Red scissors cutting money to signify cut IT costs.

How to Cut IT Costs

Technology plays a critical role in business. It makes sense that IT spending has steadily increased in recent years. In particular, Gartner has predicted it will increase by 3% by 2020, and it’s likely only going up from there.

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

There are a few ways you can cut IT costs to save money overall. Here are some examples of how to get started reducing your IT spending.

Get the Right Equipment

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.

Related: Why Switch Your IT to Managed Services

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 operations.

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.

Move 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.

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That’s why one study found that 88 percent of the businesses surveyed saved money — and 56% even boosted profits — after they moved to the cloud.

Renegotiate Third-Party Vendor Contracts

Take a 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.

Use Virtualized Infrastructures

Another way to cut IT costs is to switch to virtualized infrastructures. This means running your software from different physical infrastructures rather than paying to run it all from your own.

Related: 3 Reasons Why You Shouldn’t Buy That Server

Virtualizing infrastructures allows businesses to access enterprise-level technology without first having to spend money on the software licenses, hardware and upkeep. So if you’re trying to cut IT costs without losing access to the programs you need, this is another option to consider.

Reduce Personnel Costs

You need people to effectively use the technology that makes your business successful, so it makes sense to focus on staff as a way to reduce IT costs. First, note that reducing your turnover rate is important, because hiring new employees is expensive. You can do this by making sure your staff feels appreciated and important within the company.

Related: Mom and Dad’s Business “Tech” vs. Professional Services

Another way to cut IT costs? Recruit talented recent graduates from local colleges to fill your entry-level positions. You might even consider hiring interns who you can train (and eventually promote) from within once they graduate.

Hire a Managed Services 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.

We’ll help you every step of the way as you balance business operations with money-saving strategies related to IT.

Contact us today to find out how our customized solutions can help your business save money on IT expenses.