5 Ways to Slash Information Technology Costs

by Russell Mickler


save-money-on-it

Small businesses need a new model for doing business. All indications show we are in for a long-range economic restructuring. You and your clients need a dramatic change that can be implemented rapidly to quickly save thousands of dollars. If I were your CIO, I would recommend these five innovative approaches to leveraging IT. They can potentially save you a lot of money in a short time.

1. Freeze Hardware and Software Purchases

If you were looking to spend money on acquiring new hardware or software—don’t. Cash is king; hang on to it. If anything, technology industries will be feeling pain in the future, meaning that the consumer will have stronger purchasing power and manufacturers will be offering steep discounts to cycle their excess inventory.

2. Eliminate, Reduce or Suspend Renewal Commitments

Eliminate or reduce your recurring fees and charges. I have several dates marked on my calendar to end those recurring charges hitting my card every month for web-based services. Terminate or suspend automated renewals of software licenses, or negotiate a better deal with your provider. If your circuit or telecommunications contract is due to be reinitiated this year, talk to your provider about your options. Get more bandwidth at a lower monthly rate to preserve cash flow. Don’t hesitate to consult with competitors.

3. Skype It

Skype offers unlimited calls, unlimited long distance, anywhere in the domestic US. Literally, you can pay $20 for a full year of phone calls for 2009. That’s it. Use Skype to reduce cell and landline calls and switch to a lower-cost mobile plan, saving cash. Calls on Skype can be routed from Skype to my mobile and to Skype Voicemail. Instead of paying your Long Distance and Local Exchange Carrier for long distance and local callson top of what you’re already paying your ISPleverage your Internet bandwidth. Also, Skype can be used for Instant Messaging, peer-to-peer calls on the Internet, as well as for video/audio conferences for up to 20 people. Really: re-think your phone expenses.

4. Use Electronic FAX Solutions

Right now, you’re paying at least $35/month for an analog line for the privilege to send/receive faxes on an ordinary fax machine. Ditch the line and throw away the fax. Many Local Exchange Carriers offer an electronic fax option that can even keep your existing phone number. These companies will receive the fax and route it to you electronically via email. Otherwise, take a look at your local server resources: chances are you’re not using an electronic fax solution native to your small business server. As a last resort, think of subscribing to eFax, which will route faxes to your email. Save on toner, maintenance of the fax machine, the productivity loss for handling paper documents and the monthly expense of the fax line.

5. Time to Telecommute

Realistically, the modern knowledge worker can work from anywhere. Enable your team to become virtual workers by simply allowing it through policy. To exercise the privilege, have team members sign a release if workman’s compensation claims trouble your decision-making. Tell your staff that you’ll be reviewing their work more frequently to provide corrective action over solo-behaviors. These are times for taking action. Stop worrying about how to do it and just do it! You’ll find that you can trust your employees or contractors more than you think.

Meanwhile, leverage small business resources you might already have with your Windows network, such as Remote Web Workplace, Terminal Server, and Remote Desktop Services. Use Microsoft Office Live, Zoho, or Google Apps for free and consolidate documents online, accessible from anywhere and secure. This will limit driving, insurance payments and utility expenses. Take advantage of municipal and state tax breaks for offering telecommuting options, move to a 4/10 workweek or offer variable flexibility in schedules to both inspire your staff and give them the flexibility to save a little money themselves.

Finally, just because you’re cost cutting, don’t cut your awareness of security factors. Make sure that holes are patched and be sure to suspend network access of terminated employees and contractors you are no longer using. Ensure that access to critical documents and files (read: your intellectual property) are patrolled and that confidentiality is maintained. It would take little time for a disgruntled employee to reach inside the network and cause disastrous harmpay attention to the important details of managing your electronic assets.

If you implement just a few of these ideas, I am certain you can achieve substantial cost savings. In these times, you need bold, innovative approaches to business. These may very well be your saving grace when it comes to controlling expenses, as well as giving you a leg up on the competition.

Comments

  1. James Bach says:

    Good article, Skype can lead to security risks which I found most companies are not willing to deal with. Open to many holes they say. I Tell them if you were hacked you would not even know. The polices you have in place now will protect you ageist the common virus. But if you are truly hacked no one would know until to too late…Don’t let the sharks get you, remember to PEN TEST (penetration test).

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