# Q2 2024 IT Expense Report

## Introduction

As we continue to drive innovation in the electric vehicle market, it is essential that we monitor and optimize our IT expenses to ensure alignment with our business objectives. This report provides an overview of our Q2 2024 IT expenditures, highlighting key areas of focus and opportunities for cost savings. The purpose of this document is to inform stakeholders of our current IT expense landscape and provide recommendations for future cost management. The following sections outline our key findings and insights.

## Software Asset Management Process Review

In Q1 2023, our IT department initiated a comprehensive software asset management (SAM) process review to ensure compliance with licensing agreements and optimize software utilization. This effort involved conducting an inventory of all software assets, identifying areas of inefficiency, and developing a plan to address these gaps. As a result, we were able to renegotiate contracts with several key vendors, yielding an estimated 8% reduction in annual software maintenance costs. The SAM review also informed our development of a new software request and approval process, which has streamlined the provisioning of software tools for employees.

## Cloud Infrastructure Cost Optimization Strategies

To support our growing electric vehicle business, we have been exploring opportunities to optimize our cloud infrastructure costs. In May 2024, our cloud services team conducted a thorough analysis of our Amazon Web Services (AWS) usage patterns, identifying areas where we could leverage reserved instances and autoscaling to reduce costs. By implementing these optimizations, we expect to achieve a 12% reduction in AWS costs over the next 6 months. Additionally, we are evaluating the potential benefits of migrating certain workloads to Microsoft Azure, which could further enhance our cloud cost efficiency.

## Q2 2024 IT Expense Breakdown and Analysis

Our IT expense breakdown for Q2 2024 reveals that hardware costs accounted for approximately 35% of our total IT expenditures, driven primarily by the procurement of new laptops and mobile devices for our sales team. Meanwhile, network and telecommunications expenses comprised around 20% of our IT spend, reflecting our ongoing investments in network infrastructure and cybersecurity measures. To better manage our IT expenses, we are developing a new IT service catalog that will enable more granular tracking and analysis of our IT costs. This initiative is expected to be completed by the end of Q3 2024.

## Conclusion

In conclusion, our Q2 2024 IT expense report highlights the need for continued monitoring and optimization of our software licensing costs. By implementing the recommended cost-saving strategies and process improvements, we can ensure alignment with our business objectives and drive future growth. The IT department will work closely with stakeholders to implement these recommendations and track progress. Future reports will provide updates on our progress and identify new areas for improvement.
