Should companies re-evaluate their Internet service and policies to save money?
Absolutely. All the time. It’s important to have your IT fit your business model throughout the organization. That can mean making sure each department has the right hardware and software, but also that Internet access, for insistence, is the right speed and bandwidth for the people who are using it. Why should a company be paying for more bandwidth than it needs? Technology for technology’s sake doesn’t make any money. It has to clearly save you money or improve your processes, and if you can’t quantify it there, then it just doesn’t belong.
How can buying the right hardware decrease your long-term costs?
You need to consider that the price of the hardware is only one piece of the equation. One option might, over the life of the machine, cost you more in power than the savings you thought you were getting with a lower price.
Also consider maintenance costs and understand that the maintenance agreement might cost more because the cost of the box is a loss leader. A lower initial price doesn’t necessarily mean a lower cost over the life of the equipment. Make sure you consider all costs when making those hardware-buying decisions.
How can re-evaluating your bandwidth get you the most for your money?
The cost of transport and Internet access is a declining proposition. Every year, you should expect to get more speed for less money. When negotiating a contract, make sure there are provisions for the future and that you can scale up or down with more or less bandwidth as your business changes. Make sure there is clear cancellation language that you can live with, because if they’re not willing to lower the price and provide better service, you need to search for a new service provider.
Also, when purchasing bandwidth, make sure there’s a clear escalation process so if there’s any problem with the bandwidth, you’ve got the names and phone numbers of everyone from the person who sold it to you to the CEO so you can make sure your business doesn’t suffer because of an outage.
John Grismore is the vice president of InsightBusiness Services, the commercial services arm of Insight Communications. Reach him at (502) 410-7208 or [email protected].
