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By Martin Straub , CPA, CITP
During tough economic times, businesses of all size consider options for reducing costs. Technology is often a common budget cutting target. However, given most business’ heavy reliance on technology, smart, disciplined spending is a better approach than arbitrary reductions. While it may be prudent to temporarily delay new software projects or equipment purchases, maintaining and stretching the life of the equipment you already own is now more important than ever.
Fortunately, there are many steps that your business can take to most effectively leverage your IT budget.
Backups – If you do not already have an effective and tested backup routine, make sure to put one in place. Nothing is more costly than a desperate dash to your local computer shop hoping that they can recover some tidbits of your data after your hard drive crashes or your PC is virus-infected.
Security software subscriptions – Now is not the time to let your subscriptions lapse – unless your PC doesn’t connect to the internet, current antivirus definition files are mandatory. However, some of the security software vendors will automatically renew your subscriptions and charge your credit card – even for computers you may no longer have in service! Be sure to monitor your subscription and billing status closely. In addition, if you have multiple PCs in your home or office, and especially if you have a server, you should strongly consider a bundled subscription for all your PCs. The cost savings compared to individual subscriptions is significant.
Resist software upgrades – Software vendors would like to convince you that the latest version of their software is must-have but be sure to look closely before you buy. Not only do you likely not need any of the new “features”, but the newer version may require more computer resources to run or may conflict with other software. As the saying goes, if it isn’t broke…. While some software such as QuickBooks requires occasional upgrades, usually you can skip at least 1-2 upgrades before support ends for the current product.
Upgrade existing PCs – Converse to software upgrades, one of the best investments you might make is to upgrade your current PC’s hardware. For performance improvements, additional RAM often makes a huge difference. 4gb of RAM should be standard in all your PCs, whether they are running Vista or XP. If you’re not sure how much you currently have or how to upgrade, check out crucial.com – it has all the information you’ll need and you might be surprised by the low cost of the upgrade. Other cost-effective hardware upgrades to consider include adding additional storage via a new internal or external USB drive or replacing your video card to support dual monitors or improved graphics.
Maintain existing PCs – To get more life out of PCs you currently use, make sure they are free of “bloatware” and other software that may have accumulated over the life of the PC. The best way to rid your PC of unnecessary software is from Add/Remove Programs in the Control Panel. Review the list, then uninstall anything that you don’t use. Other maintenance tasks include running Windows’ disk cleanup utility, defragmenting your hard drive, and using “msconfig” utility to reduce the number of programs that automatically launch at startup.
If your PC is greater than three years old, give serious consideration to re-installing Windows. While this is not a quick task and you’ll want to be sure to have copies of all your programs and important data files before you start, this is often the best way to “recondition” your PC and return it to performing as quickly as when you first started using it.
Networks – If you use a server in your office and share data or run programs over the network, consider upgrading your switches to gigabit (1000mps) ethernet. Gigabit ethernet can transfer data at 10x the speed of 100mps, vastly improving the performance of your programs and data transfer speed. If most of your network use is related to the internet, don’t bother with this upgrade or moving to wireless “n” as it will have little or no performance impact on your internet connectivity.
Reduce printing costs - Remember that low cost color printer you bought a few years ago? Are you surprised by the frequency or cost of replacement ink? While printer manufacturers would like you to think that only their “genuine” cartridges are acceptable, often this is the most expensive option. Instead, consider purchasing off-brand ink cartridges. While I wouldn’t suggest trying to refill cartridges (too messy and time-consuming), I’ve had good luck (and saved quite a bit) by using generic cartridges. Another consideration, particularly if you lease a color copier / printer (as most leases charge per color page printed) is to setup the same printer twice – one of which is your default and prints in black & white only.
Spend wisely – When the time does come to replace PCs, be sure to buy the most cost-effective (and not necessarily the cheapest) PC that matches your needs. For instance, if you’re not a gamer or work with complex graphics, buying a machine with an enhanced graphics card is not necessary. For this reason, I often recommend that businesses purchase their PCs on-line or from a local reseller so you can get the exact configuration you need, instead of an off-the-shelf unit from a mass retailer which may be loaded with bloatware and other unnecessary features. To stretch your PC purchasing dollars, consider configuring the PC with a higher RPM hard-drive and as much RAM as possible. Both of these options will often do more for your performance (and at less cost) than upgrading the processor, hard drive size, or graphics card. Unfortunately, on-line configuration tools from Dell and other vendors often offer a bewildering array of choices so if in doubt, find an expert who can help before you finalize your purchase.
Reducing spending is always a challenging proposition. However, with same careful foresight and planning, you can cut costs and simultaneously extend the life of your IT equipment – a winning combination during any economic conditions!
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