With the challenging economic landscape continuing to impact more and more sectors around the world, a growing number of businesses are feeling the pressure. Despite reduced budgets, new research from Crayon has found that the vast majority (95%) of global businesses are failing to fully optimize their IT budgets.
A study of more than 2,000 IT decision makers (ITDMs), reflecting the 171,000 layoffs made by 594 technology companies in the first months of 2023, found that nine in 10 businesses listed IT cost optimization as a high priority.
Looking ahead, Crayon has highlighted some key points of failure to help businesses get back on track and curb their spending once again.
Reduce IT costs and the cloud
According to the poll, just over a third (35%) of companies are actively evaluating their IT spend, indicating the amount of potentially wasted money that could be reinvested in something with a better return on investment (ROI) or saved altogether.
According to Crayon’s study, more and more companies are now turning to FinOps rather than leaving cost decisions to their CFOs or finance teams. The FinOps approach envisions more collaboration between departments for better understanding, streamlining and optimization overall, and has become more noticeable in countries such as Singapore, Saudi Arabia and parts of Scandinavia.
This move reflects both a lack of time among senior decision-makers and a lack of visibility into all of the organization's spending, as entire business models are forced to adapt.
Crayon CEO Hayley Mooney explains: “Many businesses don’t give the same control to IT budgets as they do to other important budgets.”
Mooney continues: “To overcome this and weather the storm both now and in the future, organizations must work with a partner to draw the right lines between different technologies and platforms, business needs, contractual details and overlooked subscriptions, organizational structures, skills shortages, and much more.”
This collaboration may be seen more broadly as Big Tech comes under increasing pressure from antitrust cases and other similar warnings, leaving many to suspect that leveraging a more collaborative environment with third parties may be the way forward.
Information source: techradar.com
