How to Reduce Cost of Your Enterprise Software

Enterprise software works. However, as companies make their transition into enterprise software, the total cost of ownership or TCO becomes the sole data point businesses want to understand. This may seem like an easy number to calculate, but in reality, companies often face unexpected costs related to escalating support expenses, lengthy rollouts and vendor lock-in. Regardless of your particular business area, here are some tips you can take to cut costs of your enterprise software.

Assess Your Infrastructure

This might sound obvious, but make sure you have a good understanding of your existing infrastructure. Review business structure, map current processes and investigate software metrics. Most importantly, gain insight of the employees that interact directly with the software to identify unused systems. Due to virtualization, many companies run applications that haven’t been used in ages. Find these systems, and take action by optimizing or removing them.

Outsource

There is still quite a bit of bias against software outsourcing. The truth is, outsourcing makes sense once you have found the right vendor. Think about software maintenance and support. Why not outsource this type of work to third-party providers, reserving your valuable IT staff to mission critical tasks?

Move to Cloud

Cloud has revolutionized the way businesses operate. Industries that were once dominated by large and expensive legacy applications are finding value in flexible cloud solutions. When implemented properly, cloud computing can reduce your IT budget. Consider this: zero capital costs, reduced spendings on IT infrastructure, savings associated with data storage, maintenance, and resources. Not to mention long-term benefits such as scalability, resilience and speed.

Go Open Source

The holy war on open-source software is long dead and buried. The reason is simple, the world isn’t black and white and there are open-source technologies that offer great value to businesses. There is no universal truth about open source, it’s neither better nor cheaper – it’s just different. Invest time in investigating what open source has to offer to your specific line of operations. Understand how you can benefit from it financially, keeping in mind that maintenance has a cost.

Optimize Disaster Recovery

There is a fine line between mitigating risk and overspending. Analyze how much you’re investing in disaster recovery. If you have the excessive amount of data centers around the world, you might consider cutting down a bit for quick cost savings. On the other hand, if you haven’t invested enough, consider doing it now before it’s too late. You can always reach out to consulting agencies who will give you a hand in finding that perfect balance when it comes to disaster recovery.

Total Cost of Ownership

TCO is a process often neglected by companies. Well, it shouldn’t be. What’s important is that TCO helps companies uncover hidden costs across their software assets. These costs are easy to overlook but they can be very large and real, nevertheless. Communicate the cost of the system to your business counterparts and ask for their input in identifying ways to reduce those costs.

TCO is a process often neglected by companies. Well, it shouldn’t be. What’s important is that TCO helps companies uncover hidden costs across their software assets. These costs are easy to overlook but they can be very large and real, nevertheless. Communicate the cost of the system to your business counterparts and ask for their input in identifying ways to reduce those costs.

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