How important is it to cut cost in the current pandemic situation?
A question worth a million, can save millions. Since the global pandemic has set in, we are heading toward a thrift business environment and this situation has greatly changed the consumer spending behaviors all around the world.
You would have woken up to a world where campaign strategies are aligned with cutting costs rather than investing in a cutting-edge technology to achieve business goals. This Global Pandemic has forced companies to choose cost-cutting in targeted domains to achieve long term, desired and sustainable results.
On the leadership front, choosing the right domain remains the biggest challenge in implementing cost-cutting measures. Business leaders have been haunted with questions such as, where to cut costs? Am I being too conservative in spending? Am I doing the right thing now? Following is a quick guide which would help you answer these haunting questions.
Oracle to PostgreSQL migration – A guide to cut costs
1. License cost
If you are paying a high license fee for your database maintenance and support you may have to forego the maintenance cost and migrate to a simpler, less costly/free database in pursuit of cost-cutting measure. For instance, businesses using Oracle Database can migrate to open source database like PostgreSQL and save license cost up to 100%.
2. Total cost of ownership
Experts in these testing times say that a strategic change in costing can reduce total cost of ownership (TCO) to a greater length. The change can be as small as choosing a license fee free database over licensed databases and still be able to add additional features free of cost. Through this move, net TCO can be reduced by 25% or more.
3. Shout it out Loud, Be on Cloud
This could be the right time to reap the Cloud benefits to overcome the operational cost arising out of datacenters. You may choose to migrate to Cloud environment such as AWS and Microsoft Azure with the help of your Cloud partners. The maintenance cost of Cloud based services are 31% cheaper than DC/Rackspace.
4. Free scalability and automation
While this pandemic situation may cause a demand spike for Cloud based operations it is likely a business expansion plan may be in place. Hence, choosing a database that allows free or low-cost scalability is the wise thing to do at this hour. For instance, Oracle charges are hefty when you plan to scale up to an enterprise edition but by choosing databases like PostgreSQL, you may save a lot on marginal cost.
5. Support Cost
Off-late support cost of databases like Oracle is skyrocketing and comes around 25% of the licensing cost. Choosing PostgreSQL will allow you to save support cost, as the Support for PostgreSQL is provided by community. For businesses, which feel that community support may be time consuming, PostgreSQL comes with paid support package which is 80% lower than the support cost of databases like Oracle.
Now, these are the five most prominent areas where you can cut cost through technological changes. To implement these technological changes, choosing a right partner is also a key in determining your cost-cutting strategy. Your implementation partner can help you choose after assessing your current environment, by choosing the right tools and come up with a road-map for impacts, and train your workforce. The implementation partner may be chosen through a competitive bid and you can get the best deal possible for lowest price.
Further, many administrative measures like freeze on hiring, Administrative cost-cutting, outsourcing IT applications support, and Salary cuts are at the discretion of the individual enterprises to decide upon. In these testing times, it is important that cost-cutting is induced through technology to safeguard the business and the scope of your employees.