Business technology money saving tips

To run a successful business, you must ensure your costs are under control. The costs of business technology is no different. Even trying just one or two of the money saving tips below could translate into immediate savings for your bottom line.

1. Ask for a discount from your software vendor. You can't save money on your business technology if you don't ask. Even a 5% discount can add up.

2. Use open source and free products. There is often an open source equivalent for most products on the market. Examples include:

Operating systems such as Linux

Productivity Suites, e.g. OpenOffice

Reporting, e.g. Pentaho or Jasper

Document Management e.g Alfresco

These business technology tools often have almost 100% of the features of comparable commercial solutions, but at a fraction of the cost.

3. Use web-based tools with a low or free per user or per usage pricing. Some of these tools are free, such as spreadsheet and word processing applications from Google Apps. For some such as BaseCamp for Project Management you pay a small subscription fee.

4. Volume licensing can provide quite dramatic money savings. Generally, the rule is to not buy software individually if you have more than 5 computers to buy for. It’s worth talking to software vendors about your business growth plans and savings potential for bulk purchases.

5. Only pay for what you need. Understand for what purpose you’re using a particular software package. Unless you’re a power user, don’t bother with the Premier or Pro version when the Standard version will suffice.

Here are some money saving tips for reducing the total cost of ownership

Get expert, independent advice when choosing a software solution or having software custom built. Sometimes the cheapest business technology solution isn't always the best and may cost you significantly more in the medium term as an incorrect or flawed solution may need to be re-worked at cost.

Evaluate Hosted solutions for your software. Hosted software solutions are accessed from within your business but are run on servers at your IT provider's data centre. Your IT provider can spread the cost of the staff who undertake the ongoing patching, upgrading and maintenance of servers across all of their clients.

Specialise. A specialist in a particular field of IT is often two to ten times more effective than a generalist. For some products or business systems; even at high-end rates, an expert may be more cost-effective as you are not paying for a generalist's learning curve.

Use a Content Management System (CMS) if you have text, features or ads which regularly change on your website. For example, you shouldn't be paying for web-developer time to add new products to catalogues, release company news or add newsletters and blogs.

Backup your data. Do it regularly and do it off-site. Having data backed up means your business will survive even if your computers or business premises do not. A forensic recovery of your business data off a damaged hard drive can be up to ten to twenty times the cost of replacing the hard drive itself. Remember a mantra I use here at Dedication Group: hard drives are cheap; data is expensive.

What money saving tips do you have for getting the most bang from your IT buck? Share them via a comment.

Greg Pritchard is dedicated to making your software and systems contribute to your business bottom line. He founded Dedication Group, an IT & Management Consultancy helping companies deliver on their IT Strategies.

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You not just need good bang for your buck. You also need to get the right level of bang. It's really easy to go overboard on the applications, but do you really need it. So often I see clients with more bang than necessary for what the y are trying to achieve. Denise Maffey CA from Kumeu NZ
Hi Greg, thank you for this informative article about saving money on business technology. It's a great article because most of us have to spend a substantial amount of money on business technology. You raised the point about Content Management Systems. Can you suggest a good Content Management System for websites? You mentioned a number of open source and free products, are there any good CMT's that fall under that category? Thank you. Lucinda Lions from Sydney, Australia | Read my articles
Thanks, Greg, for a really valuable article!
I was impressed recently by a friend who uses a laptop and a headset and who operates his successful global business with all apps hosted and Skype giving him his voicemail and telephony!
Your article, Greg, makes me think I'm in the ark using a desktop and bought software - maybe I should team up my BB with a notebook (10-12" screen) for maximum flexibility and portability?
p.s. I do have a portable drive for backups. Grant Hyman from Sydney | Read my articles
Hi Greg, please cancel my question. A kind fellow reader has notified me that the document management is the same as content management. And Grant, you think YOU'RE back in the ark. Excuse me, but I'm late for counting the animals two by two.... Lucinda Lions from Sydney, Australia | Read my articles
Hi Greg, I agree with your comment on "specialise". I spends many hours learning and working with MYOB software so I can efficiently and effectively serve my clients. As an accountant I will only work with MYOB, it is not that it is better than the other products, it is that I have chosen to specialise in this product, and can offer a better service that way. Heather Smith from SUNNY BRISBANE! | Read my articles
Grant - without knowing more of your specific situation; here are some considerations to think about.
Is the laptop a desktop replacement? or will you run the laptop in parallel with your desktop? If you're running two computers (the laptop and the desktop); then you will need two licenses for your commercial applications. If you primarily use hosted or open-source applications; then licensing is less of an issue, but for hosted you're tied to needing internet access to get your software. If you're running two computers; there is an overhead (either in your time, or using software) in keeping your applications and data in synch.
How productive do you want to be away from the office? A BlackBerry is a great way to keep informed, but you're limited in how productive you can be on the road. Are you someone who is productive away from their desk? or do you need the discipline of a work environment?
Wireless internet may be an added overhead. Free wifi hotspots are still quite rare, even in the city. Wireless modems are fantastic in metropolitan areas, but are often useless or prohibitively expensive in rural areas. Your wireless connectivity requirements will depend on your travel requirements.
Are you signaling an availability to your clients that you're intending to? With increased mobility comes increased expectations of productivity. If responsiveness is a key factor to your USP; then the more tools you have at hand wherever you are; the better able you are to service your clients. If you want to schedule client time and personal time distinctly; having a desktop means that you work while at your desk, and you're on your own time when you're away from it.
Small point, but if you've been running with a BB+Desktop model previously - does carrying a laptop match your working (and life-) style? BlackBerry's are great as they can be slipped into your pocket, but you will need to carry a suitable bag for your laptop.
Your desktop PC can be insured under your business premises insurance, or home and contents insurance, as a designated item. You should consider taking out some General Property insurance to specifically cover your laptop while you're on the road.
Still not sure - try renting a laptop for a month or two, and see if it suits you.
I hope this helps. Greg Pritchard from Sydney | Read my articles

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