A study conducted by the global web host 1&1 Internet Ltd. has revealed thousands of British companies are wasting hundreds of pounds each year when it comes to their IT services.
The research took information from 750 small and medium businesses in the UK. What it showed was these businesses tended to spend more money on IT services than any other type of organisation. These calculations used the maximum IT requirements for the specific company, as opposed to how much the firm used their IT facilities; to avoid distorting the results through reduced usage in quiet periods of the year.
The average business owner admitted there was a 12% reduction in how much they were spending on IT services during the quieter months of the year. For a company with average IT costs, this equates to savings of £432 per year. 1&1 gave some additional advice to companies in this position; they said cloud-based options can help them reduce their costs whilst maintaining performance.
1&1’s study also discovered most companies are not looking at the best deals for their IT service costs very often. Average companies spend £3597 each year on their IT services, which includes the cost of maintaining an Internet connection and electronic storage facilities. According to a third of the study group, their companies paid the same amount each year whether the business was doing well or not. This figure increased to 40% for businesses with fewer than 10 employees. A total of 11% of the study group said they changed their IT services to match their business performance.
The CEO of 1&1, Oliver Mauss, commented: “Even the smallest firms should explore technologies that scale and adapt to their business goals and performance. Hosted solutions such as Cloud servers are a good example of how firms can leverage full performance but only pay for the resources they need, when they really need them.”