|
One
of the many ways to prioritize cost-savings efforts
is to look at the four major categories where savings
typically come from for expenditure reductions:
1. |
Staffing
– Consolidation yields reductions in staffing
for operations and systems support, help desk
and network support, application development and
LAN administration. Moreover, skill levels can
be improved via best practices, which also drive
down costs. |
2. |
Hardware
– Reductions in hardware costs can result
from a lower total requirement for storage. Consolidation
often necessitates re-evaluating the storage management
policy and the degree of functionality that is
available from vendors. Consolidated systems require
greater focus on large-scale backups, shared storage,
increased machine use and common systems management.
|
3. |
Software
– Greater discounts can be negotiated when
purchasing systems from fewer suppliers and in
larger average-order sizes. For many large-scale
systems, the incremental cost for software decreases
as systems get larger. For smaller systems, a
merger can reduce duplicate licensing. |
4. |
Facilities
– Cost reductions also accrue as a
result of using less floor space, mainly because
of reduced rental expenses and lower power consumption.
However, these costs are not often allocated to
the IT budget. These are potential costs. Without
careful study, some costs can rise (such as software
costs). |
Learn more about cost-saving strategies for
midsize businesses. Click
here to qualify to attend Midsize
Enterprise Summit as our guest in 2004.
Reference:
General Session, Midsize Enterprise Summit
Tips for Saving Money in IT
Presented: September 11, 2003
Presented by: Jack Heine, Vice President, Gartner
|
