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BLOG: Green IT- a key for long-term savings

Jason Ogden | June 6, 2013
Five tips used by forward thinking businesses in Asia that have adopted a more responsible work environment and saved costs as a result.

Organisations today are operating in a fast-changing, interconnected world where globalisation and economic policies affect changes in resource utilisation and impact purchase decisions. Assessing the potential environmental impact of operating a business may therefore not be an absolute priority, when companies are looking for ways to improve productivity and improve their return on investment.

However, Green IT is not as complex as people think it to be. It also does not necessarily mean luxury spending with few measurable benefits that require huge investments and an eco-conscious work environment. On the contrary, going green has helped businesses save. Companies such as Network Hardware Resale have helped businesses save 50-90 percent on their network hardware costs alongside saving 1.78 million kg of potential e-waste from being dumped into landfills every year.

In today's market, when governments question productivity levels and businesses feel suffocated managing resources under tighter economic conditions, industry experts suggest  rethinking IT investment decisions can help save the day.

Here are five tips used by forward thinking businesses in Asia that have adopted a more responsible work environment and collectively saved US$70 million in 2012:

1.       The 25-75 rule: Business owners are often caught unaware of the ratio of core versus supporting network equipment. The core network helps with all the things that give your business an edge and stay ahead of the curve. The cost of this is only 25 percent versus the 75 percent that businesses spend on maintenance and support. When times are tough, it is usually the 25 percent that gets slashed which impacts a business's productivity and growth. Companies can better manage the 75 percent budgets that are currently being used up to support networks and seek out available alternatives on network and maintenance services that can help businesses slash these costs by as much as 50-90 percent.

2.    Make your network investments work harder: Network hardware is a capital investment and you want to ensure you get the most out of your purchase. Some networks are built to last up to 33 years (depending on the equipment type) but many companies toss the equipment out when they're told to upgrade - very often within three to five years of their purchase. Throwing away absolutely still functioning equipment and pre-mature replacement may at times take away huge portions of IT budgets. Extending the useful lifespan of equipment, mixing and matching new with used/pre-owned equipment could help provide the same (if not better results) alongside sparing your valuable IT resources.

3.       Consider leasing equipment for short term requirements: Leasing can work as a smart alternative for companies that need computer networking equipment for periods ranging from three months to five years. This further helps conserve capital and minimise purchase risk. Leasing does not require a significant down payment, and payment terms are usually fixed. Leasing networking equipment also reduces the risk of making unnecessary investments needed for short term usage. 


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