Business is spending a lot on IT. Gartner research company predicts that by the end of 2021, overall global IT infrastructure expenses should grow by 8.4% and reach $4.1 trillion.
Obviously, any business would like to pay less for the same results.
In this article, we will tell you about the main ways to optimize IT infrastructure spending.
First of all, to spend less, you need to clearly understand what you’re spending your money on.
All spending can be divided into two categories: CapEx (capital expenses—one-time) and OpEx (operational—recurring). The expenses will differ depending on whether you’re using your own equipment or leasing the computational capacities.
If you’re leasing your capacities from a cloud provider, there will be less expenditure items.
In order to understand how spending can be optimized, the first thing to do is a good analysis of all the infrastructure.
IT audit is often used to find problems in the system and unnecessary spending items. But even if you’re 100% sure that everything is organized perfectly well, a detailed check will help you find things that can be optimized first.
Instead of running the audit by yourself, we recommend that you hire independent experts.
The experienced specialists will be able to run a really deep and complex analysis and create a plan to optimize IT spending.
The most important thing here is finding a truly reliable auditor. In looking for one, definitely check for ways they can confirm their expertise and examine their clients’ reviews.
Many experts recommend transfer to the cloud. 94% of CTOs who took part in the survey published by TechRepublic claim that migration to the cloud cuts expenses on infrastructure installation and service. And 47% of the respondents also noted that cloud technologies helped their companies to cut IT infrastructure expenses by 30–50%.
1. No hardware downtime. Usuallyы, when a company uses its own private servers, it has to buy more than it normally needs: the extra capacity will be useful in case of sudden breakdowns or traffic surges. However, for most of the time, the equipment is idle, and the company still has to invest in its maintenance.
In the cloud, though, you can lease precisely the amount you need and only pay for the resources that you actually use. In case of a sudden traffic surge, you can quickly order extra capacity, and then turn it off when it becomes unnecessary.
2. Easy scalability. If you use your own infrastructure, you’ll have to buy new equipment as the project grows. It might take you months for your infrastructure to be delivered, installed, and set up. If your business is growing fast, you might just not have the time: there won’t be enough resources, your services will start working worse, and you’ll lose a part of your clients at such an important stage.
In the cloud, if the project is growing quickly, you’ll be able to grow the computational capacities just in a couple clicks. The services will always be available, even with a big influx of traffic. Your clients will be happy, and your business will keep growing and remain profitable.
3. Provider takes care of updating the equipment. With your own infrastructure, you have to manage timely updates yourself,—and with the cloud, it will be the vendor’s business.
A reliable cloud provider regularly updates the equipment. The system won’t have any outdated, low-efficiency equipment that only increases your IT expenditures.
4. Lower expenses on the team. The cloud provider takes up some of the tasks that otherwise would have to be done by your own employees. It manages the equipment, takes care of its condition, updates it from time to time, and might also manage other technical tasks. Everything depends on the company and the selected services.
Your team doesn’t have to spend time on that and can focus on other, more important things to do.
5. Access to cloud platform tools. Besides computational capacities, many providers also offer other tools useful for your business.
These tools will help you do certain tasks quicker (for example, speeding up the development and market launch of new products), thus making your work more efficient and allowing you to earn more profits.
6. Easier to control the expenses. Switching to the cloud lowers the number of expenditure items in general. You don’t have to rent space to store the equipment or pay for the power. The updating and maintenance are covered by the provider. Out of the many factors influencing IT expenditure, there are only service payment and salaries of your specialists working with the cloud.
The less expenditure items there are, the easier it is to control them.
In order to use the cloud resources as rationally as possible, the provider should offer convenient tools to organize the infrastructure and manage expenditures.
We tried to make sure our clients can easily manage computational capacities, follow their consumption, and plan the budget better.
In our cloud, you’ll be able to distribute the computational capacities by projects and follow how much each of them is consuming.
It will be easier to make sure each department has enough resources and not to overspend.
You’ll be able to provide different access levels to different members of your team.
You’ll be able to get the statistics of resources consumed, manage your expenses, predict your load, and correctly plan the budget for the future.
You can also understand how much resources you’re using up and how much you’re spending on it with customer reports.
You can check the general statistics or the reports for individual projects. The indicators can also be sorted by region or type of cloud services (like individually checking the expenses for all virtual machines or IP addresses).
Additionally, our Cloud is:
We’ve already helped many companies reduce expenses and time-to-market. For example, one of our cloud clients is Wargaming, the company that used our cloud tech to speed up product testing and work with partners more efficiently.
Similar routine tasks take up your employees’ time, not allowing them to focus on what’s really important. That slows down the operation of the team, reduces its efficiency, which means you get less profits.
To change this situation, one can use a variety of tools. It’s much easier to do in the cloud.
As we’ve already said, our cloud can be managed via API. Your employees will be able to automate routine operations and tend to more important business.
Besides, for some of the tasks, the solution has been already found. We’ve already mentioned our AI platform. So, for example, if you’re developing AI-based software, you don’t have to design your solutions from scratch—you can just connect an AI platform and use ready modules for machine learning, which will reduce the development process severalfold.
AI platform is just one example. There are a lot of software solutions and templates which will allow you to take some of the routine load off the team, speed up the development, make work with data easier, and so on.
Yes, many of these services are not free. But the sum you end up saving might be much bigger than what you spend on the service.
So, you’ve audited all the systems, moved to the cloud, automated the processes, and sorted everything as much as you can. Now your IT infrastructure expenses are supposed to go down.
But everything on the market keeps changing. New tasks appear, your business grows, and your infrastructure grows with it. Controlling expenses, optimizing them, and making sure all resources are used rationally is not so easy, especially when you’re growing fast.
To avoid the problems and the unnecessary expenses, you need to entrust IT infrastructure management to highly experienced specialists.
But it might be hard to find real professionals, and you might end up having to open a whole department for reasonable management. You will have to find employees and provide workplaces for them. All that takes time and money.
There’s another option, simpler and more profitable: outsourcing all IT infrastructure management.
What will it do for you?
The priority here is finding a good contractor. To make the right choice, study the company’s cases and check the reviews. Find out what services you will receive, and what guarantees you can be provided.
You can choose various sets of services, depending on your needs: from colocation (placing your equipment in our data centers) to full outsourcing.
Tell us about your project, and we’ll select the best solution for you.