Cloud and solutions-as-a-service can help businesses address many skill gaps staff issues. Although sometimes it may be e costly, cloud solutions as a service significantly reduce staff’s time spent handling low-value tasks. IT staff can strategically allocate resources to improve innovation and business initiatives, away from day-to-day maintenance.

Consolidate and Simplify Infrastructure

The goal is the standardization and consolidation of your business infrastructure. Suppose you spend too much time managing things as opposed to adding value to the business. In that case, you must consider these few solutions:

  • Standardization: Standardization caters to business needs. But generally, standardizing your desktop and application platforms reduces support time for staff significantly.


  • Hyperconverged Infrastructure Appliances: Enhance the simplification within your network, computer, and storage systems. A single hypervisor can support 100 to 150 production servers and provides up to 100TB of storage.


  • Multifunction Security Appliances: Simplify your security infrastructure by leveraging unified threat management infrastructure. This method of SaaS cost optimization leverages appliances robust enough to handle the needs of most businesses.

One key factor critical to driving innovation is a strategic approach to cost optimization. This continuous, business-focused discipline maximizes business value while reducing costs.

Shared Services Implementation

Businesses can leverage IT shared SaaS services across business units to drive economies of scale and enhance cost optimization.

Adopt a Cloud-First Policy Where Necessary

A cloud-first policy offers many capabilities, including software as a service, that increase agility, flexibility, and scalability for both private and public clouds. Businesses can experience immense SaaS cost optimization. Companies can experience enormous SaaS cost optimization efficiencies over time.

You can also enhance cost savings by performing strict cloud governance to monitor infrastructure and application costs.

Consolidate Enterprise Data Centers

The cost of maintaining traditional data centers is increasing significantly; hence, some businesses move to migrate to datacenter switching architecture. Datacenter modernization and consolidation efforts help improve cost savings.

Rationalizing, Standardized Enterprise Applications

Businesses can further improve SaaS cost optimization by standardizing and rationalizing application portfolios to reduce and control operational costs.

Financial Transparency Practices

To establish IT financial transparency, all stakeholders must understand how IT services are delivered and the associated costs for IT operations.

Including CFOs and finance, experts should associate general ledger entries with technical and related business services costs. Transparent enterprise spending enables businesses to deliver business value and optimize costs.

On Demand-side Spending

Most enterprise expenses are derived outside of IT, significantly increasing the opportunities to optimize IT spending. You can evaluate business resources, processes, and the standing capacity to highlight you can improve productivity and efficiency to become more effective.

Robotic Process Automation

Technological advancements like robotic process automation (RPA) and artificial intelligence (AI) improve analysis and identify business patterns. You can use the data to make informed business decisions.

RPA can help identify new business insights using real-time data to automate or augment processes that may be difficult for humans to complete.

Asset Management Practices and Evaluation

Overlooking asset management capabilities often results in increased IT operating costs. Businesses can avoid such outfalls by shifting IT asset management capabilities from individual asset tracking to corporate governance of business technology assets.

Digital Transformation Innovation

Business stakeholders must contribute to SaaS cost optimization and other technology application ideas to initiate a potential cycle of continuous reinvestment. Doing this can significantly increase visibility across business development and IT spending to mitigate redundant expenses.

Workforce Optimization

Workforce management application incentives like the automation of virtual assistants for routine tasks can immensely reduce staffing costs. Implement bots to augment the capabilities of human workers and enable a more productive work environment.


SaaS Cost Optimization Mistakes To Avoid

Most IT leaders still make some well-known common mistakes when it comes to cost reduction. Lets quickly consider some of the cost optimization pitfalls you must avoid:

Making Cuts with Unrealistic Targets

Unplanned blanket cuts make it difficult for businesses to manage cost reduction effectively. It affects the capacity to deliver required long-term cost efficiency measures across the organization.

Spend more time investigating business costs and how to deliver optimal benefits with minimized risk.

Unsustainable Behavior Change

A lot of cost-saving initiatives apply to short-term goals. Hence many companies don’t meet the set criteria. If you want to remain cost-aware, you must embed a cost-conscious culture and bring it forward during decision making.

A business should understand its cost structure

Slowing Down the Organization

Taking unnecessary steps in your business process can exhaust the resources and time needed to address business-relevant tasks. More importantly, it can negatively affect your SaaS cost optimization strategy and future growth investments.

Choking Needed Innovation

Businesses are now required to increase their capacity to address innovation initiatives without introducing high costs or wasting resources. It would help if you considered the network within your organization when addressing innovation issues.

Making investments in bringing teams from across the company to generate new ideas can be very fruitful.

Ignoring the Digital Boat

A lot of companies don’t spend what they must on digital implementation. Digital technology investments are now high-ranking business priorities, especially post-COVID.

However, many organizations are still struggling to find the right digital business transformation strategy. It’s essential to focus investments on reaping meaningful value regarding customer service outcomes.

Poor Risk Management

Consider how frequently data privacy issues manifest within businesses, and constantly think about managing security risk to mitigate any unforeseen shortcomings.

Rushing into Contracts

The final SaaS cost optimization mistake to avoid is rushing into contracts with service providers. Business leaders come to regret technology purchases because of unfavorable terms and overpriced fees. You can quickly review more valuable agreements with third-party service providers and look to gain insight into what some terms and conditions mean. And how they vary across different providers.

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