1. Check the fine print. What are you paying for? What do you use? Whether it's phone service or software applications, familiarize yourself with your contract and the terms of service. Make sure you know when the contract ends to avoid automatic renewal. "If you can make it through all of the confusing content, run the numbers to ensure you're paying for what you need and getting the best possible pricing," says John C. Ahlberg, president and chief strategist for Waident Technology Solutions in Glen Ellyn, IL. Compare what you pay for with what you use.
  2. Review cell phone costs. If you haven't already, implement options such as company-wide shared minute plans, Ahlberg says. Then evaluate options and extra features. Many businesses pay for excess minutes, video or audio streaming or navigation services they rarely use. To cut costs, review how each phone on your account is used--and only pay for the services each staff member uses routinely.
  3. Green-light VoIP implementations. More small and medium sized businesses are adopting VoIP to cut costs, with productivity gains being a secondary consideration, says Sanjeev Aggarwal, vice president of SMB infrastructure at AMI-Partners. While this is driving adoption of VoIP in all levels of the SMB market, including in businesses with fewer than 50 employees, it's not having the same effect in unified communications, which is still mostly being adopted by enterprises and the upper end of the mid-market, he says.
  4. Don't be afraid to downgrade. "Once you assess your needs, get rid of services that you aren't fully using," notes Kevin Brand, EarthLink's SVP of product marketing. You may be able to cut costs significantly by reducing or eliminating rarely used services, including premium channels or DVR access on the office television.
  5. Evaluate technology on value rather than price. Value comes from a product's overall quality and usefulness in relation to the total cost of ownership (TCO). In addition to purchase price, TCO typically includes costs for design, installation, administration and management; training; service and support; the costs of related equipment and supplies; and potential future upgrades. While low cost products seem like good deals, they may not support future growth. Look for products that will support your company's strategic plans.
  6. Reconsider software maintenance plans. With a software maintenance plan, you're entitled to download and install any updates released for that product for a set number of months. Most software comes with 12 months of support. After that, it's up to you to extend the service. It may pay to do so in year two, but by year three, Ahlberg says, users are usually familiar enough with a product to handle most minor support needs. "It can be less expensive to make one-off support calls as needed," he says.
  7. Weigh hardware maintenance costs against replacement. Hardware has a relatively short lifespan. As it ages, it becomes harder to get parts and service. Routine maintenance is important, but it may be a waste of money to pay for comprehensive annual service on old equipment. For some networking hardware, it may be more cost effective to keep a preconfigured back-up device in the storage room, Ahlberg suggests.
  8. Consolidate purchases. The more you buy in a single transaction, the more leverage you have to negotiate price and service options with the vendor or reseller.
  9. Get expert advice. Review your IT needs with someone you trust--an associate with in-depth technology knowledge, a technology reseller or an outside consultant. Ask for detailed recommendations about products and services that meet your needs and solve your problems. Ask about the pros and cons of various options, as well as how recommended technologies fit your company's long-term IT strategy.
  10. Consider hiring a managed service provider. A service provider can design, implement and maintain such things as IP communications, data storage or network security. The service provider may host services offsite or support and maintain equipment at your offices. The benefits include reliability and predictability. A fully managed technology support plan simplifies budgeting and cash flow process by providing a predictable line-item expense.

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