Cost Avoidance: Dedicating Unnecessary Funds to Hardware Procurement or Distribution?
The asset needs of an IT infrastructure naturally grow with an organization as it expands. This is especially true for companies in the service areas of communications, cable, and data center operations. What hardware is currently available for site configurations? Are implemented assets costing your organization too much money? When should hardware be decommissioned or can it serve another purpose within an infrastructure?
These questions are common among organizations as the wrong decision is capable of increasing total cost of ownership for every infrastructure asset whether implemented internally or for a customer. Buying new hardware makes no sense if the required technology is already available. Assets costing additional money to maintain should be retired and replaced with an efficient option. Cost avoidance is the process of making more informed decisions in the areas of logistics, purchasing, redistribution, and decommissioning to deliver the most cost effective choices.
Where Do Asset Costs Surge for Organizations?
A number of areas contribute to excessive IT asset costs including duplicate/unnecessary purchases, poor inventory visibility/management, inefficient hardware, insufficient sparing programs, and troublesome site configurations. Each increases the expenses an organization incurs as daily operations take place. For example, paying to maintain older hardware while newer certified spares may be on-hand but you don’t have visibility to see what is fully available, can significantly increase your total cost of ownership.
How much time do you spend locating a piece of equipment for site implementation? Is it ready for deployment or must the technician perform further steps to complete the implementation? These additional steps increase costs, decrease productivity, and eat up valuable time. Cost avoidance occurs when you know exactly what technology assets are available as well as how they can best be used.
Practicing Cost Avoidance Through Better Insight
A number of methods may be used to make better technology asset management decisions. One of the most beneficial options is to implement a tool designed to aid in this process. In order to be effective, the chosen management application must:
--Track Beneficial Information
--Manage Entire Inventory
--Provide Insight for Better Decision-Making
--Aid in Inefficiency Identification
--Deliver Helpful Logistics Data
--Serve as a Purchasing & Decommissioning Aid
Professionals who offer hardware purchasing services in addition to cost avoidance strategies provide the most organizational benefits. This is because they have the skills to fully manage current and future technology assets. Through a well-designed management tool, professionals are able to assess current assets, determine if they should be retired, repaired, replaced or redeployed, providing cost effective management choices, as well as configuring or testing hardware when needed.
If your organization is spending too much due to improper asset utilization, it is time to make a change for the better. At MDSi, we have developed a cloud-based SaaS solution to help you better manage the lifecycle of every IT asset. Our management solution combined with extensive hardware knowledge ensures that your hardware is readily available for deployment. We offer services such as procurement and maintenance to deliver continuous cost benefits. Contact us today to see how we can help you get more from IT assets by implementing cost avoidance strategies.