10 Real Cost-Cutting Technologies For 2009

Server Virtualization

5 Key Players: Citrix, Microsoft, Parallels, Sun Microsystems, VMware

Server virtualization actually lets customers reduce the amount of physical hardware they require while providing a platform for expanded capabilities. Putting a dollar figure on the cost savings is fairly easy using software tools that assess a customer's environment, said Mitch Kleinman, president of Ryjac Computer Solutions, Irvine, Calif. "Our server virtualization methodology shows tangible savings," Kleinman said. "We've gone into a customer, dropped software on their server, and showed how much they'd save with virtualization."

Real World:One Ryjac customer invested $131,000 in VMware, two IBM servers and a SAN, saving $1.3 million in power, maintenance and acquisition costs over three years.

Software-as-a-Service

5 Key Players: Adobe, Microsoft, NetSuite, Oracle, Salesforce.com

Given the current economy, Software-as-a-Service solutions and their buy-what-you-need, pay-as-you-go model are all the more attractive.

"With SaaS, there is no need to install infrastructure and no up-front capital costs, which makes it very desirable in today's economic climate," said Eric Berridge, co-founder and principal at Bluewolf Inc., New York, which specializes in SaaS applications from Eloqua, Salesforce.com, SuccessFactors and Xactly, among others.

SaaS solutions require fewer infrastructure resources on the customer side to deploy, run and manage vs. packaged software, and they help cut requirements for on-site maintenance and support staff. They also typically offer more flexibility and are quick to roll out.

Real World: By implementing SaaS applications, Bluewolf helped a cable services company improve sales-lead qualifications and reduce its sales cycle by 40 percent.

Thin-Client Computing

5 Key Players: Citrix, IBM, NComputing, Symantec, VMware

Recent advances in thin-client technology—along with increased interest in improving IT efficiency—have led to renewed interest. Advantages such as lower hardware, IT administration and energy consumption costs make such solutions extremely attractive, said Wade Wyant, managing partner of ITS Partners, Grand Rapids, Mich. "In this climate, you need to look at technologies that offer instant ROI for customers," he said.

Real World: Insight Public Sector outfitted Florida's Seminole County Schools with an NComputing solution, saving it 50 percent on hardware, 70 percent on life-cycle maintenance and 90 percent on energy.

Unified Communications

5 Key Players: Avaya, Cisco Systems, Microsoft, Nortel, ShoreTel

It may sound expensive on the surface, but unified communications has a proven track record for delivering rapid ROI. By tying together VoIP, IM, e-mail, videoconferencing, smartphones and PDAs, VARs can help customers cut costs and generally do more with less. Cisco Systems, Microsoft, Avaya and others have been preaching the ROI story for years, and solution providers and end customers are catching on.

"Through [unified communications] we can consolidate vendors, improve corporate productivity, reduce hard costs and reduce our customer's overall bottom line," said Glenn Conley, CEO of Metropark Communications, Chicago.

Real World: Metropark used AltiGen IP telephony and conferencing products and 3Com gear to save a medical equipment sales outfit $10,000 per month in telecom services.

Videoconferencing

5 Key Players: Cisco, Lifesize, Microsoft, Polycom, Tandberg

Travel budgets often take a hit when times are tough, but that doesn't mean businesses have to cut back on face time with contacts. And as improvements such as high-definition video and telepresence go mainstream, the videoconferencing experience mimics real-life meetings more than ever.

"We've got technical experts that are available to all of our salespeople, but they're centralized," he said. "They can meet with four customers in four parts of the world all in the same day and never travel," said Charlie Macli, executive vice president of sales and marketing at IVCi LLC, Hauppauge, N.Y.

Real World: IVCi implemented a Polycom VCX 7000 videoconferencing system to help an expanding East Coast-based law firm cut travel to its West Coast offices by 25 percent.