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3 simple ways to cut down your IT costs?

By Sarika Vatner on 30/06/15 11:00 AM

We all want to think we have put in place the best practices to support our organisation but sometimes just because systems appear to be working on the outside, behind the scenes the story could be very different.

Running inefficient technology, can be extremely costly in the longer term and it can also have terminal follow on effects to your business should something go wrong. Even though some may try, it's not possible to cut down your IT costs by simply letting your IT get old.

Most businesses are oblivious to mounting technology debt as the problems associated with it don't suddenly appear, but creep up over time. So you need to look out for the telltale signs that those IT quick fixes are no longer working.

Here are 3 simple ways to cut down your IT costs:

1. Upgrade your aging hardware

While this might sound a bit contradictory, hear me out for a minute - if you’re still using a generation 1 Macintosh PC or a 10-year-old backup system, the chances are, you're spending too much money keeping it up and running. The older your hardware, the slower it is, the more likely it is to develop faults, and the less likely it is to run modern software efficiently (if at all).

Older hardware is also often less energy-efficient and this will drive up power bills. Old hardware is also costlier to fix, due to sourcing of end of life replacement parts (if you can get them at all).

This doesn’t mean you need to buy new hardware every single year — best practice of a 3 to 5 year refresh is still valid in this instance.

Don’t make the mistake of thinking “it’s still working, so I can keep it forever”. As we learned last year when Windows XP ended support, trying to keep old machines running forever can be frighently expensive.

2. Audit all software licences

In business we often see staff coming and going, it is a good idea to conduct an audit of your company’s software licences and work out whether you’re actually making use of all that software and not paying for licences you’re not using.

cut IT costsThis is just as relevant for companies now using methods such as software-as-a-service (SaaS), which typically charges on a per-user, per-month basis. Even though costs can be relatively low, it can still add up over long periods of time and the number of redundant licences you are hosting. Make sure your taking advantage of the SaaS advantage of scalability and pay only for what you use.

Through thorough auditing you may be able to increase profits my minimising costs and eliminating waste.

 3. Update aging software

Upgrading your business' software is more than just an economic business decision. It is a matter of security, productivity, lower costs, and employee morale. Typically more recent versions of software are safer from security standpoint. By minimising risk of downtime caused by security threats it is possible for companies to increase productivity and employee morale, who may become frustrated with constant breaches due to outdated software. If you want to know exactly how to calculate the cost of downtime for your business - you can access our easy to use online calculator.

 More cost benefits of upgraded software include:

  • More streamlined software increasing productivity.
  • Outdated software is expensive to maintain – Especially with SaaS such as Office 365 available today.

It’s not hard to cut the cost of technology. With small changes and modern technology, your business can start seeing cost savings today. Is your business spending money on outdated technology? 


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