When it comes to cost cutting exercises, there’s much to be said for the discomfort it can bring. But can we put this feeling aside for the benefit of effective IT cost optimisation?
At a time of digital transformation, post-pandemic recovery, and the thrill of growth, it’s no surprise that reducing costs is high on the list of many organisations. In some cases, there’s an awareness that solutions adopted as a reaction to the pandemic have served their purpose, while others are looking for a wholesale rejuvenation of their IT spend.
Whatever the motives, the same issue persists: there’s a stigma around cost cutting that refuses to disappear, with teams worried about how findings reflect upon them and users concerned that they’ll have fewer tools to work with.
With that in mind, we decided to explore and reframe some examples of cost cutting stigma in an effort to remove barriers to an effective programme. Do any of the below sound familiar?
1. Lack of Budgeting Credibility
A significant – and understandable – concern for IT leaders is the perception of their department by the rest of the business once cost-cutting exercises begin. Highlighting the areas where money could potentially be saved, they fear, will raise the question of why it wasn’t already streamlined in the first place.
In truth, identifying areas of saving is a universal occurrence and not unique to any organisation. Indeed, many organisations lack the scope, visibility, and tooling necessary to gain a complete view of their current estate, and so remain in this problem area. Similarly, influence from elsewhere in the business may also have an impact on IT costs – such as a sudden expansion of personnel or the requirement for new solutions.
Ultimately, cost optimisation – rather than simple ‘cost cutting’ – is an ongoing process that will continue to unearth new opportunities each time. Findings aren’t necessarily indicative of how budgets are being handled, and if the appropriate action is taken, it can be an incredibly powerful tool for IT leaders. In short, IT’s credibility is only strengthened by the improvements they can make.
2. Cutting Costs Means Cutting Corners
There’s also a misconception that cutting costs means organisations will be cutting corners, scaling back solutions and licences for its users. While it’s essential to strike a healthy balance – users still need the licences central to their roles – cost-cutting exercises actually open up whole new opportunities for innovation.
At ITEXACT, we’ve reframed ‘cost cutting’ as ‘converting waste to value’. This means that, while our cloud asset management platform Surveil will highlight areas that can be scaled back to reduce wastage and costs, it actually encourages and empowers teams to reinvest and reallocate freed up resources into other areas of strategic value – such as security or training.
As a result, ‘cost cutting’ becomes ‘cost optimisation’ – a productive process that helps to reinforce various segments of the business while streamlining the use of other solutions and licences. No cut corners in sight.
3. Effective Cost Cutting is Time-Consuming and Overwhelming
An effective cost-cutting exercise can be a huge undertaking, especially when there are many departments, users, and technologies to handle. All of a sudden, leaders are being asked to pull together data and collate it with that of their colleagues to create a snapshot that forms the basis of some tough business decisions. Take into account the requirement for cost evaluation to be an ongoing process, and the entire process can quickly overwhelm.
In reality, it needn’t be so daunting. With the right tool, the cost optimisation process can be simplified and made accessible across the organisation, without compromising on the level of insights available. Surveil – our cloud asset management platform – was built with this challenge in mind. Using AI and secure read-only access, Surveil provides users with clear intelligence and transparency from across the business, presented in clear custom dashboards.
All of a sudden, cost optimisation becomes as simple as Surveil reporting on unused licences, potential cost savings in consolidating solutions, and recommendations for making the most of your Microsoft investment – freeing up teams to do what they do best, rather than undertaking lengthy cost-cutting exercises.
Disregarding the Stigma
While every organisation has different challenges and ambitions, similar stigma exists around cost cutting no matter where you look. With some clever reframing, however, leaders can acknowledge the challenge ahead of them and find creative ways to continuously optimise their licensing and solutions costs proactively.
There’s something to be said, then, for positive thinking. After all, that’s how Surveil’s users secure the best cloud optimisation results possible – no stigma in sight.