Adopting new technology is a great way to stay productive and competitive and increase revenue. There’s no doubt about the potential of technology and how crucial it is for modern businesses. However, technology can be a costly investment. Despite its benefits, there are costs, such as purchases, staff recruitment and training, and maintenance.
Businesses today spend about 7.5% of their revenue on IT infrastructure. And while it may seem like a minimal amount, it can significantly affect the finances of small businesses. With about 29% of startups failing because of running out of cash, it’s more important to make your new technologies more cost-effective to avoid such fates. This article will provide a smart guide on how you can make new technologies cost-effective.
Get Expert IT Consulting
It’s easy to get carried away by the available hardware, software, cloud service, or other managed service technologies. The downside is that you may spend money on technologies and services you don’t need in your company.
Therefore, consulting an IT expert on the new technologies is essential before purchasing. For example, if your business is in Boston, you can contact Nens in Boston and other IT experts on what technologies to use in your business. The experts will advise you on security, design, planning, migration, and expansion matters. All these factors will be tied to your business’s specific needs. Additionally, you can get expert advice on implementing new technologies while cutting down costs.
Outsource IT Services and Staff
Another contributor to costly technologies is the need to purchase equipment and train staff. But technology constantly evolves, so you’ll need to get the latest technology and train staff again. However, opting for a reliable managed IT service and staff, such as the Isidore Group, can significantly reduce the costs as charges are based on the value provided and deliverables instead of the technology’s price.
For example, if you need to purchase software, instead of purchasing the hardware and having the software installed onsite, you can choose to get the software as a service (SaaS) instead. You get the same functionality without subscribing to the provider’s services.
Additionally, outsourcing IT staff means you don’t need to train employees and pay salaries. It’ll cut the costs you might incur on the new technology as you can get experts on a pay-per-service basis.
Apply Cloud-First Policy
A cloud solution is an excellent option for getting new technology while cutting costs. Cloud providers offer various services, such as SaaS, infrastructure (IaaS), security, and pay-to-use services. With these services, you don’t have to worry about paying for costly equipment, leasing, or upgrading them once new versions are in the market. Instead, you only pay for them as long as you need them. This brings the best cost-to-value ratio for new tech.
Additionally, cloud solution providers often update their technologies to keep up with market demands and trends. This means that by using their services, you’re guaranteed the latest technologies in the market. And besides being cost-effective, cloud solutions are agile and flexible, meaning you can quickly scale your business.
Therefore, implement a cloud-first policy in your organization. If any new technology you want to purchase has a cloud alternative, go for the cloud option. It’ll save you a lot of money in the long run.
Standardize Your IT Infrastructure
Introducing different technologies in your business brings more layers of complexities. For example, having different brands of laptops and software means differentiated employee training. Additionally, the cost of the technologies can vary significantly, leading to higher total costs.
However, having a standard tech ensures that there’s consistency all across the organization. Bringing all your employees on the same page eliminates the need to train them regularly on different technologies. By having one software across all departments, you can negotiate better prices from the vendor. Additionally, you don’t need to pay for extra software that might be less effective.
Consolidate Your Technologies
Consolidation means combining several technologies and systems into one. It’s a process that leads to more effective and streamlined processes. There are many opportunities to consolidate your technologies. First, you can consolidate the data centers by getting new and modern architecture. You can save up to 20% of the data center costs you previously used.
Secondly, consolidating new technologies means you only have one system to maintain in your organization. It’ll save costs, time, and space as it’s more manageable to streamline operations with one system instead of many different systems. Finally, you can also cut the power costs of the new technology as energy consumption by the systems is significantly reduced.
Use Open-Source Software
Open-source software provides source codes and community support to help you set up and use a particular technology. Usually, new technologies come with high license fees, which can be detrimental to small businesses and startups. But open-source software offers an affordable yet highly effective alternative.
Open-source software is highly customizable. The code is available and can be modified to suit your needs. There are also no compatibility and portability issues, as there are no vendor lock-ins. Finally, open-source software requires less hardware power than other workstations to perform tasks. It can also help reduce hardware costs, reducing overall technology costs in your organization.
Use Free Resources
Most technology providers always have a trial or freemium version for their services. While the functionalities may not be as robust and effective as the paid version, you can test the product before paying. Therefore, you can avoid paying for software that doesn’t meet your organizational needs.
Furthermore, there is free software that can still perform all the tasks. For example, many free SEO tools serve the intended purpose of tracking website traffic over time. As such, you may not need to invest in paid tools if you can still get the same results from free tools. It’ll save you a lot of money.
Technology plays an essential role in any modern business. But still, it can be costly as it keeps evolving, and businesses must keep up with the new technologies. Spending money on these without proper planning can bring your business down. However, you can check these tips on making news technologies cost-effective. That way, you can enjoy the benefits of technology without risking your finances.