Five top tips for maximizing your IT budget in 2023

How to maximize your IT budget

1. Organization is key

Organization is essential to making your organization’s budget stretch. In knowing exactly what features you have, what you need, and what they cost, you will understand where your money is being spent. This ensures you’re able to assess and make changes when necessary to maximize your expenses.

Keeping organized and knowledgeable about your spending is the first step towards maintaining an effective IT budget.

2. Prepare in advance

To ensure you’re staying on top of your budget, keep track of your expenses ahead of time. Before making any major purchases, calculate the cost of it over the cost of all your other expenses. Make sure you catch any price fluctuations before they happen as this allows you to make adjustments to your budget accordingly.

3. Look into the future

Don’t use data from previous quarters to determine your budget for the future. Price, usage, and customer numbers change constantly, so your budget should be designed to work around these fluctuations to stay efficient. It was found that 93% of enterprises have a process to forecast cloud expenditures, so if you don’t have this process set up yet, we recommend that you invest now.

Looking back on previous budgets will dilute the effectiveness of your budget, so it’s essential to put the work in and plan for the future.

4. Take profits into account

If your organization sees sales and growth, you need to take into account the increase in costs you’ll experience, and budget according to that as looking at the bigger picture as opposed to solely the current state is essential.

5. Think about the use of your resources

Be smart about where you are using resources. If your IT department is handing out certain licenses or subscriptions to employees who don’t need them, this will incur unnecessary costs. Instead, ensure that only employees that actually need a certain product are receiving it. This means no additional, unneeded costs are being made.

The benefits of maximizing your IT budget

As mentioned, maximizing your budget unlocks a huge number of benefits for your organization:

• Reduces unnecessary cloud costs

  This is the benefit most organizations hope for because reducing costs means you can focus your spending on innovations and projects that will support the growth of your organization

• Improves productivity

  Analyzing your cloud usage allows you to identify the tasks your organization manages and reduce them. This gives your IT team free time to focus on more important tasks that will improve your overall business processes

• Improved efficiency

  An optimized cloud enables your employees to complete processes quicker, allowing them to meet deadlines more effectively

• Increased utilization

  By reviewing your IT budget and optimizing your cloud costs, you gain greater knowledge of the cloud services available to you, so you’ll be able to utilize additional services