With government agencies around the world struggling to keep inflation under control and rumors of a recession growing louder, many companies are facing a period of significant economic pressure.
To weather the turmoil, companies are looking for ways to cut costs. And of course, technology budgets are being scrutinized as a big spend driver.
With this attitude Tech Radar Pro spoke to CTOs across industries to highlight the best areas of the technology stack to make savings. In this issue, we focus on how you can control the costs of your technology stack simply by organizing your hardware and refining your processes, and discuss why other areas of your business will also reap these efficiencies.
Get a clear picture of the resources used
In today’s always-online world, any organization that has been open to business for an extended period of time will have accumulated an array of technologies to handle its day-to-day operations. Technology is constantly evolving, so it’s entirely possible that a solution that served an important purpose years ago is no longer useful to the business.
While it can be difficult to track non-working or underutilized technology (clear cost-cutting opportunities), Andy Lole, CTO of bot detection company Netecea, has the solution and explains why it’s important to keep track of technology stacks .
“As energy prices have risen dramatically in the UK over the last year, we are all becoming increasingly aware of standby consumption or ‘silent waste’. Even if the electronics remain plugged in and operational, even when the screen is off or no device is plugged into the charger, there are still small electricity bills.”
“That also applies to ours Cloud infrastructure. The costs of storing old artifacts like VM images add up. In order to really save money, we need to take care of all these legacy issues virtual machines are actually turned off and not quietly wasting cloud budget without adding value. There are many great tools that offer better visibility than the standard cloud dashboards. The FinOps Foundation has some great resources to help.”
Delete legacy architectures
Sometimes it’s not enough for a company to shut down hardware while it’s not in use, and the best solution is to find idle or slow technologies and remove them from your technology stack.
Rathi Murthy, CTO of travel company Expedia Group, believes that having a consistent technology stack is far more beneficial to a business than trying to cover every imaginable feature, especially to cut costs.
“Any technology-centric company that has grown over the years has invested in technology at various points in its evolution, which means there is a legacy architecture to manage. Chances are your tech stack resembles a patchwork of different silos, each increasing complexity, which inevitably leads to higher costs.”
“A fundamental technical principle that I have introduced at Expedia Group is to get the foundations right, as it is important that our technology platform is stable and secure. So make sure you focus on the infrastructure, services and data to ensure they are consistent across the technology stack. If you do this, you can save time and money across the board.”
Streamline the way you acquire and use data
Once a company’s technology stack is up to date, rethinking and optimizing the processes that rely on it is the next step forward. An example of these processes could be how companies acquire, store and analyze data.
Peter Henshaw, CTO at Sky Business & Sky Connect, echoed Murthy’s comments on testing technology stacks while applying the practice to data collection and usage practices.
“For CTOs looking to reduce costs without compromising the customer experience, the best way to focus on efficiency is to ensure your data is scrutinized. A common mistake many companies make when trying to save money is forgetting to apply rigorous discipline in sourcing, aggregating, and driving insights from data. This can lead to major inefficiencies and prove costly in the long run.
As a result, decisions are also supported by data in a hurry to inform debates and ensure these are not conceptual in nature, but rather based on commercial, product, customer and technical considerations. This supports focus and allows us to assess and determine which specific investments are having the greatest impact.”
“With greater transparency, increasing standardization and more consistent use of data across our organization, it becomes possible to better manage, spend and reallocate a significant amount of investment to the most fruitful areas, all while driving savings and improving the customer experience.”