Wednesday, June 04, 2014

Managed Services...Sensible Ways to Reduce IT Costs

Generally when executives need to bring down organizational expenses, they will use the same techniques: lay off lower-level employees and downsize or eliminate underperforming departments. The one department that is always off-limits is the information technology (IT) department, as this configuration is absolutely critical to the company's long-term success. Companies should not be afraid to adjust the budget of their IT departments, as there are ways to cut costs without reducing productivity. One way to cut costs is by using server solutions such as server management, managed servers, and collocation to reduce costs. Server solutions involves saving money by decreasing the number of machines that are kept on-site. If the company does not do a comprehensive study before choosing which machines to remove, it could end up being a bad choice and affecting the firm's technological capabilities. To keep from making poor decisions, organizations are better off leveraging the experience and expertise of a managed services firm. These businesses can recommend a solution that does not affect the company's operations based on their extensive knowledge of IT infrastructures, and recommended solutions could include:

Utilize Servers More Efficiently

All servers are capable of handling a certain workload, so when companies fail to take advantage of a machine's capabilities, they are throwing money down the drain. A managed services firm will look for ways to consolidate existing components by assessing current usage levels and making recommendations. By consolidating programs and data, the company will free up space in enough servers so that individual server utilization goes up and the company is able to go longer before it needs to purchase new machines.

Upgrade Older Servers

Upfront costs are high whenever a company decides to replace older, outdated servers with state-of-the-art models. While these costs can often be enough to keep companies from making a switch, the truth is that upgrading older servers saves the company money in the long run, as newer machines are more efficient. A new machine is usually capable of handling the workload of 2-3 older machines while utilizing less electricity. When a managed services firm helps the company identify inefficient machines and procure replacements, energy costs and tech support costs are both reduced.

Reduce Virtualization License Costs

Companies that implement a virtualization configuration are able to reduce data storage costs by accessing and running applications over off-site servers. Since companies pay a monthly or annual fee to run a virtualized network and then pay an additional licensing fee for crucial applications, they sometimes end up spending more money in this configuration. A managed services firm will provide server solutions that revolve around investing in physical machines, so that the company can eliminate licensing costs by hosting hardware and software in-house.

When a managed services organization is hired to provide server solutions for a firm, they might recommend the strategies mentioned above or will come up with other ways that the company can reduce costs without compromising efficiency and performance. Atlanta firms that are serious about cutting IT costs should reach out to one of these firms today.

Corus360 is a technology consulting and solutions company helping organizations solve business problems, reduce costs and enhance efficiency through infrastructure solutions, IT managed services, and more. To read more, visit

Article Source:

Labels: , , , ,


Post a Comment

Links to this post:

Create a Link

<< Home