IT Cost Optimization is a continual effort by all IT organizations. It is not only about removing cost, but also making sure current capabilities are being executed in the most efficient manner possible. The need to free up resources to move from tactical to more strategic initiatives is critical in meeting changing business needs and implementing the most appropriate technology advancements.
IT departments that implement effective IT Cost Optimization solutions are able to easily maintain total cost transparency in terms that can readily be understood by line-of-business executives. This cost transparency enables those same executives to participate in efforts to reduce IT costs by optimizing configurations, thereby freeing resources for innovation and M&A support.
It’s just not enough to understand the baseline configuration of the IT estate. It is equally important to be sensitive to the relationship between configuration and the deployment of software. For example, the movement of a database onto a server that is part of a cluster may well increase costs by an order of magnitude. Understanding the interplay of licensing, virtualization, and clustering is essential if “lights on” IT costs are to be driven down.
Another piece of the puzzle is understanding the extent to which the chargeable IT assets are used. It is not uncommon for larger organizations to have numerous servers, holding expensive licenses, supporting non-existent workloads. Being able to identify by whom and how each of the components of business system are used is essential if a more optimized implementation is to be designed.
When configuration and usage of existing systems are understood, it becomes possible to model new configurations to assess the potential impact on future expenditure. For example, knowing that a particular dedicated database service is used rarely would enable an informed decision to move it onto a shared machines instance, thereby freeing up the originating machine–but the target implementation would need an optimized license configuration in order to avoid triggering unexpected license charges. Decisions concerning these permutations can be managed in an automated fashion using IT cost optimization modeling tools.
Technology can play a critical role in securing long term competitive advantage and improving customer service. Innovation driven by IT is an imperative for competitive success, but too often the investment in innovation is sacrificed to “lights on” expenditures. IT cost optimization savings can be significant; the savings offered by precision IT cost optimization can fund the innovation organizations need.