Technology, IT Performance

Drive Out Excess IT Costs? What Excess Costs?

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If driving out excess IT costs still ranks high on your to-do list, you are probably barking up the wrong tree. Enterprise CIO Forum editorial director Bill Laberis...

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pcalento
Paul Calento 256 Points | Wed, 03/28/2012 - 17:10

I'm going to disagree that there aren't any costs to cut anymore even after cloud is deployed. Moving to the cloud can/may result in process change. By moving non-strategic assets off premise tehre can be additional determinations as to what systems are now redundant. Just because a solution/service/application exists, cloud or otherwise, doesn't mean that it needs to be there ... and that leads to further cost reductions.

--Paul Calento

(note: I work on projects sponsored by EnterpriseCIOForum.com and HP)

jdobbs
Joel Dobbs 310 Points | Tue, 03/27/2012 - 01:17

Bill,

 

Couldn’t agree more.  The “post-Y2K era you speak about as well as the cost cutting across all areas of most businesses that resulted from the more recent “great recession” has left little financial fat in most organizations.  I have always believed that one must starve innovation.  It is only in situations of lean financial conditions that one truly gets innovation.  As the old saying goes, “necessity is the mother of invention” (or innovation in this case).  That is why so much innovation comes from lean, “hungry” startups and from lean times in the business cycle.  Throw money at innovation and you get bureaucracy.

 

The other advantage from lean times is that you stop doing stupid stuff.  The very conditions that led to outsourcing of non-core functions and now the exploitation of the many possibilities of cloud computing and SaaS  means that many IT groups are not wasting resources on routine, low value added activities that someone else can do better and cheaper.  This should free the remaining staff for more value-adding activities. One hopes that CIOs and their staff see this for the opportunity that it is.