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The art of changing the cost trajectory of IT: Part 1

9001824_m.jpgby Lee Kedrie, Managing Partner


In my previous blog, The Art of the Cloud, I discussed the art of the possible and how Cloud enables the change trajectory of IT by leveraging technologies like HP CloudSystem Matrix as a foundation for transforming how IT is provisioned as a service. 


During this blog I would like to dive deeper into the discussion to further explore what it means to change the cost trajectory of your operations, to more efficiently manage your steady- state run costs so that you have more dollars to spend on business innovation.  To accomplish this, you must approach IT provisioning as a means of transforming service delivery. Your first step is to be open to doing things differently -- not just better.


Before I dive in, I would like to establish my point of view (POV) on two commonly used words in IT: transformation and optimization.  Understanding my POV on these words will be important because I will be comparing and referencing them throughout this blog and this series on IT Transformation.  I define transformation as doing what you do differently, and I define optimization as doing what you do better.   I believe to change the cost trajectory of your IT organizations you will need to transform - or do what you do differently to achieve this objective.


Today most IT organizations are optimizing their environments using point solutions to improve physical asset utilization and achieve target staffing efficiencies.  Examples include server virtualization deploying virtual machine instances, storage virtualization utilizing thin provisioning and networking optimization use VLANs.  In this scenario, each technical silo is busy implementing their solution and achieving incremental gains in asset utilization and staffing efficiency, but fundamentally the overall delivery process is the same.  It still requires a physical operational hand-off between each technology silo.  The optimization of each silo can result in the overall reduction of provisioning time -- but it will not translate into the transformed self-service experience that is expected by today’s savvy IT customers.


Optimizing technology silos alone is just not enough in today’s business environment to satisfy the demand and expectation of IT users who live in a cloud-connected world.  Users expect the smartphone application store experience.  I have often heard users pose this question to their IT managers, "Why can't you deliver IT services the way I get applications on my phone?”  Well the answer is – you can!  You can create an environment where IT can deliver services in a like manner if you are willing to transform and look at your IT Delivery as an automated supply chain.


In my next blog, I’ll tell you how.


Check out Lee’s other blog-post @ The Art of the Cloud,

Find out more about HP CloudSystem Matrix 7.0 Services by visiting our website.

Find out more about HP Cloud Design Service by visiting our website.

Meet Lee and his HP colleagues @ Meet the HP Technology Experts.

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