Saving Money – Casserly Consulting

Budgeting for IT Can Benefit Your Business’ Bottom Line

Your business depends on a budget to come out in the black at the end of the fiscal year, and the way you invest that budget will have a considerable impact. As you create this budget, your IT needs to be one of your top considerations – after all, it is what effectively powers the modern business. Here, we’ll discuss how diligently incorporating your IT into your budget can help your business be more successful down the line.

How to Approach Your IT Spending
When determining an IT budget, perspective is an important part of the process. It can be tempting to view your IT as just another cost of doing business, but it really is more than that. Your technology (and the state it is in) has ramifications that spread to your entire business, so if it is lacking, everything will be. Employee morale will suffer, your productivity will slow, and your incoming cash flow will falter.

After all, an IT budget needs to account for a lot. There are the costs associated with acquiring and subsequently upgrading your information technology, as well as training your staff to properly leverage these solutions. However, a good IT budget will also account for the odd inconveniences that will require some financial spending to resolve. Furthermore, with your budget in mind as a reference, explore some of your options as far as cost-savings go… are you paying for more resources than you need? Are you leaving money on the table anywhere when those funds could be used more effectively contributing to another goal? While information technology is hugely helpful when leveraged properly, it can become a financial burden if over-invested (or even under-invested) in.

This is how you should actually consider your IT budget: an investment. While some of it will be classified as a business expense, much of your spending will be into endeavors that help your business, either by increasing efficiency or reducing waste. Either way, your IT can be used to put your company in a better financial situation.

Encouraging Financial Well-Being with an IT Budget
If you’re unsure of how to proceed with budgeting your IT, we’ve compiled a handy list of things you should (and shouldn’t) do during the process.

Have a set budget for your IT. In order for your business to be able to utilize the caliber of technology solutions it needs for success, you need to put forward the investment into those solutions.
Invest in business-enhancing solutions. Whether you’re boosting your internal productivity or fortifying your business against threats that could keep you from conducting business as usual, your IT budget should be spent in ways that directly benefit your operations.
Don’t shoot from the hip. Like we alluded to above, if you aren’t investing in your IT solutions correctly, you could find yourself in a worse spot than before. It is crucial that you go about investing in your IT strategically, directing funds to where they are needed and where they will help you to generate more revenue.

Alexa von Tobel, CEO of LearnVest.com, said, “We all have pretty much similar dreams, and at the root of all those dreams is being able to be in control of your money.” We agree, which is why we’re dedicated to providing you with the most value in our IT services without emptying your coffers. To learn more about the easily-budgetable services that we have to offer, reach out to us at PHONENUMBER.

Is Your Cloud Solution Actually a Money Pit?

The cloud has proven to be an extremely useful tool for the modern business. Not only does it provide anywhere-anytime access to applications, processing, storage, et al; it also delivers those products as a service, allowing you to budget for recurring costs rather than major upfront ones. This provides your organization with functional, supported, and secure computing environments that eliminate a lot of the support costs that traditional computing environments require. It sounds like a perfect scenario for small and large businesses alike, but things aren’t always what they seem, as a lot of cloud users have found that they have incurred several hidden costs by using cloud platforms. Today, we take a look at these hidden costs.

A study from Research In Action polled 468 CIOs about their cloud usage and the costs associated with them. Many admitted that cloud investment was one of the largest expenses their organization would have from a technology point of view. The study went on to find that while a majority of CIOs considered the “hidden” costs of this technology, much of the concern is alleviated by the reputation of their vendors. Some of the potential problems they considered include:

Having to put forth more effort to properly manage vendors, and their corresponding Service Level Agreements (SLAs).
Bottlenecking and the impact poor cloud performance could have on brand perception, productivity, and customer support.
The increased cost of solving complex problems inside cloud environments.

Are these concerns justified? Sure, but they are hard to measure. Many businesses just haven’t developed a system to properly quantify the perceived loss in revenue tied to cloud inefficiency. In fact, most companies don’t have updated, automated methods in use to track and manage their cloud performance.

Costs of Scalability
Many organizations also run into cloud cost overruns when dealing with the scale of their cloud platforms. Costs associated with over-provisioning (buying too much), under-provisioning (buying too little), management, and administration of cloud hosted environments present costs that may not look significant up front, but over time can have negative effects on the overall profitability of a business. Understanding the amount of space/processing you’ll need to meet your organization’s needs is almost always going to be a fluid situation, but understanding how they affect your business’ bottom line is crucial to mitigate unwanted monetary responsibilities or cost overruns associated with the cloud platforms you utilize.

Going Too Far
Cloud platforms are nice, but you don’t have to look much further than your personal situation to see how the ease of use these platforms provide can get expensive pretty quick. For the individual, costs add up quick thanks to cloud-based streaming media and other platforms that come in a subscription model. You’ve got Netflix, Spotify, Hulu, and many, many more that are relatively cheap. Microsoft Office 365 is exceptionally useful and affordable, providing unparalleled value for about any computer user. The more you subscribe to, the more costs add up, which is why you’ll want to design, and stick to a dedicated plan to avoid overextending yourself, or your organization.

Utility computing in the cloud, whether it be applications, storage, processing, or some other form, is extraordinarily valuable, but only if you understand how to avoid paying more than you should for your cloud assets. The knowledgeable technicians at COMPANYNAME can help you come up with cloud deployment strategy, while also helping you avoid cost overruns typically associated with these assets. Call us today at PHONENUMBER to learn more.