Las Vegas Managed Services Provider Shares Key Methods to Optimize IT Costs

It’s no secret that technology costs are rising quickly. In 2024, Information technology spending rose by 6.1% and Forrester predicts it will rise another 10.7% by the end of 2025. Part of the reason for rising technology costs is simply that most products are increasing in price, and IT tools are no different. However, it’s also because technology demands have increased exponentially.

Regardless of the reasons why, the result is the same. You need a way to optimize your IT investments to avoid overspending. Cutting back on technology isn’t always a feasible solution, but strategically investing in the right mix of IT tools could be.

If you want to keep up with technology without letting it consume your entire business budget, read ahead. In this article a reliable Las Vegas managed services provider will explore what drives information technology costs and what you can do to optimize your IT budget.

What’s Driving The Cost of Technology Upwards So Quickly?

It’s difficult to pinpoint one singular reason why the cost of technology is rising so quickly. The cause of the influx is likely the result of a combination of factors, not one singular reason.

Firstly, supply chain challenges and inflation have greatly increased the cost of hardware. Companies are paying more for servers, processors, and network infrastructure hardware because chip shortages and shipping delays remain common issues. Manufacturers also face higher labor and raw material costs, and these increases are often passed on to buyers.

The rapid adoption of generative AI is placing pressure on IT budgets. This isn’t simply the result of more businesses investing in AI tools. Rapid AI spending is having a tangential effect on technology costs, even for businesses that use IT without AI features.

For instance, the cost of running workloads on a public cloud data center is projected to increase by 42.4% as these data centers must rapidly scale to support heavy AI workloads for multiple cloud tenants. That cost will affect anyone who uses these public cloud-based data centers, no matter their workloads.

What Are The Costs & Benefits of Technology?

The price increases mustn’t deter you from investing in new technologies. Instead, view these statistics as a sign that it’s time to create a cost-aware IT strategy.

You can still invest in higher-priced technology if you believe its ROI will eventually be worth the cost. After all, resolving recurring IT issues caused by legacy systems will also put unneeded strain on your budget.

Before you invest in any IT tool, it’s wise to conduct a cost-benefit analysis. That may look different depending on your business goals, but there are a few key factors that will remain consistent. Here are some examples of where to weigh the costs vs. the benefits that suit most use cases.

8 Key Methods to Help You Optimize Your Information Technology Costs

1. Audit Existing Tools

Examine every tool in your environment to see which ones are actively used. Remove or downgrade unused licenses and applications. This immediate step cuts waste and frees the budget for the tools that provide real value.

2. Consolidate Platforms

Look for opportunities to use multi-function platforms instead of a long list of single-purpose tools. Consolidation reduces overlapping costs, simplifies vendor billing, and improves user productivity with fewer systems to learn.

3. Evaluate Cloud Subscriptions

Cloud services often expand quietly as new features or accounts are added. Regularly review subscription levels and resource consumption to keep them aligned with your actual needs. This helps prevent creeping costs from unnoticed expansions.

4. Standardize Toolsets

Using too many variations of the same type of tool leads to unnecessary operational expenses. Unless there is a specific reason to, avoid using multiple messaging apps or multiple file storage platforms, for example. Standardization keeps licensing simpler, improves collaboration, and reduces unnecessary costs.

5. Implement Usage Monitoring

Set up regular tracking for how often and how effectively each tool is used. Usage reports reveal which products justify their cost and which ones are underutilized. This data-driven approach helps you make smarter renewal or replacement decisions.

6. Forecast Future Demand

Look at where your business is heading and match your investments to that growth trajectory. If you only plan for today’s needs, you risk overhauling contracts or licenses later at a higher cost. Plus, these costs may seem like less of a drain after revenue increases from business growth.

7. Consolidate Vendor Relationships

Working with too many vendors creates overlapping costs and fragmented support. By consolidating vendors as much as possible, you simplify management, strengthen accountability, and gain pricing advantages through bundled services. Fewer vendors also make it easier to monitor performance and spot cost-saving opportunities.

8. Talk to an IT Consultant

An experienced IT consultant helps you see where your technology spending is effective and where it could improve. They can review your current tools, licensing agreements, and subscription models to highlight inefficiencies that are not obvious during day-to-day operations. This outside perspective adds clarity and gives you actionable steps for aligning costs with real business needs.

Ask a Trusted Las Vegas MSP For Advice on How You Can Manage Technology Costs

Technology is expensive, but your product and service costs need not be wasted. Creating the right IT strategy to align IT with your goals is a more cost-effective solution than simply dropping needed technology services. IT is needed at most businesses, and not having the right tool in place can cost you in lost productivity and poor customer experiences.

If choosing the ideal solution feels overwhelming, talk to Tenecom. We employ a team of expert IT consultants who can help you manage your IT budget. We’re also a managed service and cybersecurity provider who can become your consolidated vendor if you need to reduce service contracts.

Reach out to a trusted managed IT services provider in Las Vegas today if you have any questions!