March 14, 2023

Optimising IT spend with the cloud

We discuss IT, staff and operational costs and how best to optimise your spend with cloud

Optimising IT spend with the cloud

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How businesses are optimising spend using cloud computing

Optimising IT costs involves finding ways to reduce spending while still maintaining the necessary level of service and support for the organisation. Cost optimisation is a long-term activity that seeks to maintain an organisation’s operations whilst reducing costs. 

It's important to note that cost optimisation should be approached strategically and carefully, with an understanding of the potential impacts on the overall business and workforce. It should be a continuous process, continuously evaluating the company's expenses and finding ways to improve.

Manage the IT staff costs

Staff costs are one of the largest expenses for IT departments, so managing them effectively can make a big difference. This might include automating repetitive tasks or outsourcing non-core functions. Outsourcing non-core functions can help companies save on the time and resources required for onboarding and training new employees. Additionally, outsourcing allows for finite contracts, giving companies greater control over their expenses and the ability to adjust their staffing levels as needed. By outsourcing non-essential tasks, companies can focus on their core competencies and reduce their overall staffing expenses.

Optimise your IT spend 

Cloud computing is a more versatile and scalable solution when compared to legacy systems. You can choose exactly what you need and scale up or down effortlessly. It also saves on direct costs such as hardware, software, storage, and security tools, as well as indirect costs such as electricity spend and the cost associated with downtime. 

This means that you’re replacing your server rooms with virtual solutions managed and maintained by the service provider rather than your own team. No need to worry about upgrading your hardware since service providers will always use the best, most reliable hardware on the market. 

Reviewing IT expenses regularly helps identify areas where costs can be reduced. This might include reducing software licenses, renegotiating vendor contracts, or eliminating unnecessary hardware.

How much does the cloud cost?

Before we get into how much the cloud costs, a great reason to switch to the cloud is that you only pay for what you need; what’s more, is that it’s fully flexible, and you can scale up or down whenever you need to. A detailed service level agreement can outline this, but with CloudSmiths, we’ll ensure that your solution is one that best fits your current and future needs. 

Check out the cost calculators for Google, Azure, and AWS to get a better understanding of how much you could be saving.    

Improve your operational efficiency 

Cloud computing saves money since it enhances operations making them more efficient and effective by connecting employees and data in a way not always possible with on-premises solutions. Having good, reliable data (that isn’t siloed) at the tips of your fingers can save a lot of money by allowing you to make better data-driven decisions and letting operations run smoothly. 

Furthermore, continuously monitoring and auditing your IT environment can help identify and resolve issues that might be causing unnecessary costs, such as unoptimised hardware utilisation, outdated software, or misconfigured systems.

Final thoughts 

Saving money and optimising spend is a high priority for 2023 and beyond. Whether it’s switching cloud providers or migrating to the cloud, the cloud is set to make a difference to your business. Contact us today to find out more about the cloud and how our managed services team can ensure your costs are optimised constantly. 

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