A 'Culture of Saving' Can Benefit Enterprise IT

Matthew McKenzie, Senior Editor / Community Editor | 7/29/2010 | 10 comments
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Over the past couple of years, a lot of us have cut back on the little things to make ends meet. This "culture of saving" is sticking around, even as the economy improves. And there are some lessons here that enterprise IT organizations should take to heart.

It's no surprise that people cut corners when times are bad. But the economy is supposed to be getting better -- yet according to a recent Harris Interactive poll, more Americans than ever before are focusing on lots of small ways to save money.

According to Harris, 65 percent of us buy generic brands today -- a 3 percent increase from a year ago. Brown-bagging lunches is still on the rise, as are refillable water bottles. The number of people who buy coffee in the morning is still falling, and the number of people cutting back their cable-TV service is still going up.

And today, nearly one person in six has dumped their landline phone service and switched to using only a cell phone.

What's going on here? One explanation is that once the economy really starts to improve, we'll all pile back into Starbucks and re-up our HBO subscriptions.

But another theory -- the one I'm leaning toward -- is that our society has turned an important corner. So many of us were burned by layoffs, credit card debt, fear, and uncertainty that we're not going back to the bad old days. Those "little things" add up to big money, and more of us appreciate that fact.

Ironically, that cultural shift can work to an IT organization's advantage.

Think about your company's hardware refresh cycles. At one time, they might have happened every two or three years. Today, they might run four or five years, maybe longer. And that can be a good thing.

This sort of change resets users' expectations. You kicked them off the hardware upgrade treadmill for a while, and they're learning that the world didn't end. You can approach desktop provisioning as an exercise in price versus performance, instead of turning it into a beauty pageant where your end users are the judges.

The same thing applies to desktop software. Think of cloud-based applications as the industry's generic brands -- many of them do the same thing as the big names, they just do it cheaper and with less fancy packaging. The same is true of open-source applications, whether you're talking about productivity apps like OpenOffice or even an outright move to desktop Linux.

These aren't the best solutions for every business. But right now, you at least have a chance to weigh them objectively, rather than worrying about users complaining that they aren't getting the newest, shiniest, flashiest desktop toys.

Maybe the "bad old days" will come back. For example, it's possible to argue that the smartphone market is built as much upon shallow materialism as any real need for the technology.

But for now, your IT organization has a once-in-a-generation opportunity to adjust your users' attitudes and expectations. Why not use it while you can?

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thingsithinkithink   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 12:25:23 PM
Re: On the Asterisk note
We have some Asterisk PBX's as well and we've never had a complaint either.
SaneIT   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 10:31:57 AM
On the Asterisk note
If I were a small company of say 20 or less, I would roll out an Asterisk PBX in a second.  I'm not totally sold on it as an enterprise solution yet, but it's getting very close to that level.  I have two Asterisk PBXs that are setup for quick phone deployment to remote sites and I've never had a complaint, doing this with a commerical PBX would have been so expensive we never would have attempted it but the Asterisk solution is dirt cheap and as flexible as you want to make it.
SaneIT   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 10:23:51 AM
Re: One little thing we've done
@ Matthew, it depends on the function.  The ones that we just need phone access to I just require that it function with one of the two carriers we have contracts with.  For the smart phone folks or those that require e-mail access it has to support Exchange natively (so we can remote wipe it in the event it's lost or they terminate employment) it must have a wifi radio to minimize cellular data use when in the office and must run a phone OS that we have in house just in case they do something crazy and need someone to remotely troubleshoot why their phone has become a paper weight.  It's very diffucult for a tech to walk someone through a menu system they've never seen before. 
Matthew McKenzie   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 9:35:48 AM
Re: using VOIP to make calls
@zeppy: Asterisk is one of my favorite examples of an open-source product that went into a market that had traditionally been closed, highly proprietary, and unreasonably expensive -- and cracked it wide open. Even companies that never considered using it have probably benefitted from the competitive pressure it has placed on the proprietary PBX vendors.
Matthew McKenzie   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 9:34:05 AM
Re: using VOIP to make calls
Skype has grown on me over the past several months. Once you figure out what it's good at and when to be wary of it, it's an outstanding addition to your toolkit. And while I don't know how cost-effective it is at $3 a month for SkypeOut when you scale that cost up to the enterprise level, it has to be competitive in many situations.
zeppy   A 'Culture of Saving' Can Benefit Enterprise IT   7/30/2010 12:07:14 AM
Re: using VOIP to make calls
That's a good point, Taimoor. I know some companies that have also seen some significant savings by looking hard at their phone expenses, and bringing in competitive voip options. I also know of one company that replaced a large, expensive, traditional PBX with an Asterisk-based system using off-the-shelf server hardware and saw huge savings. It required bringing in some people with different skill sets, but apparently getting out of the brand-name PBX maintenance and support lock-in was more than worth it.

And as Matthew points out, and many businesses have discovered, Skype is a great FREE  alternative for many communications needs.
Matthew McKenzie   A 'Culture of Saving' Can Benefit Enterprise IT   7/29/2010 7:36:12 PM
Re: using VOIP to make calls
I have the option to add company-provided VoIP service to my home office right now. There's actually a big difference in price between the two options I have: an actual handset versus a "softphone" solution that installs on a laptop and works (I assume) like Skype.

Either way, though, I'm sure the monthly savings covers the cost pretty quick. I know that using Skype just for things like conference calls has cut my cell phone usage by at least 75 percent.
Matthew McKenzie   A 'Culture of Saving' Can Benefit Enterprise IT   7/29/2010 7:33:09 PM
Re: One little thing we've done
...the core features I've laid out as an approved minimum.

Interesting...what are some of the features you require? Is it a pretty easy target to hit, or are there some surprises on that list?
Taimoor Zubair   A 'Culture of Saving' Can Benefit Enterprise IT   7/29/2010 4:32:45 PM
using VOIP to make calls
The IT department of my company also had to cut down on costs because of budget constraints. Apart from the usual majors to cut down on the hardware and software upgrades, we also decided to cut down on telephony costs. Since we are in the outsourcing business, previously, there were a lot of calls being made abroad through conventional land-line and mobile phones. That was a huge expenditure and we decided to cut down on it by introducing VOIP calls throughout the organization. Later, we banned conventional calling methods for international calls and forced users to use VOIP only. This brought a great saving in costs.
SaneIT   A 'Culture of Saving' Can Benefit Enterprise IT   7/29/2010 2:32:38 PM
One little thing we've done
We used to hand out cell phones like they were candy at halloween but recently we've started pushing toward employees buying their own phones and bringing them over to our corporate plan or reimbursing them a set dollar amount per month.  Both ways come out less expensive for us and the employees are happy becasue they get their choice of devices as long as it supports the core features I've laid out as an approved minimum.  It's also a big time saver for IT because the employee is the one that has to wait on hold for an hour or go down to a local store front when they drop their phone in the sink.


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