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Gartner: IT Cost optimization

CIOs face a difficult task, when emphasis is put on saving on IT, while IT is to be used to save in business or innovation to keep business alive. Services like Uber have shaken stable businesses in many business sectors and it seems that no sector is safe – without innovation, a company can suddenly go bust. Therefore, the following aspects must be distinguished:

"Speed is the new currency of business(M. Belioff – CEO of Salesforce)

 

Source: Gartner *

If we want to maintain continuous cost optimisation, the follwing fundamental principles should be observed in companies according to Gartner:

1
 Transparency – how much is what costing us?
2
Agility – how quickly are we able to react to changes?
3
Accountability – is our IT department a partner to other departments?
4
Simplification
5
Discipline
 

Ways to achieve it:

1
We reduce unit costs in our business using IT (automatisation)
2
We identify the possibilities how to save in IT (outsourcing, cloud, ...)
3
We rationalise application portfolio – it seems that the costs to maintain applications are the highest**
4
We use IT to look for new areas of business (digitalisation)
 

Optimization phases:

Source: Gartner *

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* This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from this link

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

** Eg. use certified SAM software (Microsoft, Oracle, Sap, ...)

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