Cost cutting has hit each and every business in the last decade. The businesses target on maximizing profits by getting rid of extra overhead expenses and outsourcing the processes if required. It has been observed that the first step towards cost cutting is laying off extra, under-used or non-performing human resources. Downsizing has been a major threat to the employees specially working at lower and middle level.
The department that usually witnesses downsizing the most is IT department. It has been observed that in the long run, the companies tend to outsource IT processes to maximize their profits. While closing down the IT departments, the companies usually start with outsourcing server and storage management. The service providers that are specialized in this field are contacted for data storage, maintenance, retrieval and access. This saves IT infrastructure cost that the company has to bear from time to time. Although outsourcing is a solution but there are ways through which a company can reduce costs without putting down the machines and servers. Remember, closing down the IT department can be very risky as a single wrong decision can lose data worth of millions of dollars or can shut down the whole IT infrastructure of the company. There are companies that specialize in this transition process and even help companies use their current setup efficiently. Based on following solutions, they may recommend a solution that best suits your company’s IT environment:
Using Serve Space To Increase Efficiency
It has been seen that many companies do not take full advantage of the installed servers. The servers have a specific capacity and if a company is shifting to a new server without using the previous one to its maximum capacity, the company is actually wasting money, hence, increasing its cost. The service providers can review the server usage and recommend accordingly. They can even guide how a company can effectively use its server capacity. They can consolidate some data, remove unwanted and useless data and free some space for more storage.
Avoid Upgrading Already Installed Servers
Many companies opt for updating the old servers rather than buying the new machinery, but it is observed that this decision can cost more in the long run. Although old machinery can be upgraded at lower cost but new machinery is usually more energy efficient and can bear more load. Maintenance and troubleshooting requirements also minimize with new machinery on board.
Minimize Cost Of Virtualization Licenses
Virtualization also amuses many companies as they tend to reduce the cost of IT processes. It is however important to know that if a Virtualization solution is not selected intelligently, it can cost more than physical IT arrangements. The companies usually pay an annual subscription or monthly rent for virtualized data space and also for licenses of required applications. The experts and service providers may at times suggest hosting some machines in the office and reducing licensing cost of applications while using only the data storage facility virtually.
If the IT department of your company needs certain changes, consider hiring a service organization and ask them to provide a diverse but specific IT solutions for your organization like managed services to ensure smooth operations.
Maegan Pulman is a freelance IT consultant and technology enthusiast. She is active in local and international IT events and is always on the lookout for the latest industry trends.