2020 Enterprise IT Budgets: Tactical Cost Reduction Strategies
Recently, Shamrock hosted a special webinar event that was hyper-focused on 2 key things related to enterprise IT budgets:
The webinar began with our President and CEO, Paul Cooney, presenting detailed breakdowns on the main challenges faced by enterprise Finance and IT leaders when attempting to manage their respective IT budgets successfully.
Our EVP, Ben Ferguson, followed by providing immediately actionable strategies for companies to dramatically slash their TCO costs in order to help manage budgets and save jobs during these economically fraught times.
If you weren’t able to catch the presentation yourself, don’t fret: you can download the recording for free:
And for those of you who prefer a CliffsNotes version of the webinar, we’ve got you covered, too. See below…
A Four-Step Process
Whatever the size and sector of your business, there are four fundamental areas you need to be strong in if you want to strategically reduce your enterprise IT costs. They are:
- Using next gen tools for automation
- Subject expertise
- Procurement processes
We explained in the webinar how these can be broadly divided into manual/tactical activities (numbers 1, 2 and 4) and automated tasks (number 2).
We also highlighted the importance of constantly reviewing these areas. According to Moore’s Law, we can expect the capacity and speed of most enterprise networks to increase every couple of years, while the costs actually decrease at the same time. The counterpoint is that every business must put the work in order to access those benefits.
That’s where Shamrock can help. Some of the largest companies in the world have come to us for IT insights and solutions thanks to our granular subject knowledge and our vendor-neutral, infrastructure-first approach. To date, we’re proud to call 87 different F1000 companies our happy clients, whom we continue to work with daily.
In short, we have the confidence and expertise to step into any project and provide all of the tactical support you need to ensure your cost reduction strategies are successful.
Auditing: The First (and Most Neglected) Step
Having a firm grasp of exact dollar numbers is critical when analyzing enterprise IT spend, yet there are still a lot of businesses out there who don’t either don’t have access to those figures or don’t pay close enough attention to their budgets for proper analysis and forecasting.
That’s why Shamrock offers a free audit of services, so you can start your journey towards significant IT cost reductions by fully unpacking your existing costs.
As we detailed in the webinar, there are automated e-discovery tools that can slice and dice your software license bills, allocating real dollar amounts to specific offices, departments, projects and other parameters of your choosing. At the same time, you can see whether licenses have been activated, how often software is being accessed, who ordered it and many other pieces of data.
We recently used such tools to audit a specific client’s IT expenditures, which revealed an active recurring bill for software at an office that had been shut down 5 years earlier! Sadly, we see errors just like this all the time, with companies of all sizes.
Putting the Machine to Work
E-discovery tools for software licensing are just one resource that we can help you add to your automation toolkit.
Another is automated mobile cost optimization. We recently used such a tool to help a company reduce their mobile line costs by 40%, even taking into account the cancelling and reactivating of lines based on remote workforce capacity predictions.
We also leverage automated cloud cost reduction software, which will save you a ton of money on analysts and consultants. Anyone who has seen a cloud services bill will understand how optimizing this spend is not a task made for human minds and is instead an area that AI and ML were created for.
You may have to manually haggle with vendors and have those hard conversations with wasteful departments, but e-discovery tools and other automated software are the true heroes when it comes to finding the most cost efficiencies within your IT budget, while also offering the capability of peering into the darkest recesses of your shadow IT network and displaying all the data in a dashboard that actually means something.
The Benefit of RFPs and RFQs
One question we always get is, “Is an RFQ enough to deliver value to my company, or should I go down the formal RFP route instead?” The answer will depend on your unique enterprise IT requirements, which Shamrock can advise you on.
Yes, RFPs can be cumbersome and overly formal, but they do introduce necessary checks and balances into your budget and can uncover the most significant cost reductions. On the other hand, a tactical RFQ might make more sense if you need to secure a quick win that ultimately saves jobs (and maybe even your entire company).
Get Your Budget Back in Control – With Shamrock’s Help
If you want an example of the kind of TCO savings you could be looking at as a direct result of working with Shamrock, let’s take a look at a sample playbook:
- 50% spend reduction by replacing on-prem software with SaaS equivalents
- 38% savings on SaaS licensing through automated e-discovery tools
- 35% public cloud license savings by using reserved or spot instances
- 37% savings through an effective telecoms RFP
- An immediate 70% reduction on on-prem infrastructure by migrating relevant services to the cloud
Shamrock’s primary mission is to save money for our clients. But on a deeper level, the success we’ve had with our cost savings initiatives ultimately saves jobs and the families who depend on that income.
To find out about how we can support your business, please reach out to Ryan Reeves at [email protected]. Or, you can give us a call on (310) 955-1600.