Burning Money Fast

A quick game of "Never Have I Ever". Put five fingers up and consider the following. For any that are true, put one finger down.

Never have I ever:

• Complained that our organization spends too much money on IT.
• Paid for software or hardware that we hardly use but still pay for today.
• Had to scramble to buy a computer or software that I didn't previously budget for.
• Checked my files and found multiple versions of the same document or presentation that you and your team emailed back and forth working on.
• Been unable to work for extended periods of time due to "the system" being down and felt like this happens all of the time.

If you have all 5 fingers up, you can probably stop reading this as you may not get much out of it. If you have all fingers down, you can probably stop reading this and Call Marcoby immediately for help! If you find yourself somewhere in the middle, read on to learn common ways businesses waste money daily on technologies and how your organization can avoid the same pitfalls.

License Management: The Hidden Drain on Your Budget

Poor license management can quietly siphon off your hard-earned profits, leaving you with a confusing yet hefty bill. Many businesses accumulate redundant, expired, or underutilized software licenses, unknowingly draining their budgets. They often also underestimate the number of unused software licenses they possess, incurring costs without contributing any value to your operations.

In the absence of proper tracking and license management, it's common for businesses to purchase additional licenses or add-ons for software they already have. This redundancy leads to unnecessary expenses and creates confusion within your software ecosystem.  Although less common and arguably more costly, failing to comply with license agreements can result in penalties and legal issues. Ignorance is not an excuse when it comes to licensing requirements, making license compliance a critical aspect of effective license management.

With this in mind, how can you reclaim control over your software expenses with effective license management strategies?

• Implement a recurring license audit to identify redundant or underutilized licenses.
• Implement centralized tracking system or software to keep tabs on your licenses and prevent oversights or duplicate purchases.
• Optimize license utilization by reviewing usage patterns and exploring opportunities for license reassignment or consolidation.

Embracing software asset management practices enables you to proactively manage your licenses, track expiration dates, and ensure compliance. By adopting these proactive measures, you can reduce waste, make smarter purchasing decisions, and create a leaner and more cost-efficient technology ecosystem that maximizes your budget and drives your business forward.

Simplify Solutions: Putting an End to Redundancy

In the quest for technological advancement, businesses often find themselves trapped in a web of redundant software applications. This accumulation of overlapping features and functionalities not only adds complexity to the IT ecosystem but also wastes valuable resources.

Many organizations unknowingly pay for software that offers similar functionalities. A very common example of this is organizations that pay for Microsoft 365 and Zoom subscriptions. They may use Zoom to run meetings and Microsoft 365 for their email because they don't realize that Microsoft Teams can be used to run meetings and is included in their Microsoft 365 subscription.  Relying on a multitude of software tools without a clear purpose or standardization leads to a fragmented and disjointed user experience.

How can a company avoid this and maximize their technology investments?

• Review operational workflows and identify applications whose functions could be completed by software more broadly used in other workflows.
• Favor software that offers integrations to reduce wasted time extracting information from one application and importing it to another.
• Engage with your IT vendors for tips on maximizing their product before adding on an additional product.

By taking proactive steps to reduce IT clutter and confusion, businesses can optimize their operations and achieve a more unified and effective IT ecosystem.

The Power of IT Standardization: A Cost-Saving Game Changer

A key strategy that can revolutionize your technology operations and drive significant cost savings is standardization. By embracing standardization in your IT infrastructure and software ecosystem, you can unlock a multitude of benefits while streamlining processes and minimizing expenses.

Standardization involves adopting a consistent set of technologies, tools, and processes throughout your organization. A lack of standardization means having a multitude of hardware and software configurations which is an administrative nightmare. This is most often seen when buying equipment as businesses. Without standards, you increase the likelihood of overpriced and under-performing devices that behave in unpredictable ways.

Ok that's great but how do you get there?

• Assess your current technology landscape and highlight where standardization makes the most sense.
• Determine a set of core technologies and processes that align with your business objectives and encourage adoption across your organization.
• Collaborate with stakeholders and communicate the benefits of standardization to gain buy-in from employees at all levels.

By standardizing your environment, it eliminates the need for multiple software solutions with similar functionalities, reducing complexity, and enabling more seamless collaboration across teams. In exchange, businesses benefit from reduced training and support costs, enhanced productivity and collaboration, greater negotiating power on pricing and contract terms with vendors, and improved scalability and flexibility as your business grows.

Maximize ROI: Unlocking Cost Savings through IT Modernization

IT modernization is not just a matter of staying current with technology trends; it is a strategic imperative to maximize return on investment (ROI) and unlock significant cost savings. By emphasizing IT modernization, businesses can optimize their technology infrastructure, streamline operations, and achieve substantial financial benefits.

Avoiding IT modernization can have severe consequences for businesses, including increased costs and business risk. The side-effects of outdated technologies and processes are higher maintenance and support costs, increased (and avoidable) security risks, and inefficient budgets where resources could be better spent.

How do you modernize your business technologies?

• Collaborate with technology experts and vendors to choose the right solutions that align with your business objectives, scalability requirements, and cost-saving potential.
• Migrate existing IT infrastructure such as Servers and Storage Devices to cloud solutions to offload the operating costs without losing features and functionality.
• Leverage vendor hosted solutions to avoid needing expensive infrastructure only to run 1 or 2 applications.

With a well-executed IT modernization plan, businesses can unlock significant cost savings, drive efficiency, and position themselves for sustained growth in a rapidly evolving digital landscape.

Closing Thoughts

By addressing common pitfalls and wasteful practices, businesses can reclaim control over their budgets and drive cost savings. From effective license management to streamlining software and embracing IT modernization, each step plays a vital role in optimizing operations and maximizing ROI.

In the journey towards smarter technology spending, organizations must be proactive and make informed decisions. By implementing the strategies discussed in this article, businesses can create a more cost-conscious and efficient technology ecosystem that propels their growth and success in a rapidly evolving digital world. Embrace the opportunities that lie in optimizing your technology investments and reap the rewards of a streamlined and cost-effective IT infrastructure.