4 ways to reduce your business IT costs

Technology plays a critical role in business. It makes sense that IT spending has steadily increased in recent years, reaching a solid 3,816 billion dollars spent in 2019.

But that doesn’t mean your IT costs have to keep soaring every year.

There are a few ways you can cut these costs to save money overall. Here’s how you can reduce those costs, starting today.

Consider migrating to the cloud

One way to save on hardware is to strategically migrate some of your applications and data to the cloud.

When you stop storing data in your office, you no longer have to buy additional hardware or pay for maintenance on your current storage hardware.

But does it really work?

A study of 1,300 companies found that 88% of cloud users experienced cost savings and 56% noted an increase in profits. It’s safe to say that there’s something to it.

If you want to know more about cloud computing, you can learn more about it here.

Get the IT equipment that’s right for you

Setting up the right hardware in the first place is an important step for saving money in IT. You want to make sure your hardware is not underpowered for your needs.

Keep in mind the “now” and the future — assuming you plan to grow your business.

At the same time, you don’t want it to be overpowered to the point where you’re paying extra supplementary hardware you don’t need to use. Make sure you’re only paying for the equipment you actually need for your day-to-day work.

The same goes for software. Take stock of the software you’re paying for, and stop renewing the licenses for any programs you no longer use.

Renegotiate third-party vendor contracts

Take a good, hard look at any contracts you have with vendors providing services for your business.

Just because a vendor was the best option a few years ago doesn’t mean it still is today. At least once a year, consider the quality of the services you’ve been paying for, and make sure you’re still satisfied.

You should also compare the price you’re paying with the rates for other vendors. In short, you might find better prices elsewhere. Consider combining a few services together from the same vendor to save money, too.

Hire an outsourced IT service provider

As you take these ideas into consideration, get familiar with another way to reduce IT costs: hiring a managed services provider that will offer you several IT services for one reasonable, flat-rate fee.

If you’re currently managing your own IT services on-site, you’ll need to pay for IT staff, servers, equipment, and the cost to maintain the equipment.

On the other hand, if you choose to outsource your IT services with a managed service provider (MSP), you’ll pay a flat-rate monthly fee. No hidden costs and no gray areas for who covers what.

For you, that translates to having an available team that will share their expert combined knowledge to support their clients’ technology requirements.

That’s great for everything from compliance to important day-to-day infrastructure modifications.

Talk to GB Tech

There’s lots of discussion around IT in general, and we’re here to answer any questions you might have. If you have any questions on technology, let us know – we’d love to write content to answer your questions.