News and Insights – May 2016

Managing IT Costs Without Compromising Performance

In May 2016, Argentine SMBs continue to face rising operational costs, fluctuating exchange rates, and increasing demand for digital capability. Many business leaders feel caught between needing better IT infrastructure and managing overhead. This month, we explore how you can reduce IT expenses while still achieving the performance needed to grow.

1. Know Where Your Budget Is Going

Start by auditing your current IT costs. Break it down into categories: hardware, software licenses, support contracts, subscriptions, and upgrades. Many SMBs discover recurring payments for tools that no longer add value or are underutilized. Understanding the breakdown reveals areas to trim fat without impacting users.

2. Use Open Source or Freemium Tools

Modern open source solutions offer viable alternatives to paid enterprise software. LibreOffice, Thunderbird, and Bitwarden are examples of stable, supported options. You can also reduce licensing fees by switching to freemium versions of SaaS tools until usage demands a premium upgrade.

3. Virtualize and Consolidate Infrastructure

Running multiple servers for different functions? Consider virtualization. It allows you to run several logical servers on a single physical machine, reducing power, cooling, and hardware maintenance costs. This strategy also simplifies disaster recovery and backup planning.

4. Review and Optimize Support Contracts

Are you paying for services you don’t need? Many businesses use premium support packages but rarely access them. Instead, consider pay-as-you-go or tiered support options. Also evaluate your Internet, VoIP, and cloud contracts—competition in 2016 has increased and there may be better local options available now.

5. Empower Users Through Self-Service

Training employees to resolve common IT issues saves both time and money. Create a central knowledge base, provide basic cybersecurity and troubleshooting training, and make resources accessible through your intranet. Fewer support tickets means reduced helpdesk strain and faster issue resolution.

Start With a Cost Control Audit

We’ve created a simple template to help you track IT cost areas and assess possible changes. Here is the template.