The Next Big Thing
Posts about next generation technologies and their effect on business.

Value vs. Costs when optimizing IT

Recently, Gartner published an analysis describing where organizations should be focusing their efforts when optimizing IT costs and that it is an on-going process not a periodic event. It included the following diagram:

benifit vs. cost.jpg


Everyone knows that the IT spend for most organizations is locked into maintaining the existing environment. We’re all constrained by our previous success, so pruning the IT tree to generate new fruit can be painful. Even if you don’t agree with the placement of the various business components on this chart, this kind of simple cost vs. benefit analysis can focus your attention in useful ways. Keeping it updated as business needs change and new technology arrives is difficult.


All optimization efforts, whether it is in the application portfolio or infrastructure management, get down to an assessment of where does the organization need to generate value and where all the money is spent. With the trends taking place today and the abundance of IT capabilities available, even a simple, honest analysis can provide clarity of what needs to be done. Sometimes we need to assess our personal lives as well.


For organizations that have gone through mergers, significant amounts of “the spend” can be on redundant systems or those that no longer generate the value based upon the current needs. If a real owner can’t be found, turn the system off.


As organizations roll out BYOD, analytics or other techniques to inject information into the decision making process, some parts of the business IT systems may no longer be relevant.


IT business and technical leaders need to be vigilant and interact with their business counterparts to make the decisions and tough tradeoffs so that all may benefit. 

Kristina | ‎03-12-2013 01:39 AM

I always prioritize those equipment’s that will greatly benefit my organization that’s why when I am choosing computers or any electronic devices I chose the best brand possible in the market. I always want the best for my company and for the people that I hired to work for me.

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