Five top tips for maximizing your IT budget in 2023
The importance of budgeting is vital for your organization, and starting the year off strong is essential. Discover how to maximize your IT budget now.
IT cost optimization uses strategies and techniques to optimize your budget usage for the future, and involves identifying and changing any excess resources or unnecessary licenses. By having an effective budget, you will have more money going back into the business to innovate and improve efficiency, productivity, and revenue. It’s the key to sticking to your budgets and producing high revenue consistently, with a reported up to 61% of organizations planning to optimize their cloud use for cost savings.
Why is it important to maximize your IT budget?
Cloud optimization is a process that produces high rewards, such as reduced costs and improved productivity. However, maximizing your IT budget is essential not only for reducing costs and improving productivity, but for making the most of your cloud software too.
Cloud cost optimization involves finding and running the most efficient cloud services at the lowest cost to ensure you’re getting the greatest benefits for your money. It’s essential to understand your cloud costs in order to maximize your budget.Get your free cloud cost optimization infographic now
How to maximize your IT budget
1. Organization is key
Organization is essential to making your organization’s budget stretch. In knowing exactly what features you have, what you need, and what they cost, you will understand where your budget is being spent. This ensures you’re able to assess and make changes when necessary to maximize your expenses.
Keeping organized and knowledgeable about your spending is the first step towards maintaining an effective IT budget.
2. Prepare in advance
To ensure you’re staying on top of your budget, keep track of your expenses ahead of time. Before making any major purchases, calculate the cost of it over the cost of all your other expenses. To stick to budget, make sure you catch any price fluctuations before they happen, allowing you to make adjustments to your budget accordingly.
3. Look into the future
Don’t use data from previous quarters to determine your budget for the future. Price, usage, and customer numbers change constantly, so your budget should be designed to work around these fluctuations to stay efficient. It was found that 93% of enterprises have a process to forecast cloud expenditures, so if you don’t have this process set up yet, we recommend that you invest now.
Looking back on previous budgets will dilute the effectiveness of your budget, so it’s essential to put the work in and plan for the future.
4. Take profits into account
If your organization sees sales and growth, you need to take into account the increase in costs you’ll experience, and budget according to that. Looking at the bigger picture as opposed to solely the current state is essential for your IT budget.
5. Think about the use of your resources
Be smart about where you are using resources. If your IT department is handing out certain licenses or subscriptions to employees who don’t need them, this will incur unnecessary costs. Instead, ensure that only employees that actually need a certain product are receiving it. This means no additional, unneeded costs are being made.
The benefits of maximizing your IT budget
As mentioned, maximizing your IT budget unlocks a huge number of benefits for your organization:
- Reduces unnecessary cloud costs
This is the benefit most organizations hope for because reducing costs means you can focus your spending on innovations and projects that will support the growth of your organization
- Improves productivity
Analyzing your cloud usage allows you to identify the tasks your organization manages and reduce them. This gives your IT team free time to focus on more important tasks that will improve your overall business processes
- Improved efficiency
An optimized cloud enables your employees to complete processes quicker, allowing them to meet deadlines more effectively
- Increased utilization
By reviewing your IT budget and optimizing your cloud costs, you gain greater knowledge of the cloud services available to you, so you’ll be able to utilize additional services
Start maximizing your IT budget now
Arrange a free call with one of our specialists now to find out what changes your organization should be making to maximize your IT budget in 2023.Book a call