For all the work you put into running your business, you want to get the most out of it – on so many levels. For several posts, we’ve been discussing ROI and the sometimes hidden factors that impact it. It costs a lot to run a business, even if you can’t see all the expenses. To receive a return on what you’re pouring in, you have to understand what’s going out.
Does it seem like the dial on your cost calculator keeps ticking higher and higher, and you can’t figure out why? You’re not alone! There are myriad reasons why reducing your operating costs is a challenge. Here are a few of the big ones relating to IT.
1. Too Much Time Spent Managing IT Solutions
Many businesses think an in-house IT solution will be more cost-effective, but end up hemorrhaging money trying to keep it up and running. On-premise servers need to be maintained, updates need to be manually installed and multiple systems are needed for different functions. Plus, you need the people to run it all!
SOLUTION: Optimization and automation. A fully hosted software solution, managed through one user-friendly system, will provide users and customers access anywhere, anytime through the Internet or mobile devices. Updates are automatic. Information is in one place. Everyone has access. This means employees can focus on other areas of ROI.
TCO Impact: 25% decrease in time spent managing IT solutions.*
2. Too Much Money Spent on Your IT Infrastructure
To build and maintain an IT Infrastructure, you’re paying for it every step of the way. This includes purchasing software, licenses, servers and data backup solutions. The whole kit and caboodle.
SOLUTION: Don’t. Those costs are virtually eliminated when you use a third-party software solution.
TCO Impact: 100% reduction in web-server and database costs.*
3. Too Much Time AND Money Maintaining PCI Compliance
Minimum PCI compliance has 6 major objectives and requires 12 major steps, making it difficult and expensive to meet standards. Without the support of a partner, that’s all on you.
SOLUTION: You want data protection, and a vendor-owned PCI infrastructure takes that weight off your shoulders.
TCO Impact: 75% decrease in PCI Compliance costs.*
4. Too Much Risk Processing Credit Cards
Did you know 50% of organizations have suffered at least one security incident in the last 12 months? A YMCA managing their own credit card interactions is liable if there’s a security breach that exposes members’ credit card data. Talk about a nightmare – and a very plausible one.
SOLUTION: A vendor with PCI Level 1 Compliance, like ACTIVE Net, takes on all liability when it comes to credit interaction. Plus, they eliminate the need to purchase software, servers and data backup solutions.
TCO Impact: 100% reduction in risk and exposure from processing credit cards.
In addition to these, there’s also the cost of loss and downtime, which are impossible to calculate, but potentially catastrophic. Investing in a smart partnership is the name of the game if you want to optimize ROI. Taking on all the inherent liabilities of business ownership by yourself may prove to be too costly. Fortunately, investing in a time-tested and reliable software solution can reduce your total cost of ownership – and give you peace of mind (priceless).
*While these impact numbers are drawn from real ACTIVE Net use cases by a third-party auditor, they are not guarantees. And since the solutions recommended here involve the cost of software, these expected impacts are intended to be factored into a Total Cost of Ownership evaluation for software ROI purposes.