5 IT Cost Saving Strategies for Your Enterprise Infrastructure

Park Place Technologies


Parker December 01, 2020

COVID-19 has impacted organizations in multiple ways in their ability to serve customers while ensuring the well-being of its employees and will continue to do so into the 2nd half of 2020 and even 2021. In response, most leaders enacted IT cost saving initiatives while addressing a new reality for both its employees and customers.

As the economy slowly starts to rebound and businesses not considered essential start to cautiously reopen, Park Place has learned more about the impact on IT organizations.

CIO recently did a COVID Impact Survey which revealed, not surprisingly, that 2020 IT budgets saw an impact from COVID-19 and Cost Control/Expense Management is now a top priority for IT Leaders. Prior to COVID-19, 59% of IT Leaders expected an increase and 34% expected a flat budget in 2020, but post COVID-19 only 25% expected budgets to be higher than 2019 levels.

The analyst community also expects contraction in spending in technology. IDC expects a decline of 2.7% in worldwide IT spending with every industry impacted. Hospitality, tourism-related industries, and personal and consumer services are expected to decline by 5% or more. As a result, learning how to cut IT costs has become a priority since the inception of COVID-19.

Gartner paints a more grim outlook, declaring they expect an 8% decline in global IT spending. According to John-David Lovelock, Distinguished VP Analyst at Gartner, “CIOs have moved into emergency cost optimization which means that investments will be minimized and prioritized on operations that keep the business running, which will be the top priority for most organizations through 2020.”

5 IT Cost Reduction Strategies

As we go into the second half of 2020, Park Place would like to share 5 techniques for reducing information technology costs for your IT infrastructure amid a COVID-19 response.

1. Prioritize Optimization Programs

Organizations should ensure that they have optimization programs in place to make sure that they are not wasting resources. Often, major programs are put into place and little is done to ensure that they are running optimally and are as cost-effective as possible. Analyzing and optimizing your network hardware support contracts can help you identify options to extend the life of existing assets by deferring unnecessary hardware purchases.

The ClearView™ network hardware contract analyzer can provide an impartial recommendation on the best mix of extended support including assets that should stay on OEM support, assets that could provide cost savings if moved to third party IT maintenance, and equipment that is a good match for NetSure+, our Cisco SmartNet alternative that combines of third-party support with our global logistics expertise.

IT cost savings opportunities - picture of servers in cloud

2. Speed up Transformation with Cloud Migrations

Many organizations had planned cloud migrations in 2020 or beyond and these remained in the budget. This is a great time to speed these transformation projects up in order to receive the cost-benefit from an accelerated implementation plan. The accelerated transition may not lower IT costs immediately, but they could reduce overall operations expenses over the coming years. Look to storage migration services from trusted IT partners to ensure an efficient migration with no data is lost in the process.

3. Utilize On-Demand Resources

Unfortunately, staffing remains one of the go-to IT cost reduction techniques for companies around the globe. Many organizations had to make changes to existing staffing levels – particularly in non-critical roles or areas outside major headquarters or key technology hubs. However, this did not change the need to support critical hardware in other areas around the globe.

Instead of hiring additional staff later, it may be a good idea to look at project or ad hoc staffing options for break/fix, remote hands support, or Install/Move/Add/Change services, and IT deployment services for projects that are still necessary. These on-demand approaches can create data center cost savings over the long haul, as salaries can represent a large percentage of some organization’s costs.

4. Limit New Assets or Extend Lifecycle of Current Assets

Hardware refreshes should be limited to needed hardware to assist in changes to the working environment such as working remotely or implementing new products/services. Third-party maintenance options can extend the lifecycle of server, network, and storage hardware post OEM warranty/support. You can also consider purchasing pre-owned used hardware to reap additional information technology cost savings, when additional capacity is required or even gain additional revenue from ITAD programs if necessary too.

5. Partner with Key Vendors, Control Costs and Gain Flexibility

As you make cost control adjustments, it’s important to ensure the health of key vendors and utilize partnerships in order to create win-win opportunities. For example, perhaps an infrastructure managed service provider or third-party maintenance provider will allow greater flexibility in terms of service level agreements. You may be able to even alter the SLAs by location when an OEM may not be able to do so. Partnering can often provide new opportunities for managing IT costs when both parties tackle a challenge or goal with a win-win mentality.

The impact of COVID-19 will be felt throughout 2020 and into 2021. Businesses still have customers and employees to serve – although it may be different than in the past. In many cases, this has accelerated digital transformation. However, the business reality is that IT Leaders will have to adjust while also being diligent about cost control.

Park Place Technologies is happy to help you succeed. Contact us today to learn how!

About the Author

Parker, Park Place Assistant