7 Smart Ways to Trim Your Company's Budget

Paul Graham, Y Combinator
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Make Good Use of All the Free Software That Exists

"A recession is a great time to ask yourself, Why am I spending so much money on IT?" says Paul Graham of Y Combinator, a Cambridge, Massachusetts group that funds high-tech start-ups. "If you go to a typical Silicon Valley start-up, you will find that its IT expenses consist of laptops, Internet connections, servers, and nothing else," Graham says. "It uses free Web-based software like Gmail. Large software companies spend huge amounts of money sending very convincing salespeople to come and sell you their products. But most companies don't need to pay $1,000 a head for software."