Currently, successful IT infrastructure cost reduction programs combine digital technologies and next-generation operating models. The main objective of organizations behind their infrastructure cost reduction strategy is to be better aligned and higher performing. Some of the key benefits gained by an infrastructure cost reduction strategy include
- Minimized impacts of organizational bottlenecks.
- Improved resource flow to strategically important areas.
- Reduced cost inefficiencies.
- Enhanced probability of materializing organizational strategy.
- Better alignment of business functions with objectives.
The cost reduction strategy for an IT infrastructure must be focused on leading with organizational changes, trailed by process changes. It must promote a cross-functional transformation across the organization and provide structural solutions to drive cost scalability and growth. IT cost optimization strategies are result-oriented with implications of resulting in measurable and tangible improvements.
Measures that Organizations Must Take For Effective Infrastructure Cost Optimization
Workloads are business-critical for organizations, which triggers the need for a secure and a robust infrastructure. High user experience and continued data growth has been putting pressure on IT costs. This has prompted organizations to move to cloud storage for effective delivery of workloads. Storing information and data off-site is more secure, leading to cost optimization in terms of IT infrastructure operations and maintenance while enhancing productivity. Cloud cost optimization solutions are helping organizations achieve this in a seamless manner.
Less physical servers means lower management and maintenance requirements. Organizations making a shift from physical servers to virtual machines see cost reduction in terms of hardware. As the dependency on tangible servers is eliminated, organizations can realize cost optimization by saving on firmware and energy bills.
Software-Defined Data Center
A software defined data center (SDDC) helps organizations to leverage computing, telecommunications, networking and storage functions cost-effectively. This relieves the organizations of their financial and time constraints in terms of buying and maintaining hardware. Cost optimization benefits associated with an SDDC come along with enhanced security and opportunity to create new services with faster deployments.
Organizations spend a significant amount on IT infrastructure. Outsourcing is seen by organizations as a means to save on ‘run’ costs and free up funds. Besides having numerous cost optimization benefits, outsourcing allows organizations to create high-quality services at low cost with a high level of effectiveness. The McKinsey Global Institute finds that outsourcing IT services helps organizations achieve 60% cost reduction.
Targeting Immediate Impact
Organizations must look to suspend, eliminate or reduce items that might impact business growth in the short-term. Expenses in such cases involve the ones paid quarterly or monthly on the ‘pay-as-you-go’ basis, instead of annual payments. Organizations must prioritize costs that can be truly eliminated and not just freeze for a certain period of time. Such costs tend to recur further down the line.
New opportunities for cloud cost optimization and IT infrastructure cost reduction have come to the fore for modern businesses. This includes reduced resource utilization and internal savings. Organizations must have a clear plan for cost optimization of their IT infrastructure without compromising the scope or security of their systems. Leveraging a suite of cost optimization solutions and technologies can help organizations focus their resources more on business growth strategies and innovation.