5 Methods to Optimize Your IT Spending

Over the past few years, digitalization has taken on an increasingly high value across the globe, and as a result, the number of digital businesses is growing day by day. Despite the potential impact of various pandemic variants, the economic boom with high expectations of prosperity in the digital market will continue to stimulate technology investments. Increasing competition in the business world has become a driving force for corporate digitalization. The precise focus of digitalization lies in modernization. For this reason, companies allocate a large part of their IT budget to technology investments.

According to the forecasts of the market research company Gartner, global IT spending can be expected to amount to 4.5 trillion US dollars in 2022, which corresponds to an increase of 5.1 % compared to 2021. Especially spending on business and technology consulting is expected to increase up to 10% in 2022. Companies have various goals in the context of digitalization. The majority of companies do not have enough IT budgets to achieve these goals. And this is exactly where IT cost optimization becomes advisable.

But what exactly is this kind of cost optimization? How can businesses reduce their IT spending? Keep reading the blog to learn easy ways to cut IT costs for businesses in 2022.

What is the IT Cost Optimization?

IT Cost Optimization is a business process in order to reduce unnecessary IT investments by companies. Making use of IT budgets efficiently is one of the most important tasks of business leaders (CIOs). The key aim of IT cost optimization is to realize IT assets with low value, eliminate unnecessary IT spending and convert such savings into investments with high information technology value.

In the following paragraphs, we will take a closer look at the most important methods for IT cost optimization.

5 Key Methods for Optimizing Your IT Costs

1. Save on server costs
2. Eliminate unnecessary IT spending
3. Implement a holistic and comprehensive IT Asset Management approach
4. Ensure negotiations with different suppliers on prices and conditions
5. Identify your business needs and priorities

Save on server costs

Several companies use servers in which they have invested a great deal of money in the past now only to a limited extent. As a result, companies may be costing twice as much as their server costs should be. This is why the management level, especially IT managers, needs to analyse server usage and modify the server package according to their load.

Eliminate unnecessary IT spending

There is no viable possibility that IT investments will be 100% successful. Some corporate IT purchases may no longer have sufficient IT benefits. Needless, unused and duplicated IT assets are wasting the IT budgets of companies. Therefore, companies need to analyse their IT assets and get rid of IT assets that are not providing sufficient value. In order to evaluate them, companies need an effective IT asset management (ITAM) strategy. With its focus on IT assets, the ITAM software involves the business processes for tracking and managing IT assets throughout their lifecycle. The IT Asset Management Software improves the visibility of the framework Which allows companies to gain data and insights to rate their IT assets.

Implementation of a holistic and comprehensive IT Asset Management approach

Managing IT assets is an approach that organizations need to adopt in order to optimize their IT landscape and IT costs. ITAM makes sure that all assets for which the IT department is responsible are tracked and measured. By using ITAM, companies have extensive data about their applications, hardware, systems, and all integrations.

Ensure negotiations with different suppliers on prices and conditions

When purchasing an IT asset, IT departments must try to find the best value for both the price and the service. Given the strong competition within certain sectors, companies can use this situation to their own advantage in their procurement processes. They can purchase a product they need at a lower price from an alternative supplier while maintaining the same IT quality and functionality.

Identify your business needs and priorities

For a process to be successful, the goals must be set at the beginning of the process, whether you call it a digital transformation process or an IT investment planning process. Wanting to optimize your IT costs, you should first examine your business goals and your IT environment from a comprehensive perspective. Following this examination, your deficits and priorities will be identified more transparently. Moreover, it is also possible to organize and plan whether, for example, external, specialized service providers also need to be used to support the management of the IT assets.

In these ongoing processes, companies can also optimize their IT costs and increase their competitiveness towards their competitors by implementing a hybrid IT model. In addition, other effective methods can also be implemented, which can be created in connection with the digital transformation.

What is IT Cost Management?

IT cost management is the business process carried out to effectively monitor and manage the costs of all technology inventories of enterprises.

It helps enterprises to control their IT costs in order to ensure that they are able to meet the needs of their business while not exceeding their budget. This is important because most businesses have limited resources with which they can invest in technology.

In addition, IT cost management helps companies make sure that they are getting value for money by ensuring that they choose appropriate technologies for their business needs and use them efficiently. IT cost management requires a thorough understanding of an organization's strategic goals, operating environment and unique business requirements. It also requires an understanding of the tools and processes that will help achieve those goals in a way that delivers value to the business.

The goal of IT cost management is not just to reduce costs but to make sure that someone is constantly monitoring your technology spend so you don't end up wasting money on things you don't need or have already bought.

IT Cost Management Software for Businesses: 5 Key Benefits

1. Ease-of-use:
2. Minimize your risk:
3. Save time:
4. Increase profitability:
5. Reduce costs:

IT Asset Management Software helps You to Optimize Your IT Costs

IT Asset Management Software is a solution that allows companies to enhance and optimize their ITAM processes. Using ITAM software, companies can adopt a more integrated IT Asset Management process by protecting their IT assets from inefficiency and the dysfunctionality of spreadsheets.

With Loggle, end-to-end IT Asset Management software provides solutions for managing application portfolios, hardware asset management, integration inventory, and IT cost management. Companies can use Loggle to manage the inventory of all their assets and gain insight to shape their IT investments. You can run Loggle in the cloud or on-premise.

Do not hesitate and contact us for an appointment for a free demo version and also further questions. Our Loggle team will be pleased to answer any of your questions.