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Reducing IT Spending: Points to Consider

By CIOReview | Tuesday, September 27, 2016

Today’s business environment need efficient and agile IT infrastructure that meets varying demands in real-time.But businesses deal with the ever-increasing computing demands as they strive to keep IT spending in check. Below we look at methodologies and practices that can help them in reducing IT expenditure.

Hardware rationalizing works as a first step in helping with the inventory and asset management along with providing a clear picture of working efficiency of machines. Rationalizing helps in reducing energy, maintenance, and support costs. Gartner report on data center outlines the fact that hardware rationalizing projects reduce hardware cost up to 5-10 percent.

All components involved in IT infrastructure needs to be re-examined along with the expenses company making for them. A large share of expenses is spent on networks, mainly telecom services. Businesses can review and renegotiate the current contracts to get best service plans in the market and trim down unnecessary costs. Organizations need to deploy wireless systems instead of wired LAN because wireless LAN is easily manageable without any physical effort to move physical cables. The cost of the workforce needed to be managed and IT managers will have to review the way the company is allocating high-priced labor. Infrastructure cost can be trimmed down by implementing practices defined by Information Technology Infrastructure Library (ITIL) without impacting quality and service management.

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Consolidating data center sites is another way of cost cutting process. It helps in clearing unnecessary IT assets, disaster recovery contracts, software, and maintenance and support. Consolidated data centers along with the standardization will help in reducing IT infrastructure cost and get the most out of the latest technologies and sourcing options. Lesser number of data centers enables more efficient and effective operations.

Hardware virtualization helps in improving operational efficiency and it also supports decommissioning, consolidation, and other cost management programs. Virtualization assists in reducing the number of hardware systems, which deducts operational costs and provides cheaper maintenance and support. Virtualization effectively uses technology to reduce server energy consumption, which further results in controlling energy costs.

Reducing power and cooling equipment needs of the data center saves wastage of energy. Atmospheric components such as rainwater and air can be used as a natural cooling option for the data centers. The company can implement a modular cooling design for the construction of new data centers. Reducing the speed of fans used for cooling servers will help in saving electricity. Businesses can reduce infrastructure cost by implementing latest energy-efficient approaches that require less cooling and space for the data center designs.

Implementing IT asset management tools into company infrastructure is also a well-built option for cost reduction. Tracking and analyzing company assets provides an additional opportunity to cut down IT infrastructure cost. Instead of buying new assets, IT managers can negotiate with current service providers about extending maintenance and support for the servers. Furthermore, IT teams in the businesses need to assure that the latest software is compatible with the existing technology investments.

IT managers need to make concrete plans, which address all parts of infrastructure without disturbing the workflow productivity. Organizations will have to prioritize the future roadmap and regularly monitor the improvements along with following cost saving recommendations.