6 Ways Businesses Waste Money on IT

March 10th, 2023 | Best Practices

Businesses of all sizes rely on technology to support their operations, but not all IT investments are created equal. In fact, many organizations waste significant amounts of money on IT, often without even realizing it. Here are the top ways businesses waste money on their IT: 

6 Ways Businesses Waste Money on IT 

Overbuying technology 

Businesses often purchase more technology than they need, with the intention of using it in the future. However, this often results in unused and outdated hardware and software that becomes a costly burden. Not to mention, IT technology is constantly evolving and improving, and what is cutting-edge today may become outdated tomorrow. Overbuying technology means that you may end up with equipment or software that becomes obsolete quickly, which can result in a significant waste of money. 

Poor licensing management 

Organizations frequently fail to keep track of software licenses, leading to overspending on licenses that are no longer needed or are not being used. Understand what you actually need to do with each of your tools, maybe you’re spending money on premium licenses and you’re not even using the added features. Work with a rep to make sure you’re taking advantage of group discounts or other offers.  

Not leveraging cloud computing 

While cloud computing can save businesses money in the long run, many organizations continue to spend money on expensive hardware and IT infrastructure, instead of using cloud-based solutions. Not leveraging cloud computing can result in missed opportunities for cost savings, increased efficiency, and improved security. By leveraging cloud computing, you can optimize your IT resources and reduce costs, while also improving productivity and accessibility for your employees. 

Many businesses are stuck on antiquated physical servers because they don’t want to go through the hassle or cost of upgrading their IT and moving to a modern, cloud-based solution. If that’s your company, it’s time to rip off the band-aid – it will only get more difficult the longer you put it off. 

Lack of standardization 

Without standardization, organizations may end up with multiple versions of software and hardware that are not compatible with each other, leading to additional costs and inefficiencies. Standardization can help to reduce complexity, increase efficiency, reduce training costs, avoid vendor lock-in, and reduce integration costs. By standardizing systems, processes, and technologies, organizations can achieve greater consistency and streamline workflows, resulting in cost savings and improved productivity. 

It can be overwhelming for businesses with internal IT to build an efficient and standardized IT experience. One of the top reasons businesses move to outsourced IT is to get help with standardizing their technology and IT procedures. 

Neglecting cybersecurity 

With the growing threat of cyber-attacks, businesses that neglect cybersecurity can end up spending a lot of money to recover from attacks and protect against future threats. By investing in cybersecurity measures, organizations can protect their assets and customers, avoid costly incidents, and maintain a strong reputation, resulting in long-term cost savings and business success. It’s counterintuitive but spending on security proactively will save you a lot of money in the long run. You will eventually get breached, and if you haven’t done any preparation, it will cost you significantly. 

Underestimating the importance of IT maintenance 

Regular maintenance and updates are essential for keeping IT systems running smoothly and efficiently, but many organizations neglect these important tasks and end up spending more money on repairs and replacements down the road. Your IT team needs to be proactively managing your technology, keeping everything current and optimized for your current needs. One of the first signs of your IT slipping is the lack of proactive planning and maintenance. 

By avoiding these common mistakes, businesses can make the most of their IT investments and ensure they are getting the most value for their money. To ensure that your IT investments are being used effectively, it is important to regularly assess your technological needs and make informed, cost-effective decisions. 

Saving money and preparing for a recession go hand-in-hand. Take a look at the 7 ways you can prepare your IT for a recession