Small businesses are continuing to spend more and more on IT. In the second half of 2012, the average IT spend for small businesses was $162,000, and in the first half of 2013, that number jumped to $192,000. That’s a 19% increase over an incredibly short time period.
The largest portion of IT expenditures, 39%, comes from hardware. Software comes in as the next highest expense at 30% of the total IT budget. IT services accounts for 19% while cloud services takes 12% of the budget.
What You Can Do to Cut IT Costs
Fortunately, there are a number of things you can do to make your IT budget stretch further. Here are a few:
Using virtualization—You can significantly cut your hardware costs by condensing server usage from multiple servers onto one physical server using virtualization. This is possible because virtualized servers allow for different environments to run on the same physical server. The cost savings extends beyond hardware as it also requires less space and energy to operate your system…