How to reduce operating costs with cloud solutions
Last updated: 2 November 2026
Short Summary
The best way to reduce operating costs is to consolidate all IT system expenses into one overview and then find subscriptions and licenses that are no longer used. Then, prioritise saving actions by impact and start with those that yield the most with the least effort. Cloud solutions and automation can also reduce costs in the long term.
- Consolidate all subscriptions, licenses, equipment, and network services into one overview.
- Cancel unused software licenses, which could save about 30,000 ISK per month.
- Prioritise actions by savings and effort and start with quick wins.
- Automated backups and updates reduce staff workload and errors.
- Do not cut back on security, as one cyberattack can cost a company significant work and revenue.
Table of Contents
- Analyse where costs lie in operations
- Prioritise saving actions by impact
- Cloud solutions for businesses and real savings
- Operational automation that saves time and money
- IT outsourcing for small and medium-sized businesses
- Savings without compromising security or service quality
- Next step: Book a system analysis for your company with nexIT
- Frequently Asked Questions
Analyse where costs lie in operations
Most companies don't know what their IT systems actually cost them. The costs are spread across many accounts, subscriptions, and devices, and no one sees the big picture. Therefore, the first step to reducing operating costs is to summarise what you pay for and what you pay for.
Consolidate all IT system expenses into one overview
Start with a simple sheet or table. On the overview of the best tools for central access control, you can see which tools help to view user management costs in one place. Record all subscriptions, licenses, hardware, network services, and phone costs. Don't forget payments that only occur once a year.
- Software licenses and subscriptions
- Computers, printers, and network equipment
- Network services and data volume
- Support agreements with external parties
- Data backup and storage
When everything is on one sheet, it is often immediately apparent where the highest costs lie.
Find unnecessary costs you pay for without using
Many pay for subscriptions that no one uses anymore. Employees leave, projects are completed, but the licenses keep running. Ask yourself if every line item on the overview is still in use.
Caution: Do not cancel a subscription without knowing if anyone relies on it. Check with managers and teams first.
Prioritise saving actions by impact
Don't try to do everything at once. Prioritise actions based on how much they save and how easy they are to implement. Start with what yields the most with the least effort.
A good rule is to place each action into one of these categories:
- Quick and high savings: Do this immediately
- High savings but takes time: Plan for the long term
- Low savings: Do this when time permits
To do this systematically, calculate the estimated savings of each action and compare it to the cost of implementing it. A simple assessment is to weigh savings against work and time.
Also, keep risk in mind. Some actions can reduce security or service if they are performed without preparation. For example, turning off two-factor authentication might save a small amount but increase the risk of intrusion. Therefore, it is important to assess whether the savings justify the risk.
| Action | Estimated monthly savings | Implementation cost | Risk | Priority |
|---|---|---|---|---|
| Cancel unused software licenses | 30,000 ISK | 2 hrs. | Small | 1 |
| Combine internet service and phone costs | 15,000 ISK | 4 hrs. | Small | 2 |
| Automate backups | 10,000 ISK (less work) | 8 hrs. | Small | 3 |
| Review support agreement | 25,000 ISK | 6 hrs. | Medium | 4 |
| Move some systems to the cloud | 40,000 ISK | 40 hrs. | Medium | 5 |
This is a simple but realistic estimate. You can use a spreadsheet to set up a table like this for your own expenses. The key is to start with actions that yield quick results and then build on them.
Caution: Don't forget to consider other cost items such as staff training or disruption to daily operations when estimating the total cost of an action. Sometimes a small saving can be expensive if it causes significant disruption.
Cloud solutions for businesses and real savings
Cloud solutions can reduce costs because you pay for what you use, instead of buying an expensive server that sits unused most of the time. Maintenance, updates, and backups also become part of the service.
When is a move to the cloud worthwhile
Moving is usually worthwhile when the old equipment is aging, maintenance costs are increasing, or staff need to work from anywhere. It also pays off when the company is growing and needs flexibility.
Moving certainly costs money initially, so do the math before you start.
What can go wrong during data migration
Data migration is the most sensitive part of the project. Common mistakes include forgetting data in old systems, copying incomplete data, or not following privacy regulations. Always perform a test migration first and check if everything transferred.
Operational automation that saves time and money
Automation takes over repetitive tasks such as backups, updates, and access control. It saves staff time and reduces errors. Start with the tasks you do most often.
- Automated backup every night
- Automated software update
- Automated access allocation when a new employee starts
IT outsourcing for small and medium-sized businesses
Many small businesses have only one employee responsible for IT. On the IT outsourcing page, you can find criteria for when IT outsourcing is worthwhile for small and medium-sized businesses. When they are sick or on holiday, everything stops. Outsourcing can solve this by bringing in experts on a fixed contract.
How to assess if outsourcing pays off
Compare the costs of an internal employee, including salary, sick leave, and training, with the price of outsourcing services. Also consider security, response time, and what happens if the service provider fails.
Prices depend on scope and service, so contact nexIT for a quote that suits your business.
Savings without compromising security or service quality
It is tempting to cut costs everywhere, but poor security costs more in the long run. A single cyber attack can cost a company a lot of work and revenue. Prioritise security and backups when you cut costs.
Ask yourself this question before cutting costs: Would this weaken our defence or make data recovery more difficult?
| Action | Savings | Risk |
|---|---|---|
| Cancel unused subscriptions | Significant | Small |
| Automatic backup | Medium | Small |
| Cut down on security services | Different | High |
Next step: Book a system analysis for your company with nexIT
Want to know where costs lie in your company? Read about how IT systems are moved to the cloud and compare internal IT and service providers to evaluate options. Contact us to book an analysis.
Frequently Asked Questions
How can a company reduce operating costs?
The first step is to summarise all expenses, both fixed and variable, and analyse what is actually useful. Many smaller operators find costs in subscriptions, software licenses, and IT systems that no one uses anymore. Once an overview is available, it is simplest to prioritise actions based on how much savings they yield and how little risk they entail. Pricing and costs depend on the scope and circumstances of each company; contact nexIT for a quote based on your systems.
Can cloud solutions reduce company costs?
Cloud solutions can reduce costs because companies pay for what they use instead of buying and maintaining their own hardware. Maintenance, backups, and updates are often transferred to the service provider, reducing the burden on staff. However, savings depend on how the systems are set up and how well they are utilised. It is advisable to compare current costs with estimated cloud costs before making a decision, and nexIT can assist with this comparison without obligation.
How can automation save a company time and money?
Automation takes repetitive tasks such as backups, updates, and onboarding new employees and runs them automatically. This frees up staff time for tasks that deliver more value and reduces errors. Start with the task that takes the most time today and measure what it costs now, so you can see the results later. Implementation costs depend on the scope and are best assessed in an analysis.
How can you save money without reducing service quality?
The key is to reduce costs where they provide no value, not where quality matters. Backups, network security, and staff support should remain priorities. Savings are more likely to come from better utilisation of licenses, fewer but better tools, and outsourcing tasks that require specialised knowledge that the company does not have in-house. Measure quality before you make changes and monitor it after the change.
