To have a successful business, companies must weigh the costs of investments against the value they will provide. And a large piece of this puzzle comes down to technology. Nearly all businesses use some form of technology and automation. And many companies think of technology as a significant investment— after all, many tech solutions come with a hefty price tag. However, there are ways to reduce technology costs, which is what we are going to discuss in this blog.
Cutting Costs With Technology
When organizations strategically plan the use of their technology, they can save both money and time. However, many companies don’t realize how to do this. We are going to walk through a few ways to help reduce costs by taking a closer look at your technology environment and solutions.
One of the first and easiest steps a business can take to reduce their costs when it comes to technology is to consolidate products. Many organizations use multiple tech solutions. Some companies may have overlapping products from popular collaborative tools like Slack and Google Drive to cloud products like Box and Office 365.
So, take a step back. Look at the high-level needs of your organization. Then determine what products your company is using and if that is the preferred solution. If your finance department is using Slack, but you also use Office 365 as a company, do you need to be paying for Slack? Or could you save money by having the entire company transition to Microsoft Teams through your Office 365 suite?
It’s all about realizing what you have, what you need, what products make the most sense for your organization, and then consolidating. Not only will this help you save money by getting rid of solutions you don’t need, but it can also help increase efficiency. If departments across your organization are using a mix of three different collaboration tools, it becomes a question of which platform has a certain file or chat. However, when you consolidate to one solution, everything is in one place, and no one has to go searching.
Create a Roadmap
Another tactic that will help you save on technology costs comes down to basic planning. Success is all about planning for the future, but some companies forget to do this when it comes to technology. However, now more than ever, it’s crucial to create a roadmap.
By sitting down and writing out your strategic goals for the year, you can determine what technology will help you get there. Analyze your vision for the future and where there might be gaps in your technology that will prevent you from reaching those goals.
This way, you can ensure you are investing in the proper technology for your specific needs. You’ll avoid overinvesting in things you don’t need, as well as underinvesting in other areas that will lead to greater expenses down the line.
It’s all about being strategic with your technology. Make sure you have the proper solutions to get your business where you want it to be. Then, as you continue to grow and expand, continually re-evaluate and make sure the products you have in place are still needed and there isn’t anything you are missing.
Think About The Cloud
One large technology expenditure many organizations face is hardware. Items like new servers are a significant investment and typically have to be replaced every 3-5 years. It’s time to ask yourself whether you actually need that new server, or if it’s time to look into the cloud.
As the cloud continues to expand, many companies are forgoing the repeated costs of new hardware and are instead investing in the cloud. The cloud can be a great solution because it offers the ability to grow into your spend. When you buy hardware, what you’ve got is what you’ve got. You have to work within the limits of the servers you have. Or you need to make another expensive hardware purchase. However, the cloud is adaptable. You can scale up or down instantaneously, and you only pay for what you use.
On top of that, the cloud offers the flexibility of remote work. With on-site hardware, you have to build out the infrastructure for employees to connect to the office remotely. However, with the cloud, that’s already done. Staff can connect to the resources they need from anywhere. There are fewer hoops to jump through, which reduces employee frustration while increasing efficiency.
Work With a Technology Consultant or Provider
Another seemingly expensive cost that can actually save your organization money is working with a consultant or IT provider. Many companies avoid this because their technology appears to be working fine. However, consultants don’t just fix your technology. They are there to help create a strategic and agile technology environment that will help your business grow.
They can advise you on things like consolidating your software or moving to the cloud. They’ll help you determine if it’s the right decision for your unique business. We often emphasize the benefits of the cloud, but the caveat is that a cloud migration has to be done properly to receive those benefits. Far too often, a company will move to the cloud without first strategically creating a plan and then give up because they don’t see the advantages they were expecting.
With a consultant or provider, they can help you determine what systems will work best in the cloud, how to move them, and more. Large projects like these need to be carried out appropriately or it might not be worth it. Maximize your technology investments by finding a trusted advisor who has the knowledge and expertise to help you. They can look at your entire technology footprint, help you cut out excess spending, and create a system that truly supports every aspect of your business.
Invest in Security
Many businesses look at cybersecurity as an expense. However, we like to think of security as more of an insurance policy. It’s a risk management game, and we don’t recommend living on the edge. The truth is that small investments in security upfront can save you from much higher costs down the line if hackers breach your systems.
Security is an investment, but for the vast majority of companies, it doesn’t have to be a huge monetary cost. Instead, it’s about finding the low-hanging fruit. You don’t have to boil the ocean; just put a few affordable, key solutions in place. Products such as anti-virus, anti-malware, and VPNs are extremely valuable but don’t have to break the bank. On top of that, it’s about taking the effort to create policies and guidelines — such as BYOD, data, internet usage, and identity management policies.
With cybersecurity, you can always be “more secure.” However, this will come at a price. So, it’s all about risk mitigation and understanding the value of your security investments.
There are ways to save money on technology. Learn to look at what solutions you are currently using and decide if they are needed. Are they the right solutions for your business? And then determine if you are missing anything. By investing in the appropriate areas for your business, you’ll be able to cut costs and improve efficiency.