Running a business comes with significant costs, and technology is no exception.
From budgeting and web presence to customer service and cybersecurity, technology is essential—but its expenses have to be watched and managed.
Cutting costs the wrong way can lead not just to inefficiencies but security vulnerabilities and even higher long-term spend.
So how can your company optimize IT costs without compromising stability, efficiency, and security? Let’s take a look!
Software Licenses & Subscriptions
Businesses often pay for more software licenses than they actually use—or continue subscribing to tools that no longer serve their needs. Optimizing your software spend can significantly reduce IT costs without impacting productivity.
- Regularly review subscriptions and current software. Periodic audits help you assess which software is actively used and whether all purchased licenses are needed. This helps you identify unnecessary expenses before they snowball.
- Eliminate unused SaaS subscriptions. Many businesses are paying for cloud-based tools employees no longer use. Canceling or downgrading unused or underutilized subscriptions frees up your budget for more critical investments.
- Consolidate software solutions to avoid redundancy. Some tools have overlapping functionalities (e.g., Salesforce and ZoomInfo or email cybersecurity apps). Standardize a single solution to reduce costs and improve efficiency.
- Research and consider open-source alternatives. Many open-source tools provide enterprise-level functionality without the enormous price tag of proprietary software. For example, LibreOffice can replace Microsoft Office in some cases, and OpenVPN can be a cost-effective alternative to commercial VPN services.
Cloud Resources
Cloud services offer myriad benefits, including scalability and flexibility. But like everything else, they have to be managed. Otherwise, businesses can overspend on unused storage, redundant capabilities, or over-provisioned resources. Optimizing cloud use ensures efficiency and can lower costs.
- Identify and eliminate underutilized cloud resources. Make sure your business isn’t paying for cloud services it doesn’t use, like idle virtual machines, excess storage, or outdated backups. Conduct regular audits to find and eliminate unnecessary resources.
- Take advantage of long-term cloud discounts. Like other vendors, cloud providers offer discounts when you commit to using certain resources for a specific period of time instead of paying month-to-month. If your business relies on cloud services consistently, opt for these plans to save big!
- Leverage hybrid-cloud solutions for cost-effective scalability. Take a hybrid approach: combine on-prem infrastructure with cloud services. This allows your business to optimize performance and control costs by keeping critical workloads on site and using the cloud for scalable, on-demand needs.
Cybersecurity
Cybersecurity is mission critical. And it doesn’t have to overtake your budget.
- Use Multi-Factor Authentication (MFA) to prevent unauthorized access. MFA adds an extra layer of security beyond just passwords, making it significantly harder for anyone to breach your accounts. Many cloud and SaaS providers offer built-in MFA at no additional cost—a feature you want to take advantage of!
- Implement strong endpoint protection. With employees accessing company data from multiple devices, those endpoints (e.g., laptops, mobile phones, tablets, etc.) have to be secure. Affordable endpoint protection, including antivirus software and endpoint detection & response (EDR), can prevent malware infections and unauthorized access at a reasonable cost.
- Regularly update software and enforce patch management. Outdated software is an easy way for cybercriminals to exploit vulnerabilities. Automate updates to ensure security patches are applied as soon as they’re released, reducing the risk of breaches caused by unpatched systems.
- Educate employees on cybersecurity best practices. One of the most cost-effective security measures? Training employees to recognize phishing attempts, use strong passwords, and follow security protocols! An in-the-know workforce reduces human error—one of the leading causes of cyberincidents.
Conclusion
Keeping your business going strong means keeping a close eye on the balance between IT expenses, performance, and security.
Regularly auditing software, optimizing cloud resources, and implementing cybersecurity measures all help your business significantly reduce IT expenses—without compromising quality.