Companies are cutting costs by upgrading less and stretching the life of existing products. Even vendors are adapting to IT's newfound conservatism by slowing development cycles and extending support options to their older lines.
While this approach may save you a few dollars today, if you want to save even more in the future, consider the following options for cutting IT costs.
Hire only people who are competent, and fire those who are not. Don't settle for "good enough" employees.
Quit demanding more speed from your hardware and more features in your software. An 800-MHz chip is plenty for most employees. Your CAD and publishing people need the fastest machines you can find at a reasonable price. No one else needs that kind of speed.
Do you really need that multi-million-dollar ERP package? There are high-quality alternatives for most vertical markets without the huge price tag. If you spend twice as long in the implementation phase but you still save money, you're better off. If you are forthright with your customers, and help them to understand that struggling with an implementation for six months longer will knock a zero off the cost and result in added vertical-market functionality, they are likely to support you.