As oil prices approach 18-year lows, companies around the globe are already beginning to feel the squeeze. Everyone we talk to points to corporate spending freezes and cost-cutting.
Bob Ronin, previously SVP at Fidelity Investments, writes on CIO.com that one of his top tips for reducing IT cost is to move to the cloud. "Storage and hardware no longer need to be on-site and the cost of renting can be much lower than the cost of owning as resources are only used when needed."
If history is a predictor of what to expect during the current dip in the economy, we'll see an immediate spending freeze followed by drastic moves to cut costs. The difference during this COVID crisis is that many of us are working from home and scrambling to make sense of what's to come.
So, what can you do now?
- Challenge the way you have been doing business and identify opportunities to update your processes and technology so that they better match today’s business environment.
- If any of your large expenses are IT platforms, determine whether you can replace them with cloud-based software. Working from home provides a great opportunity to do high-concentration tasks, like evaluating tools.
- Gather pricing, deal length, and contract terms for the products you currently use.
- Regroup internally for feedback and round-table idea sharing.
- Be ready to move swiftly when asked to make a change.
If you believe your department will be asked to cut costs in the coming months, now is the best time to prepare. Evaluate your options while you have an extra hour or two (since we temporarily do not have a commute).
If your company trades commodities and uses an expensive on-premise legacy system for deal-capture and risk management, we're ready to help. As ETRMs go, we deliver value by providing fairly-priced, modern software that automates your life, without the implementation & transition costs you usually see in our industry. Further, in these unpredictable times, a system backed by a team that's always remote, can provide support and reliability that nobody else can.
The sky may be falling, but Molecule is still working, as are many other companies across various industries that can help you get lean before it’s even time to migrate back to the office.
Stay healthy and safe. We're here if we can ever be of help.