Cutting IT Costs Without Negatively Affecting Business -


Cutting IT Costs Without Negatively Affecting Business

By Joseph B. Kappernick

In today's enterprise environment, IT leaders often find themselves in a tough spot. They are expected to keep the IT infrastructure updated and compliant, while at the same time reducing costs during uncertain times. They must constantly come up with ways to cut spending without negatively affecting the business's ability to stay relevant and competitive. Sacrificing necessary IT projects and upgrades is simply not an option.

Fortunately, there is a way to get the technology you need without going over budget. The key is to cut costs before the purchase is even made. You can achieve this by being prepared for negotiations to get the most value for your investment. Here are six considerations to make before your next IT purchase:

1. Your existing vendor may not be the best

Certain vendors may be more knowledgeable or be able to offer better deals on certain technologies. Don't assume that your current vendor is always the way to go. Compare the pricing, terms and support of several different vendors to find the one that best suits your needs.

2. Don't buy what you don't need.

Vendors will often make bundled services seem like a easy and cost saving option. But beware-- bundles are a great way to buy more than you need and lose money that could be better spent elsewhere. Any perceived bundle discounts may be eaten up by the cost of services you won't use.

3. Know fair market pricing

Determining fair market value on many technologies can be a difficult process, but it is one that is necessary if you want to avoid overspending on your purchases. Consulting with an expert can help you benchmark pricing and find out what you should pay.

4. Reduce unnecessary support

New software and implementations need to be supported, but how much is too much? Before agreeing on any level of support, access which areas need premium support and which ones will function with less.

5. Annual maintenance increases are not mandatory

Vendors will often try to increase maintenance fees every year and tell you it is standard practice. If you agree to these annual increases, you are overpaying for service.

6. Plan ahead

Always remember to make purchases that will put you on track for your 12-18 month goals, not ones solely based on what you need now. Keeping these future goals in mind will set you up for success as your business grows and changes.

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