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Are IT Costs Eating Up More and More of Your Budget? Here’s How to Cut Back Smartly

Heather Armiger by Heather Armiger
June 21, 2025
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IT expenses quietly take up a bigger chunk of your budget every year. Before you know it, you’re spending way more than necessary. Want to get things back under control? These five tips can help you save money without sacrificing what really matters.

Table of Contents

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  • Know What You’re Paying For
  • Get the Number of Licenses Right
  • Choose Flexibility Over Fixed Fees
  • Don’t Forget to Compare Prices
  • Keep IT In-house or Outsource?

Know What You’re Paying For

Most companies treat their IT contracts like energy bills they just renew them without a second thought. But it’s worth taking a moment to look at them properly. What are you actually paying for? What do you get in return? And do the services from your hosting provider, web developer or external IT support still match what your company really needs? You might be paying for more than you use.

Get the Number of Licenses Right

Checking contracts is just the start. Here’s a more specific example software licenses. Are you paying for more users than you actually have? It’s surprisingly common.

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Maybe you’ve got licenses for 50 people, but only 30 work at your company. Or maybe you’re still paying for features nobody touches anymore. That’s money slipping through your fingers. A good way to stay on top of this is by outsourcing this to License Q, an IT partner that helps you manage your Microsoft licenses. It shows you exactly what you’re using, what you really need and whether you’re overpaying. That way, you’re always in control and never waste money on licenses that just sit there unused.

Choose Flexibility Over Fixed Fees

Let’s zoom in a bit more on your server costs. A lot of businesses switch to external server hosting, and that’s usually a smart move. But some providers still work with fixed monthly fees based on your future growth. You might expect to grow to 30 people in two years, so you already pay for that much capacity now. If you want to save money and who doesn’t go for a hosting partner that lets you scale up or down as needed. That way, you only pay for what you actually use.

Don’t Forget to Compare Prices

Speaking of server hosting prices vary. A lot. So it’s a good idea to shop around. Take a good look at what your current provider is offering, then compare that to others. You might find another provider with similar or even better services at a much lower price. That kind of comparison can easily save you hundreds of euros a month.

Keep IT In-house or Outsource?

Big companies usually outsource their IT. It helps them scale easily and keeps their systems more secure. But if you’re a smaller business still handling everything in-house with your own server rack and a team to maintain it, it’s time to crunch some numbers. How much do you spend on servers, staff, maintenance, emergency services and updates? And don’t forget to factor in the risk of cyberattacks. If something goes wrong, repair costs can pile up quickly.

 

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Heather Armiger

Heather Armiger

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