Five Ways to Achieve IT Cost Optimization

With information technology taking over the world's business sector, it’s necessary to understand digital transformation. According to Gartner1, digital transformation can refer to anything from IT modernization (for example, cloud computing) to digital optimization to the invention of new digital business models.

 The abundance of tools and technologies in the market makes it challenging for the business to identify, choose, and implement the right tools to achieve optimal results. Following the current trends can be tricky, as it can significantly impact companies' budgets. This is why implementing appropriate cost optimization techniques is important to balancing technological advancement and IT spending costs. Gartner's research2 shows how cost optimization helped businesses sustain through uncertainties like the COVID-19 pandemic. 

Technology-based solutions are always complex, as with every passing moment, there is a change in the technologies and services. The current trend is easy access to technologies like Kubernetes, containers, microservices, and cloud, implementation of shared services, and open-source databases. The dependency shifts to high-performing networks and supportive hardware systems, and the final impact is felt by the total cost. Due to the new agile way of working, we can see fast and frequent deployments. This has resulted in more complex operations and increased deployment errors. All these have further increased the complexity and cost of the technology used. 

 Faster and reliable network connections are the essence of any IT system. The most modern network advancements like 5G connectivity, SASE (Secure Access Service Edge), and IoT services, which can support numerous devices at once, can reduce dependency on multiple network systems for optimum bandwidth. But this can lead to more integrated tech solutions and increase complexity. As the complexity of a system increases with its multi-functionality, the need for full-stack management becomes more inevitable for the proper diagnosis of problems. Sticking to legacy tools for complete resolutions might seem obsolete, as these tools won't be configured for the latest updates. The advent of hybrid IT and multi-cloud systems have had a significant impact on the digital transformation journey of any business. 

 These new trends lead to challenges in the complexity, security, efficiency, and productivity of the system under consideration. Further, with a necessity for seamlessly managed systems and an increased number of applications, SLAs will get more stringent, demanding maximum reliability and uptime. Any downtime will severely impact business and must be minimized or avoided at all costs. Hence cost optimization must be a high priority, and it can be achieved by consolidation of tools, automation, optimizing performances, improving efficiency, and avoiding downtime.

  •  Consolidation: Consolidated set of tools and data can minimize the complexity and provide a single source of truth. This will ease root cause analysis. Synchronized data available in one place can reduce the effort spent fetching, updating, and analyzing this data. 
  • Automation: By automating the processes, manual intervention, human hours, and human errors are minimized. This standardization also helps in analyzing the previous patterns and behavior. By incorporating AI and ML technologies, such analysis becomes seamless and enables it to detect changes in the system and act accordingly.
  • Optimization: Optimizing the expenses, i.e., to spend the right funds for the right purpose. By identifying the appropriate hardware and network requirements, optimal capacity planning, and accurate forecasting. This leads to expenses being managed well, and the right investments are made.
  • Efficiency: Improving the whole system's efficiency by delivering better response and resolution time is a key feature. We can auto-remediate common issues with the AIOps capability incorporated in the alert engine. Enabling tools to provide a dashboard view and drill down capability to easily identify root causes eases the resolution process and tackles infrastructure health issues.
  • Avoidance of downtime: Any runtime error in the individual component can impact the complete system because of the high inter-dependability of these components. For smooth and uninterrupted functioning of the system, the applications, websites, databases, infrastructure, and networks must be up and running with no breaks. A small interruption in any components can lead to downtime of the system, resulting in heavy financial loss, integrity risks, and a negative reputation.

 To handle smooth and stable technology services, businesses need to identify suitable solutions, invest the right cost and effort in setting up environments, and perform diligent maintenance activities. These form the pillars of IT cost optimization. IT cost optimization is ongoing, and there should be a continuous improvement process. You can consider bringing in a partner like SolarWinds to help you in your journey of cost optimization3. We can help you rapidly realize the value locked up in your technology investments. Our customers have removed an average of three tools, reduced IT incidents by 22%, and reduced MTTR by 23%. To learn more, watch our webcast on IT Tools consolidation4.

 References:

  1. https://www.gartner.com/en/information-technology/glossary/digital-transformation
  2. https://www.gartner.com/en/insights/cost-optimization
  3. IT Cost Optimization Solutions and Reduction Strategies | SolarWinds
  4. https://www.solarwinds.com/resources/webcast/tool-sprawl-justifying-monitoring-tool-consolidation-for-hybrid-it-environments
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