The start of 2021 showed a glimmer of hope with vaccines being distributed state by state. This has helped the stock market become stronger and slowly recover with schools now returning to session in certain states and countries.
Investors are starting to feel more confident which is good news for the economy. The US government has also committed to another stimulus package for its people and unemployment numbers are slowly but surely improving.
No matter the health of your company’s balance sheet, it is important to initiate proactive IT vendor hygiene to ensure your company can optimize technology costs and reduce vendor risks.
Coming out of the economic slowdown in a position of strength, able to invest, innovate and increase market share when CFO purse strings are fully loosened should always be the goal.
CxOs will care just as much about costs as they do speed during this economic climate. Rest assured, IT suppliers will continue leveraging customer reviews to engage with customers, protect their IP and help make up for lost revenue from traditional sales and partner channels.
Not having a good handle or insight over your vendor deployments can put you in an unfavorable position when undergoing a license audit, true-up or contract renewal. These are scenarios that are best avoided especially during uncertain times.
Lower Your IT Contract Exposure
Don’t wait for your next contract renewal or license deal, as you’ll have less commercial leverage. Begin by prioritizing your high-risk vendors, but don’t forget about the tail spend suppliers, who may become more opportunistic than the mega-vendors.
Partner with your SAM team or a viable 3rd party to measure your software installations and usage, reconciling with your contract/purchase entitlements.
Find out your software compliance risk areas, along with any opportunities to right-size your IT environment through unused software and support. Ensure you understand your deployments and future needs.
Then, create a playbook and proactively reach out to suppliers. After all, they want to preserve the relationship with your company and be in a position to mutually prosper when business conditions improve and travel restrictions are entirely lifted.
Utilize IT Vendor Hygiene
Address your cloud suppliers with a similar approach. Check your computer and storage workloads. Review application demand with key stakeholders, and if you anticipate a slowdown over the foreseeable future, decrease your public cloud sizing which can lead to immediate IT OPEX savings.
Don’t be shy to utilize the elasticity benefit that is often touted by public cloud vendors (e.g. AWS). Conversely, you may see a spike in your public cloud usage due to the growth in your remote workforce – for example, companies like Salesforce and Microsoft have implemented permanent work from home policies for the unforeseeable future, which could significantly impact your cloud computing needs.
This sounds great and all, but you may not have the time, resources and/or budget to perform this necessary due diligence or IT vendor hygiene. Given the ongoing COVID-19 pandemic and its impact on the global economy, your leadership will listen to any possible cost-cutting measures to help “keep the lights on” and maximize ROI on technology investments while faced with new challenges to grow the business in the adjusted norm.
Contact us today to learn how you can start reducing your IT costs: email@example.com.