[{"data":1,"prerenderedAt":706},["ShallowReactive",2],{"/en-us/blog/reduce-it-costs/":3,"navigation-en-us":35,"banner-en-us":452,"footer-en-us":467,"Chrissie Buchanan":678,"next-steps-en-us":691},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"seo":8,"content":16,"config":25,"_id":28,"_type":29,"title":30,"_source":31,"_file":32,"_stem":33,"_extension":34},"/en-us/blog/reduce-it-costs","blog",false,"",{"title":9,"description":10,"ogTitle":9,"ogDescription":10,"noIndex":6,"ogImage":11,"ogUrl":12,"ogSiteName":13,"ogType":14,"canonicalUrls":12,"schema":15},"How to reduce IT costs","Four ways organizations can spend less on IT and more on innovation.","https://res.cloudinary.com/about-gitlab-com/image/upload/v1749680558/Blog/Hero%20Images/reduce-it-costs.jpg","https://about.gitlab.com/blog/reduce-it-costs","https://about.gitlab.com","article","\n                        {\n        \"@context\": \"https://schema.org\",\n        \"@type\": \"Article\",\n        \"headline\": \"How to reduce IT costs\",\n        \"author\": [{\"@type\":\"Person\",\"name\":\"Chrissie Buchanan\"}],\n        \"datePublished\": \"2019-04-11\",\n      }",{"title":9,"description":10,"authors":17,"heroImage":11,"date":19,"body":20,"category":21,"tags":22},[18],"Chrissie Buchanan","2019-04-11","\n\nEfficient organizations do _more_ with _less_ – it's just simple math, really.\nBut even as teams try to stay lean and agile, some IT budgets are anything but. In a [recent survey that analyzed IT spending](https://searchcio.techtarget.com/magazineContent/How-Company-Size-Relates-to-IT-Spending)\nbased on company size, small companies spend on average 6.9 percent of their revenue on IT\n(enterprise spending is usually around 3 percent). Out of this IT spending, [more than 70 percent goes toward maintenance](https://phoenixnap.com/blog/it-cost-reduction-strategy) – just keeping things running.\n\nIT cost reduction could help fund the innovations all companies need to stay competitive,\nbut therein lies the problem. How do you prioritize what stays and what goes when _everything_ feels important?\nReducing IT costs doesn't happen in a vacuum – teams across the organization depend on these decisions.\n\n## Where do I start?\n\n### Reduce on-premise IT\n\n[On-premise IT has several costs](https://ianmartin.com/10-strategies-top-cios-use-reduce-costs/):\nthe servers themselves, power and cooling, staff to maintain them, software licenses, and the\nadditional leased space needed to house it all. [Virtualization hosts multiple virtual instances](https://www.bmc.com/blogs/6-ways-reduce-ongoing-maintenance-management-costs/)\n(Virtual Machines, VMs) of an operating environment on the same machine, reducing the\nnumber of physical servers needed. Virtual environments offer more flexibility, containers\nthat run independently, and fewer costs over the long term.\nTaking on cloud-based architecture embodies doing more with less.\n\n### Evaluate toolchain-management costs\n\nThose that spend more on their IT needs aren't typically the top performers – they just have more stuff.\nEvery application and plugin creates another potential point of failure, and added complexity\nalmost always spoils the efficiency party. Those in charge of IT have to keep up with more\nmaintenance, more patches, more logins, which in turn leads to more IT staff and even more\ncomplexity. Look at your toolchain – plugins, applications, and licenses – and evaluate the costs.\nSeveral \"inexpensive\" licenses that look harmless in micro add up quickly in macro.\nThis doesn't even factor the ongoing costs (upgrades, management, additional staff).\n\nSo much are you paying for your toolchain? We created this handy calculator that shows the\nannual cost for 100 users using some of the most common DevOps tools.\n\n[How much is your toolchain?](/calculator/roi/)\n{: .alert .alert-gitlab-purple .text-center}\n\n### Follow best practices to reduce downtime\n\nDowntime is every team's tech nightmare. It's estimated that [the cost of downtime for an\naverage-sized company is over $7,000 per minute](https://www.datafoundry.com/blog/6-cost-reduction-strategies-enterprise-IT)\n(yikes), and it can have far-reaching implications: worse customer relationships, employee turnover,\nand it can scare off investors, just to name a few.\nWhen facing a budget crunch, it might seem minor to skimp on a few steps when you're confident\nof the outcomes, but doing it right the first time saves much more in the long run.\nFollowing best practices like user testing and code reviews takes time up front, but they lower the chance of costly mistakes.\n\n### Modernize applications and migrate to lower-cost infrastructures\n\nConsolidating tools and an aggressive approach to application modernization are going to\nbe the greatest opportunities for enterprises to save budget dollars.\nA recent survey of top enterprise architects found that [36 percent cited application rationalization as the primary initiative they're working on](https://www.itbusinessedge.com/slideshows/show.aspx?c=93453).\nAnother survey of 250 senior IT executives found that 58 percent of them said\n[the best way to cut IT costs was to modernize or migrate existing applications to a lower-cost IT infrastructure](https://www.itbusinessedge.com/cm/blogs/vizard/application-modernization-tops-it-agenda/?cs=41480).\n\nReducing IT costs is essential for scale and funding innovations that keep organizations competitive,\nbut making the right cuts requires prioritization. For savings in the long term keep these four objectives in mind:\n\n*   Reduce on-premise IT.\n*   Evaluate toolchain-management costs.\n*   Follow best practices to reduce downtime.\n*   Modernize applications and migrate to lower-cost infrastructures.\n\nIT cost reduction directly correlates to increased revenue, but it isn't always easy. 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