Companies always search for solutions that reduce costs, extract more value from its resources, and increase productivity.

According to Gartner, TCO represents an application’s entire life and consists of two components: the implementation costs for support, maintenance, and the cost of extension. These costs are part of providing the SaaS application to internal clients, compared to the initial cost of purchasing the software application. The leading analytics company estimates that ITSM solutions can save costs when cost reduction targets are part of the business planning cycle. Still, according to Gartner, the TCO for owning and managing software applications can be up to four times higher than the cost of initial purchases.  

Factors such as ease of use not only reduce the cost of tool changes and training but are also likely to reduce costs in other areas such as customer service, support, and customer care. ITFM solutions need to achieve other business goals, including service quality, to keep existing customers and revenue. Therefore, you should welcome new technologies as soon as they are proven useful and implemented.

Ultimately, the tools you use to manage and operate your IT and the technologies your organization uses must reduce costs. Large organizations can charge different IT groups to use mainframes, but SaaS providers can effectively take on significantly more costs by offering better cost-sharing to the company. Your organization may spend time making its applications more efficient and lowering its mainframe costs, but ultimately the technology it uses, as well as the tools and operations that are used to manage and run IT, need lean cost structures. 

SAVING COSTS

Effective management of TCO helps to avoid costs by duplicating assets and not using assets after purchase. IT organizations can reduce the cost of services, management, and cloud computing by improving their organization. Cloud computing can also be a lever to reduce IT service management costs and increase financial efficiency. Efficient accounting processes increase IT and services delivery, define areas where costs can be saved, and increase financial efficiency. 

The ITIL framework is simply a recipe that cooks up some tasty cost savings for the business that satisfy that hungry bottom line. Here’s just a sample of the cash benefits you can look forward to by facilitating an ITIL framework.

Through ITIL service-level management techniques, you get a clear picture of precisely which services are appropriate for your company’s needs and which aren’t providing the best bang for the buck. Sometimes less-expensive solutions are viable, and sometimes multiple services can be combined into one solution to reduce costs while maintaining or enhancing service.

You might have network links that are overspecified or many network links that are underspecified. Not only can you save money by cutting back on unused service, but you also have a clear picture of networks that are oversaturated with data and, thus, prone to frequent downtime.

Instead, an immediate cost-avoidance solution for services is desirable, which improves user service and reduces the cost of reallocating IT improvements. Sometimes cheaper solutions are feasible, and sometimes multiple services can be combined into a single solution to reduce costs while maintaining or improving service. If ITSM and ITAM are integrated, they offer benefits that help IT organizations reduce costs, improve efficiency, and reduce downtime. ITAM benefits the company by increasing competitive advantage, reducing risk, improving the quality of after-sales service, and increasing flexibility.  

Run2biz’s mission is to provide tools to organize IT, supporting managers worldwide to achieve success and greater visibility and efficiency.

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Reference:
https://www.itil-docs.com/itil-processes-functions/