How to reduce hidden IT costs for your business

How to reduce hidden IT costs for your business

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Are you aware of all the potential costs incurred through your IT operation? In these tough economic times, we all need to be more conscious of ways to reduce expenditure, and protect our businesses.

Here are some of the hidden IT costs that you may not be aware of, and how to reduce them, or remove them altogether.

Eliminate server hardware and management costs

If your business has successfully implemented remote or hybrid working, this proves your team doesn’t need to be in the same room as your server. In that case, it doesn’t make sense to waste capital investment on an on-prem’ server. Not only can on-prem servers be expensive, they usually have a life of around two or three years before they need to be updated.

When you move your IT systems and file storage into the Cloud, you don’t need to invest in on-prem servers at all. Being in the Cloud also removes the unavoidable management time and upfront costs, as well as any hidden surprises.

Break the IT CAPEX cycle

Capital expenditure (CAPEX) budgets are often first to be cut in difficult economic times. Much like leasing a car fleet, Cloud computing provides an OPEX (operational expenditure) advantage to businesses. Compared to large CAPEX costs for server upgrades that can sneak up on you, a monthly IT service model typically offers tax and budgeting advantages, making it easier to manage as a monthly fee.

Moving your IT operations into the Cloud can be a great way to improve cashflow thanks to the flexibility of affordable monthly payments. IT becomes an operational, monthly cost a utility much like your electricity or water.

Stop overspending on tech

When investing in devices for your staff, think about what functionality they require to carry out their work effectively and efficiently. Not everybody requires the latest machine. Most people can perform their day-to-day tasks, and much more, using Office 365, therefore requiring only a basic, economical machine to work on, as all functionality, and data storage are taken care of in the Cloud.

Don’t pay for what you don’t use

At uncertain times it is not unusual for businesses to go through periods of change.  Some IT contracts mean being tied into paying a set fee for a year or longer, which can lead to having over- (or under-) utilised IT assets in the server room.

Migration to the Cloud (also known as digital transformation), gives your business the flexibility in your IT infrastructure to easily accommodate changes, from month to month.

In the Cloud, you pay monthly, depending on the number of users, so if your workforce reduces, you won’t be paying over the odds and you can scale as much as you like.

Operations software usually offers enhanced performance, which aids staff in their day-to-day tasks. Microsoft Azure gives the freedom to manage and deploy applications on a secure global cloud network and has flexible pay-for-what-you-use pricing options.

Minimise the risk of human error

While Cloud storage and file sharing solutions make hybrid working easier to facilitate, there is an added element of risk in employees working from home. Even small errors (such as sending an email to the wrong person, or falling for a convincing phishing attack) can have a big impact on cybersecurity. This can be very costly for your business in terms of ransomware payments, downtime or reputational damage.

Cyberthreats are becoming increasingly more sophisticated and the Cloud offers better cybersecurity than an on-prem server would. It also provides increased visibility. Cybersecurity measures must also be backed up with training and awareness for all employees, who can act as a line of defence against cyberthreats for your company. Ask us about specific data prevention policies designed for your industry sector or organisational requirements. We help regulated businesses that require standards for both data compliance and information security.

Invest in a backup plan

Should your business fall victim to a cyberattack, or natural disaster, it is important to have a disaster recovery plan and to store backups offsite.

The Cloud infrastructure not only provides added security, compliance, device and user management for employers, it also facilitates disaster recovery. A comprehensive cybersecurity solution and a cloud backup solution is an essential business investment and manageable in the Cloud, whatever your industry.

How can Extech Cloud help your business?

If you want to find out more about how to get the most from your IT operation and reduce costs for your business, contact us today.