Most businesses that have been around for more than a handful of years will either have a need for, or at least recognize the need for, right sizing. Right sizing, in short, is the optimization of your IT solutions for maximum effect with a minimum of cost. When done correctly, right sizing can not only save you money, it can increase your ability to perform as well as scale effectively.
3 main areas to size
In Information Technology, there are three core components that effect cost, performance and flexibility. Just about every IT department makes use of all three, even on a limited scale.
• Equipment – From servers to terminals, from cables to switches, from routers to network hubs, many companies, especially those with more than a few years’ experience will have some, all or even more than this short list of equipment to maintain.
• Software – An obvious component in IT – software from standalone applications, websites, mobile apps and even complete enterprise-wide systems must be used to run a business today.
• Personnel – Arguably the largest cost in IT. The specialists needed to build, run and maintain the other two components are a vital key to your IT success.
As your company grows, or has grown, the need to increase each of these three areas grows with you. In fact, often increasing one of the 3 parts of this IT triangle often requires at least an increase in one other.
For example, by adding new servers, you may need to add a new system admin, or a general equipment specialist. New software requires training and consulting, etc.
How to trim the fat
Remember that right sizing is streamlining your IT to perform well with as few resources as possible. It’s also important to remember that right sizing is a long-term solution – or investment – and like many investments, there is probably going to be a short-term cost.
For example, it may be that you no longer need that bank of servers and all the equipment to go with it. A Cloud-based solution may serve just as well and costs half as much. This means that you no longer need that admin or hardware specialist.
However, in order to make these cuts, you’re going to need a new business management system that’s more robust and works online and off – so you’ll have to spend there.
Although this is just a brief example, it demonstrates how today’s technology and technology options offers you a world of possibilities. Sometimes it’s not always clear how you can right size, but 9 times out of 10, there is a way to do so that will save you money and improve your processes in the long run.