4 Important Factors to Consider for Cost-Optimized IT Infrastructure

Cost-Optimized IT Infrastructure

4 Important Factors to Consider for Cost-Optimized IT Infrastructure

The wave has changed. Many IT businesses have thrown pure cost-cutting talks out the window. The focus now is on cost optimization. Woke businesses have now realized that putting all their energies in spending less does not mean better performance for their businesses. It is more about smart spending.

What is cost optimization?

Cost optimization encompasses cost cutting but goes beyond that. Its aim is to maximize business value whilestill keeping costs in check. According to a survey by Gartner Inc., 50% of businesses choose IT technology based on its ability to realize business benefits.

That is why, when you are looking for managed IT services in Indiayou should avoid companies that impose on you savings decisions without focusing on optimization.

When you want to incorporate a particular IT technology in your business, how do you guarantee that it is the most optimal one? Below are 4 factors by which you can measure your IT technology:


  • Business value


Buying the cheapest technology or having ‘the best technology in the market’ counts for nothing if there is no business value to show for it.

What is Business Value?

Business value can be defined as the monetary or non-monetary benefits that a business gets from a certain technology. It can differ for various businesses based on their goals.

The question you need to ask is, ‘how is this technology helping me achieve goals XYZ for my company?’

There are several general ways in which you can measure business value. These include:

  • The effect that the IT system will have on your revenue, market share, and overall profitability
  • Whether the technology will increase customer satisfaction and consequently brand loyalty, customer retention, and brand loyalty
  • How it affects theshare of wallet
  • Whether the IT system increases the customer response rate
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Before you settle for a particular IT system, note down the goals that you intend to achieve with it and ensure that it can meet those goals within specific periods of time.


  • Operational risk


While operational risks are highly underestimated by decision-makers, they have the potential to waste your IT investment away.

Operational risks are business situations that could result financial losses. They can be caused by errors or interruption in operations.

There are several factors that can contribute to operational risk. These are people, internal processes, systems, and external events.

You need to identify the operational risks of a particular technology. That enables you to craft quick mitigation strategies beforehand to deal with these risks.Go for IT systems with the lowest risks any time.

Some of the risks that an IT system can expose your business to is in the area of payments, security, skills, and environmental impact.

Many businesses have lost millions of dollars within less than a year of incorporating IT systems, all because of poor risk identification and management.


  • IT benchmarking


IT benchmarking involves looking at how your peers are benefiting from a particular technology. To make a solid business case for a particular IT system, you should look for information surrounding:

  • The type of technology that your peers are using
  • How much similar businesses are spending on IT
  • The challenges that businesses are facing when adopting IT systems
  • The rate of IT adoption among your competitors and how many businesses are deeming it necessary to invest in a particular technology
  • The value that businesses are getting from these technologies compared to what they have to spend on maintenance and mitigation of risks
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Studying businesses that are already using a particular technology that you wish to adopt is critical. It helps you to create a robust business case for an IT system before making huge investments.


  • Biggest and fastest reductions in spending


As you can see, cost reduction is among the last factors you should consider when making an It cost-optimization decision. That is because a high-cost IT system can end up generating more business value and leading to lower operational risks than a cheap one.

Even so, you also need to acquire your ideal IT system at the lowest price. Consider IT systems that can register the highest level of cost reduction.

For example, IT systems can reduce costs through the automation of manual processes. Technology can also reduce costs associated with human errors. Take into account all these costs and compare them with potential returns of the IT system before you make a purchase.

Final Words

Incorporating IT purely based on cost or to follow the latest trends is no longer the way to go for modern businesses. A lot of money goes into IT investments. That is why you must ensure that these systems will generate the required returns.

When you consider the cost-effective of IT systems, you sign up for technology thatis low risk and highly valuable to your business. That enables your business to becomeoperate profitably.

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