, you could even become more efficient and save on costs when you hire an MSP.

Benefits of outsourcing IT services to MSPs

Besides being less expensive overall than an in-house IT team, hiring an MSP can enable you to:

• Harness more advanced IT skills and a broader expertise
• Get first dibs on new, emerging, or cutting-edge applications
• Access IT support 24/7, whenever you need them
• Build stronger cyber defences with multiple security measures
• Use scalable IT solutions as your business grows
• Have more flexibility with MSP service packages and prices
• Enjoy quality IT services at par with large businesses
• Have IT services tailored to your industry-specific needs

Cost advantages of MSPs over in-house IT departments

What makes an MSP less costly than in-house IT?

• They can get you better deals on hardware, software, and licencing fees.
• If they use pay-as-you-go pricing, you only have to pay for IT services you use.
• Hiring and training your own IT staff can be quite expensive.
• You can have a lower risk of downtime and faster disaster recovery.
• MSPs can boost your efficiency & productivity, giving you more value for money.
• Everything is generally cheaper than in-house due to efficiencies of scale.

Investing in cyber security costs less than not investing in it

By default, your business is highly vulnerable to attacks when you do not invest in cyber security solutions. Consider:

• The average cost of a data breach in Australia is up 32% in the last five years, breaching the $4-million mark per incident.
• The cost of a cyber-attack can include direct financial loss, ransom payment, reputational damage, diminished customer trust, legal expenses, repairs and data recovery, and related consequences.
• A recent survey found that 47% of respondents experienced at least one cyber-crime within the 12 months prior to the survey.

If you want reduced costs, you must invest in cyber-security. Otherwise, you are risking spending way more. Even if you have limited resources, you can still improve your security now:

• Start with the basics. Use antivirus software, implement strong password policies, and set up firewalls.
• Protect your most valuable assets first, such as customer data, financial information, and intellectual property.
• Outsource your cyber security to an MSP.

Be smart: Look at the long-term

If you’re serious about cutting IT costs, you must look beyond here and now. Saving money on IT is not just about slashing budgets, but spending the right amount on the right things that can produce the right results.

If you want to learn more about investing in technologies and solutions that will help you save money in the long-term, talk to a Lucid IT advisor today. To learn more about tech news and trends that can benefit your business, visit our blog for helpful articles.