In today’s marketplace, organizations have become increasingly reliant on IT to improve business productivity and customer retention.  At the same token, many faces with the dilemma of costly legacy IT systems.

The current economic climate has coerced many companies to find ways to reduce IT costs.  For many companies, this can mean a massive undertaking and challenge presents a challenge for IT departments with budgetary restrictions.  With traditional legacy IT systems, cutting costs on IT budgets could mean making do with aging in-house infrastructures which impede business productivity and customer demands for new technologies. The good news is there are ways you can reduce IT costs while gaining access to the latest technologies.

Virtualization

Virtualization has been rapidly gaining traction in the IT industry and with organizations that are looking to reduce IT costs.  It represents a viable and cost-effective solution since it can utilize the current existing IT resources while consolidating server resources and reducing the need for hardware.  There are several ways to reduce IT costs using virtualization, and one of the primary methods is through server virtualization.

Server virtualization delivers significant cost savings for companies since it reduces the need to purchase new hardware. Server virtualization is the process of consolidating physical servers and resources to simplify management and maintenance while avoiding server sprawl and wasted IT resources.

It also allows companies to save on energy costs, reduces the amount of space required for IT equipment, and contributes to reduced cooling expenses.  In the event a system needs additional processing power, flexibility and scalability allow for easy addition of resources to assist with the extra workload.  Virtualization also allows you to add or subtract resources as your business requirements change.  It is something that is very difficult to achieve with legacy IT systems.

The other type of virtualization that reduces IT costs is desktop virtualization which allows end users to access many different applications simultaneously using a web browser.  The service provider assumes the responsibility for IT monitoring and maintenance while you pay only for the desktop applications you need. It is a real plus for businesses that have limited IT infrastructure and must plan for customized business applications.  It also ensures that the end user has access to technical support 24/7 via a remote access provider.

Web-Based Applications and SaaS

Changing to web-based applications reduces IT costs by using SaaS (Software as a Service). It provides access to customized SQL configurations and software applications while the services provider handles all of the server upgrades and other maintenance requirements. It also reduces licensing costs and energy expenses plus, deployment is much quicker than the implementation in several phases which can sometimes take months.

Using SaaS allows IT personnel to focus on other important IT initiatives instead of spending endless hours on IT maintenance and putting out fires.

Software plus SaaS

You can also opt to maintain a few software applications on the premises while making other infrequently used applications accessible through SaaS. Many organizations are cutting costs by combining hosted services with software that runs locally. It allows the end users to have access to web-based applications while utilizing the software that installs on a local device.

Software plus SaaS represents an easier solution for both the end user and IT professionals. While reducing costs by combining in-house software with web-based applications.  It enables flexibility and scalability when it comes to the development of applications that quickly adapt to changing business requirements

Vendor Consolidation

Most companies deal with multiple vendors to meet IT requirements. This increases costs associated with maintenance and management and results in complex procurement processes. When you work with one services provider, you can expand or reduce IT as your needs change. A services provider can also help you with choosing technologies that are appropriate for your business goals and objectives. The result is significantly reduced IT costs, simplified management and procurement, and improved business efficiency.

Service-Oriented Architectures for Developers

Deploying a service-oriented architecture can also help to reduce IT costs while increasing company productivity.  Because an SOA utilizes common services across a variety of applications, it makes business activities more functional. While eliminating dependency on local resources.  This type of architecture also provides a way to ensure that all the correct services are provided across the board and within the company.

A service-oriented architecture also allows for more focused roles for developers. Since the architecture contains more than one layer that requires a specific purpose for each developer.  It will enable developers to specialize in a skill set which helps to increase productivity.  Also, by providing a particular focus on a layer, maintenance tasks are reduced. Because it is easier to locate a defect and make the necessary corrections.

There are many other methods that companies use to reduce; IT costs each of which depends upon the infrastructure that the companies use to manage and implement IT services.  As cloud computing comes to the forefront, many other solutions are emerging on the cloud market. Which help companies to reduce IT costs.

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