IT Infrastructure Cost Optimization Strategies 

IT Infrastructure Cost Optimization Strategies 


Organizations often look at infrastructure cost reduction strategies in order to be better aligned and higher performing. The main advantages of having such a strategy include increased probability of executing organization strategy, enhanced alignment of business functions with objectives, reduced cost inefficiencies and minimized impacts of organizational bottlenecks. Resource utilization and internal savings are few of the new prospects for cloud cost optimization and IT infrastructure cost reduction. 

Organizations must take appropriate measures for effect infrastructure cost optimization. A few of these measures are listed and discussed below. 

Cloud Storage 

IT costs have been sky-rocketing due to increasing amounts of data created and utilized and high focus on user experience. Cloud solutions help in cost optimization and thus organizations have started moving to cloud storage for effective delivery of workloads. Storing data on the cloud is secure and it leads to optimized operations and maintenance while boosting productivity. 


Reducing the number of physical servers results in lower requirements for management and maintenance of hardware. With this in mind, organizations have been replacing physical servers with virtual machines and experiencing lower hardware costs. Additional benefits include saving on firmware and energy bills. 

Software-Defined Data Center 

Software defined data centers (SDDCs) help organizations to leverage computing, storage, network and telecommunication functions in a cost-effective manner. This allows organizations to overcome financial and time constraints associated with purchasing and maintaining hardware. 


According to the McKinsey Global Institute, outsourcing IT services help organizations achieve 60% cost reduction. By outsourcing IT services, organizations can focus on their core competencies and create superior services efficiently.


Targeting Immediate Impact 

Recurring costs that impact short-term business growth must be eliminated, reduced or suspended. These costs are usually those which are paid on the ‘pay-to-go’ basis or monthly or quarterly instead of annually.