The need for cost optimisation in 2023

16 December 2022
4 minute read
Best practice

The need for cost optimisation in 2023

16 December 2022
4 minute read

This article was written by Rich Gibbons, ITAM Review, and Becky Trevino, Snow Software.

Cost optimisation will be a top priority for businesses around the world in 2023. With macro-economic pressures exerting influence on budgets and forecasts, the ability to reduce costs and/or increase the efficiency of IT spend is of paramount importance. 

To ensure a holistic approach and to give the best opportunity for success, all aspects of IT should be analysed and optimised as much as possible.  

Current economic climate 

Across the globe, we are experiencing soaring inflation, rising interest rates, and increasing energy costs; the pressures on a business are several – and severe. Coupled with the fact that businesses are not looking to remain stationary but must instead continue to grow and adapt through this period of turmoil and change. 

No organisation likes wasted spend, but it’s often the case that during times of growth, policies and procedures may not always be as strict when it comes to optimizing spending across the IT portfolio. With budgets being squeezed and the cost of borrowing increasing, reducing bills and avoiding spending more money than necessary are key executive priorities for 2023 (and beyond). Alongside this, the multiple price increases announced by software vendors such as Microsoft and IBM are adding further pressure to corporate budgets. 

How can ITAM be a strategic pillar in this climate? 

ITAM is well positioned to help achieve these goals across the business, with visibility into various aspects including: 

  • On-premises software
  • SaaS 
  • IaaS & PaaS cloud 
  • End user hardware  
  • Datacentre hardware 
  • Support & services 

But first of all, there needs to be communication between ITAM and the executives who are driving the organization. Understand their objectives and align as many of your projects and initiatives to help deliver them. It may even be work you already have planned, simply presented in a different way to demonstrate the connection between IT Asset Management and executive objectives. 

Furthermore, ITAM can help achieve the necessary improvements to cost optimisation and spend efficiency whilst also moving the needle on other corporate goals, including an increased focus on sustainability and enhancing the employee experience for those working both in the office and remotely. 

Key Takeaways 

With a looming recession, taking control of IT spending is a key focus for business executives across all industry sectors. Reducing waste and improving the efficiency of spend will have a real, measurable impact on the overall health and success of the organisation. Giving them the data and insights into: 

  • what software is being paid for – perpetual and subscription 
  • how it is being used across the estate – both on-premises and cloud 
  • where price increases are expected at contract renewals 

will enable faster, more accurate decision making. Doing this will help demonstrate the clear relationship between ITAM and the successful achievement of corporate goals. Identify the areas where you can support your leadership and start building your 2023 plan now. 

Explore and get a head start in 2023 

  • Register here for our on-demand session with Snow Software’s CIO, Alastair Pooley, to get insights on the top objectives facing C-level executives in 2023 
  • Tune into our new podcast with Snow Software’s EVP of Product, Becky Trevino to acquire a practical playbook on cost optimisation 
  • Download our Infographic with key takeaways to read through the main areas for ITAM to focus on in 2023 
  • Download your free copy of the Snow Software IT Priorities Report  to get a head start in 2023  

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