Stretch your IT budget
Explore cost optimization
Four levers to make more of your IT budget
Stabilize your IT spending: Greater cost stability and predictability – without limiting your ability to adapt.
Changing technology requirements, rapid innovation cycles and volatile market conditions can make IT spending difficult to predict. Usage-based models such as leasing or rental can replace large upfront investments with predictable monthly payments, making IT costs easier to plan and manage.
Organizations can also lock in prices and secure availability by ordering technology in advance and deploying it when needed, helping to reduce the impact of price increases and supply constraints.
Gain transparency into your IT costs: The purchase price is only one part of the equation.
Deployment, maintenance, support, replacement, storage, disposal, and the cost of capital, including the weighted average cost of capital (WACC), all contribute to the true cost of technology. A Total Cost of Ownership (TCO) approach provides greater transparency across the entire lifecycle and helps IT leaders make better-informed investment decisions.
Optimize the technology lifecycle: Keep technology aligned with actual business needs.
Technology cycles are becoming shorter, while IT requirements continue to evolve. Keeping technology for too long can limit performance and create additional costs, while replacing it without a structured lifecycle approach can lead to unnecessary spending. Lifecycle management helps align technology refreshes with actual business needs – keeping IT up-to-date while making better use of existing investments.
Create room for innovation: Cost optimization should not mean slowing down technology investment.
The way IT is acquired and financed can influence how much capital is available for strategic priorities. At the same time, the rise of AI and other data-intensive applications is increasing demand for high-performance computing infrastructure. For certain workloads, investing in dedicated on-premises server infrastructure can provide greater control over performance, data and security.
Usage-based models such as leasing can reduce upfront capital requirements and create greater financial flexibility – helping organizations invest in the infrastructure they need while continuing to fund AI, cybersecurity and digital transformation.
Uncover where you can save across your IT lifecycle
“CHG-MERIDIAN gives us a truly complete package, from advice and procurement to end-of-lease and data erasure. This has enabled us to noticeably increase our productivity and profitability.”
Ulf Kütemeyer, Senior Manager Contracting & Procurement, PISCEU
Make more of your IT budget
Frequently Asked Questions
What is IT cost optimization?
IT cost optimization means maximizing the value of IT investments while controlling costs across the entire technology lifecycle. It includes TCO, lifecycle management, cost transparency and financial flexibility.
How can companies optimize their IT budget?
Companies can optimize their IT budget by improving cost transparency, managing technology lifecycles effectively, increasing cost predictability and choosing flexible financing models like leasing.
What is Total Cost of Ownership (TCO) in IT?
TCO is the total cost of technology across its lifecycle, including acquisition, deployment, maintenance, support, replacement, storage, disposal and cost of capital.
How can companies calculate their IT TCO?
An accurate TCO calculation should consider the organization's specific technology, lifecycle, operational and financial requirements. CHG-MERIDIAN can help develop an individual TCO calculation based on these factors.
How can companies make IT costs more predictable?
Usage-based models such as leasing or rental can replace large upfront investments with predictable monthly payments. Early procurement can also help secure prices and technology availability.
How does lifecycle management help reduce IT costs?
IT lifecycle management helps organizations align technology refreshes with actual business and technology requirements, reducing unnecessary costs and making better use of IT investments.
