Tag Archive for 'Information Technology'

12 Ways to Cut your IT Costs

bMighty.com recently released a slide show on 12 Ways to Cut Your Company’s Tech Costs Now!. While informative, I don’t like the slide format, so here is the meat in a more palatable list:

  1. Bring all your printing together. Use cheap multifunction printers to save desk space and repair costs.  Many of these devices can be used as network printers.
  2. Explor alternative Internet access. Rather than pay for expensive Internet connections that are backed by Service Level Agreements, consider a cable connection that is more consumer grade.  The consumer service may be faster than a T-1 and the lack of the SLA may not be an issue compared to the cost savings.
  3. Dial-in telephone alternatives. VoIP alternatives like Vonage and Packet8 may reduce your phone bill, but computer-based options like Skype and Gizmo Project can slash them to ribbons.
  4. Embrace the OFF switch. Most electronic equipment continues to use power even when switched off.  The power converters (bricks) plugged into the walls continue to consume electricity even when the device is switched off.  With the proliferation of devices, the drain on power adds up.  To conserve, shut down all equipment and then disconnect it by switching off the surge protector or unplugging the devices.
  5. Kick your Costly Mobile Connections. Avoid paying for multiple Wi-Fi connection subscriptions.  Try wireless broadband or a combination service like  iPass.  Keep the subscription linked to your laptop only.
  6. Consider exchanging Exchange. Do you need the free-busy functionality of exchange?  If not, consider a hosted e-mail only account like Gmail.  If you still do, you can move Exchangeoutside your firewall.
  7. Small-Size your office. Have a portion of your staff working from home so that you can reduce the number of offices you need to rent, furnish, heat and power.  Those in the offices can use shared or any of the available desks.
  8. Toss your equipment.  Move your IT infrastructure into the cloud.  Whether you move your existing applications to remote locations or adopt remote applications entirely, you’re likely to reduce equipment, software licensing, energy, and IT support costs immediately.
  9. Know what you’re spending. Analyzing your bills is essential if you are to understand what you are paying for and then make smart changes.  Start with your phone bill.  If you can’t make heads or tails of the charges, consider hiring an auditing firm that specializes in this area.
  10. Get what you need for free.The freemium business model is alive an well.  Make use of it.  Open source applications are getting better all the time and are available in nearly every software category.  Don’t pay for software until you have eliminated the open-source alternatives.  Many on-line services such as Google Docs and Zoho also provide free versions.
  11. Share your marketing efforts. Partner with companies that have complementary products or services and share the marketing costs.
  12. Shatter your Windows dependence.  Linux has come a long way and is now a low-cost alternative to the Windows desktop operating systems.  Some of the most popular Linux migrations include Xandros, Ubuntu, and Kubuntu.  Consider it when you next upgrade your systems.

Alternatives to Layoffs

If you are preparing for the downturn by cutting costs, consider the advice of Mike Elgan. In his article on “Three Ways SMBs can Survive the Economic Meltdown“, Mike highlights three alternatives to layoffs that can help reduce the overhead costs of running a business:

  1. Send people home. Companies often consider transport and associated costs as included in employee pay. Consider cutting a portion of this pay and let employees work from home.
  2. Use all the on-line tools to travel virtually and collaborate without actually leaving home.
  3. At the extreme, consider closing your office and becoming a Bedouin organization.

I like these ideas but I have to ask, why wait for a downturn?

Open Source Software: an Inferior Good

Image from “Romance gets a market correction”Please have a read of Steven Vaughan-Nichols’ blog Lets Talk Cheap Software. The comments are especially good.His point is that, in these turbulent times, expensive software licenses and contracts are not the place to put your money. If cash is now king (but hasn’t it always been?) it is better to trade effort for a product than cash. With open-source software, their is little cash outlay but you do have to spend the time to learn how to use it.

Like most inferior goods (I’m using inferior in the economic sense - see wikipedia definition here), open source software may not be seen as an attractive option when times are good. When you feel rich, you have options. It is easy to throw money at a problem and buy the expensive stuff and the consultants to install it. On the other hand, when times are bad, throwing money may not be an option and is likely a dumb move in any case. Its in the bad times that open source software is an especially attractive choice.

This doesn’t mean that you have to put up with something less, just something different. An attitude adjustment is required. Like in the article in The Globe And Mail today “Romance gets a market correction“, don’t worry that because you can’t afford expensive dinners any more, your marriage will suffer. If you think back to when you were young and at the beginning of your relationship, those were happy times. “You were pretty close to broke, but you were having fun.”