Ten Steps to Managing Your IT Budget in 2018

January 5, 2018
Quincy Johnson


Quincy Johnson

Digital Marketing Specialist

As 2017 came to a close, organizations typically found themselves either overspent on budget, operating on fumes , or holding on to excess budget dollars that they were looking to spend on just about anything in order to not lose out on allocations for the upcoming year. Not exactly an ideal situation.

What if we told you that there was another way? How would you like to both start and end 2018 knowing that you are efficiently managing your assets, getting the most out of your software renewals, and not in danger of over consumption in your cloud environment?

Getting a Handle on Cloud Spend Management

Most organizations today are operating in either hybrid cloud (a blend of public and private) or multi-cloud environment. With so many moving pieces, it can be difficult to track and manage cloud spend across the entire organization.

Here are six steps you can take to ensure that you are in control of your cloud spend – both now and at year end:

  1. Evaluate your current cloud strategy first and see if it is helping you meet your business requirements
  2. Ensure you have visibility into all of the cloud resources you are using across your organization by business units
  3. Know your cloud stakeholders by business unit — people are involved in helping you meet the business requirements for cloud adoption, you cannot go at it alone, and the more it is a company-wide initiative, the more successful it becomes
  4. People, Process and Technology — now that you know your stakeholders, what is the process and solution you will use to manage the budget and spend of cloud adoption?
  5. Define accountability for all cloud resources being used — it is key to have visibility into the cloud resources but also, group them, so you can track by accountable owner and business unit
  6. Establish Budgets (up front) – if you did not do this in 2017, make your New Year’s resolution (I know I hate them too) for 2018 to be proactive and establish budgets for your cloud resources. This allows you to efficiently track spend against budget and keep stakeholders informed

The above six steps are great if you are already in the cloud, but what if you are new to the cloud. There are steps you can take such as evaluating your current on-premises environment to identify what is being used on-premises and taking a consumption based shift to the cloud. The goal is to  shift only what is being utilized and not  everything; this way you can guarantee that your cloud adoption from day one will have the efficiencies you need.  In conjunction with evaluating your on-premises workloads, also determine the license mobility of the software you are moving to the cloud?  Will you incur additional costs or are there better software licensing options in the cloud?

Are you managing your assets effectively?

Software Asset Management has become a major focus in organizations more recently. Due to the fact that today’s  work environments lend themselves to  employees with increasing autonomy, this can lead to rogue software that is not accounted for within IT. Software touches all aspects of the business and employees today sometimes do not think twice about simply using the department credit card to buy what they need. Software Compliance issues can cripple an organization if it is not fully aware of all assets deployed within the environment.

In order to make sure that you are making the most of your Software Asset Management (SAM) practice and not be found to be out of compliance, here are four steps to follow  early in 2018 to put you in an optimal position:

  1. Start now to craft SAM strategies and prepare for 2018 investments – perhaps a SAM maturity assessment in early 2018
  2. Evaluate which contracts are up for renewals in 2018 and determine the roadmap and negotiation strategy accordingly
  3. Assess overall risk in the software estate with a Risk Profiler to understand where you should focus your efforts
  4. Understand what software lifecycles are and what products are sun setting in 2018/2019 so you can prepare

There are quite a few nuances to managing IT landscapes, but if you are able to plan, track, and optimize effectively, complexities become easier to manage.

Please visit us here at SoftwareONE if you have any questions, or would like to understand how you can get control of your IT budget and spend for 2018.

Leave a Reply