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Winning strategies for IT purchases

January 4, 2013 by Valerie Helmbreck
Posted in: Budgets and spending, In this week's e-newsletter, Latest News & Views

Buying IT equipment, software and services isn’t like many ordinary business purchases. And the finance folks who have to cut these deals need some special strategies when they go shopping.

Cutting back on IT spending doesn’t necessarily mean your organization has to be stuck in a technological holding pattern.
With some lesser-used but greatly successful purchasing strategies, you can keep technology current while still saving money.

Talk to your IT folks about these three options:

Strategy #1: Purchase refurbished equipment. You can pick up a cheaper iPod that way – why not the bigger stuff? Many companies are buying refurbished IT equipment for significant savings.

Good for: Servers and other types of large equipment. Steer IT clear of going this route with networking equipment – there have been many reports of counterfeits.

Potential savings: 40%-50%. In some cases, firms report saving 90%.

Strategy #2: Purchase equipment at auctions. You hear the staggering bankruptcy stats all the time – why not turn it into a savings for your company? You can get a lot of IT equipment during asset liquidation.

Good for: Consumables, like printer cartridges.

Potential savings: You may be able to set your own price here. But be ready: It’s cash-and-carry.

Strategy #3: Max out what you already have. Your company could max out existing systems with new CPUs, memory and disk drives.

Good for: Major equipment, like servers.

Potential savings: 90% of what you would pay for a new eight-way server, instead of upgrading your existing two-way to an eight-way.

Adapted from “7 Easy Ways to Cut IT Costs You May Have Overlooked,” by Ephraim Schwartz, atwww.infoworld.com

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