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From renegotiating contracts with your vendors to exploring the capabilities of free tools, there are several ways businesses can reduce technology costs. — Getty Images/PeopleImages

When you’re starting a business, it’s easy to get excited about the potential and not pay attention to how much you’re spending. But according to CBInsights, 29% of startups fail because they run out of cash. If you find yourself needing to cut back, here are six ways you can cut tech costs.

Move your data to the cloud

According to Cisco, cloud data centers will make up 95% of total data center traffic by 2021. And for many businesses, the number one reason for this shift is the cost benefit that comes with moving data to the cloud.

If you run your own servers, you’ll have to buy all the hardware and have a place to store it. Plus, you’ll have to train your staff members on how to use and maintain this equipment. These costs add up fast and you may end up spending a lot more than you anticipated.

In comparison, most cloud providers operate on a pay-as-you-go model. That means you only have to pay for the services you need at the moment and can scale up or down as necessary.

[Read More: What’s Better? Data Backup Center vs. Cloud Backup]

Review your current subscriptions

There’s a good chance that your business is currently paying for subscription services that you aren’t utilizing. But it can be easy to overlook these expenses since they usually come out automatically. This is especially true for annual subscriptions that only come out once a year.

Take some time to review your current subscriptions and consider whether the service is really necessary for your business. Odds are, you’ll find some opportunities to cut costs by the time you’re done.

Consolidate the platforms you’re using

Take some time to evaluate the platforms and services you’re currently using and look for any redundancies. You may find opportunities to consolidate the platforms you’re currently using.

According to a report from ServiceNow, companies that successfully consolidated to a single platform reported the following benefits:

  • Shorter time-to-market on new products.
  • Better business agility.
  • Higher levels of security.
  • Increased innovation.

And consolidating the platforms you’re using could have the added benefit of increasing employee productivity. When employees are more satisfied at work, the business will operate better and your company will look more attractive to potential employees.

One of the easiest ways to cut costs is by standardizing your tech infrastructure.

Renegotiate contracts with your vendors

Another way to cut tech costs is by negotiating your contracts with software vendors. Ask your current vendor if there are any opportunities for a cost reduction or discount and see what they have to offer.

And if you’re up for any contract renewals, you can try to renegotiate the terms as well. If your vendors won’t give you any temporary relief, you can ask about pausing the service for the time being. This will give your business some temporary financial relief.

[Read More: How to Negotiate a Better Vendor Contract]

Standardize your tech infrastructure

One of the easiest ways to cut costs is by standardizing your tech infrastructure. This could look like giving every employee the same type of laptop or making sure everyone uses the same software applications.

Every time you introduce something new into your business, it adds a new layer of complexity. You have to spend more time training your employees on how to use that application. And it’s confusing to your employees since none of them are on the same page.

By standardizing your infrastructure, you ensure there’s consistency across all your hardware and software. Your IT operations will become more efficient and easier to manage. And you also put your business at less risk of a security breach.

Find as many free resources as possible

Finally, you should take advantage of as many free resources and tools as you can. Many software providers offer a “freemium” version of their product.

It may not be as robust or offer as many features as the paid version, but it could serve its purpose in the short term. And many companies offer services that are free and can meet your needs as well as a paid product could.

For instance, Google Analytics is an effective and completely free option for tracking your website visitors. You may find that you don’t always need to invest in expensive software to get the job done.

[Read More: Best Free Apps for Startups]

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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Published November 13, 2020