Here's How CIOs are Finding Money for Cybersecurity in their IT Budgets

With news of data hacks and ransomware attacks on the rise, companies who may not have given much thought to cybersecurity in the past are quickly finding that it is a much more critical component of their business than they budgeted for.  With only 50% of IT professionals feeling “Extremely Prepared” for a cyberattack in 2021, it’s no surprise that many companies are looking for room in their budgets to bolster their cybersecurity framework. And with the average IT budget coming in around 4% of revenue, it can be a challenge. Taking a holistic look at your IT systems can help identify some areas of potential savings in your IT budget.  

WHAT IS THE LARGEST IT COST FOR MOST ORGANIZATIONS?

Outside of staffing, connectivity is generally one of the most critical and is justifiably one of the most expensive items in many IT budgets. And while it’s easy to assume there’s nothing to be done there, it can be worth a review of your current infrastructure to see if there are options that can provide the same (or better) performance at a lower cost. Opkalla recently implemented SD-WAN (Software Defined Wide Area Network) for a law firm with multiple locations across different states helping to reduce their monthly spend and increase performance. And while the cost savings will vary based on the company and the implementation, a 2020 Dell Communications/Gartner report found that implementing SD-WAN can result in up to 75% reduction in costs over traditional MPLS-based WAN designs.   

WHAT ARE SOME OFTEN-MISSED OPPORTUNITIES TO REDUCE IT SPEND?

Monthly expenditures can frequently be viewed as “normal” operating expenses and overlooked when considering cost-saving opportunities; however, there can be hidden potential savings. Here are a few good places to start, along with some examples of companies who looked at their IT budgets through a different lens to realize significant savings.

Legacy Telephone Systems 
Telephony charges (especially for global companies) can add up to a hefty monthly spend. As cloud phone systems continue to become more robust, many organizations are finding savings by moving away from their legacy phone systems and adopting VOIP phone solutions. With options like Zoom Voice now offering PSTN (Public Switched Telephone Network) services in 47 countries, migrating to a cloud-based phone system is now feasible for many companies that may not have considered it a viable option in the past. Take, for example, our global manufacturing client who was looking to move to Microsoft Teams and get off their old PBX across all their global offices.  We introduced them to a communications company (in this case, Masergy) that cut their monthly spend in half, resulting in savings of $40,000 annually. 

POTS (Plain Old Telephone System) lines
For organizations that cannot move to a cloud-based telephone system, there may still be an opportunity to cut costs. We worked with a public healthcare organization with 500+ POTS lines across the country that was able to save a substantial amount by consolidating all the lines into an aggregator (in this case, BCN Telecom.) Their cost per line was reduced by 15%+ percent, and the new pricing structure resulted in savings of over $100,000 annually. 

Mobile Device Management
Cell phones have become as common as laptops for many companies’ workforces, and managing them can often mean multiple plans with different vendors.  To address this concern for a manufacturing company that was looking to reduce the cellular costs for their fleet, we helped them adopt a new mobility plan through MetTel, saving them over $10,000 annually. They were able to consolidate management and deployment to one mobile provider versus having multiple contracts from Verizon/AT&T based on the location of their users. An efficiency win for the IT team trying to manage and secure devices as well! 

Microsoft Licensing
Once initially set up, many companies don’t take the time to periodically review their Microsoft licensing to ensure they have the most optimal implementation, which is understandable as the options can be incredibly complicated. But with all the different factors that go into determining the best licensing (which can often change throughout the course of a company’s operations), not doing so can mean leaving money on the table.  Whether the goal is to pare down licensing and only pay for what you need, or better understand what options you may be paying for but not utilizing (and possibly paying another vendor to do the same thing), it can be worthwhile to dig into it.  Working with a Microsoft Certified Solutions Provider (like Opkalla) who knows the intricacies of the licensing can help translate your company's needs to the features provided by Microsoft and guide you to the most optimal licensing for your organization. 

Cybersecurity Tools
Circling back to cybersecurity, it can also be of value to review your current cybersecurity solutions.  While your current solution may be getting the job done, there could be more cost-effective options. An accounting firm client of ours recently implemented a new cybersecurity tool, Trustwave, at a significantly reduced rate to what they were paying for their previous tool. This new MDR (Managed Detection and Response) service offset the need to hire additional security talent internally, an added benefit. They now have a better-aligned solution for less than a quarter of the $70,000 they were paying annually.  

These are just a few examples of areas worth taking a second look at when tackling IT budget planning.

If you’d like a more comprehensive, customized list of options to consider when reviewing your IT spend for potential efficiencies, complete the form below.