IT Cost Optimization solutions can enable Finance and IT to fund strategic innovation and competitive advantage. In several case studies on IT optimization by a leading analyst group, enterprises implementing IT Cost Optimization solutions could save millions.* Although not all costs are accessible, and IT cost optimization projects should not attempt to boil the ocean, there are enough “low-hanging fruit” opportunities to yield material success.
IT Cost Optimization consists of several constituent elements that come together to provide the visibility and collaboration necessary to sustain innovation investment based on IT.
The Four Dimensions of IT Cost Optimization
Optimizing IT costs might seem to be an overwhelming, never-ending task. However, with a correct multidimensional approach, one that builds on many basic IT asset management principles, the benefits are achievable. Using this multidimensional approach, costs can be optimized on an ongoing basis without overwhelming staff and resources.
There are four key dimensions to the multidimensional approach discussed:
- Cost Elasticity. The ability to accommodate how costs for hardware and software can vary as a result of virtualization, clustering, and Cloud configuration changes is critical. Additionally, costs can be represented for the ways public Clouds and outsourced data center services are implemented.
- Integrated Configuration Discovery. Configuration is no longer static, and reflects the rate of change felt in all parts of the organization. Since traditional IT asset management systems often rely on configuration data from other vendors’ products, and since accurate modeling is dependent on the quality of information maintained about those assets, this split of functionality across vendors introduces a great deal of risk. Enabling IT Cost Optimization that can be used with confidence means ensuring that configuration discovery is integrated into IT Asset Management tooling.
- Usage Analysis. Identifying, to an almost forensic level, the human and application users of any group of assets whose costs are necessary for modeling.
- Expense Modeling. Once the configuration is understood, the cost models and the extent to which the chargeable assets are being used are determined, IT can begin to model configuration changes that reduce expenses without impacting services.
These four dimensions combined yield actionable analysis. The outcome of this multidimensional approach to IT Cost Optimization is a set of configuration changes, such as relocating virtual machines, rationalizing underutilized services, recycling or retiring unused software, or de-commissioning unneeded hardware. Each of these changes has with it a direct cost impact that enables clear prioritization.
The Benefits of IT Cost Optimization Solutions: Make Better Business Decisions and Fund IT Innovation
With the four dimensions of IT Cost Optimization in place using an agile, accurate, actionable source of information such as Scalable’s Asset Vision®, IT, Finance, and Procurement can:
- Rationalize current IT assets—retiring some and recycling others as needed—with confidence there will be no negative effect on the organization.
- Partner on reliable “what if” scenarios for technology and infrastructure investments.
- Assess the impact of outsourced services and technologies in varying forms.
- Fund IT innovation, rather than spending more than is required to maintain “lights on” activities.
- Improve the organization’s competitive position.
How Asset Vision Can Help
To enable IT cost optimization and greater IT cost transparency, Asset Vision automatically and accurately gathers everything necessary from the IT estate and IT environments.
Expense management inside Asset Vision enables the various forms of hardware and software charging metrics to be calculated and forecast. From software models such as factored core counts and value units to cloud models for hardware costs, an extensible model to support the common models of cost elasticity provides a baseline for IT cost optimization.
The charging models are support by class-leading and fully integrated discovery and inventory. Organizations do not need to rely on fragile imports of data from external systems that invariably lack the discovery resolution and scope to get the job done. Without the aid of agents Asset Vision can scan physical and virtual hardware, clusters, software, and high-value services such as database management systems, to ensure optimization strategies address meaningful opportunities to save money.
Layered on top of Asset Vision’s discovery data are focused usage measurement features. These measurement features details the extent to which the underlying hardware, software, and services are used in support of the business. This information gives organizations the confidence to identify those systems no longer required, and where consolidation can occur.
A collateral benefit of the advanced discovery features of Asset Vision is the ability to accurately determine software license usage. When combined with Asset Vision’s license management support, an organization can add software compliance planning to the value provided when reducing costs and optimizing the asset performance of their company.