How to optimize your IT assets without increasing costs

by CXOtoday News Desk    Aug 12, 2013

IT

IT managers have to constantly be aware of technologies that reduce cost of IT. IT asset management(ITAM) is becoming a major concern for most IT managers. Gartner conducted a CIO survey in 2013, which cites “reducing cost of IT” as one of the main aims of a CIO’s. So if disruptive forces such as The Internet of Things, maintenance fees, software audits, cloud computing, mobile and app stores, virtualization, big data are not management proactively, it can lead to an increase in IT costs.

Alexa Bona, vice president and distinguished analyst at Gartner has listed the eight disruptive forces that need to be manged by IT leaders.

The Internet of Things: With the growing popularity of this technology, care should be taken so that licensing models with device-based fees or indirect fees should not lead to an exorbitant cost. Since, IOT is all about connected physical objects to the internet too create operating efficiencies, many of these devices should be connected to traditional software. This may cause the cost to rise up.

Maintenance fees: There are lot of changes in IT maintenance fees. Vendors are becoming more protective of their maintenance fees which account for almost 85 percent of their revenue. IT managers need to be careful about which software purchasing licenses to buy and negotiate price protection. In other words, they need to improve their demand management skills.

Software audits: Nowadays software audits are getting intense. A Gartner study in 2012 indicated that 63 percent of the respondents had been audited at least once in 12 months. IT audits are being demanded by both Tier 2 and Tier 1 vendors, and are getting harder to defend against.

Cloud computing: Cloud computing is the buzz word everywhere and if not careful, can increase a comapny’s costs to a great extent. The global market for public cloud services will reach $131 billion in 2013, according to Gartner. A comparative analysis of traditional models and current cloud based models will reduce the risk of an explosion of costs. And then, there is also the hidden costs associated with cloud, which can be further mitigated by developing secure risk management methods.

Mobile and app stores: IT managers need to well informed about traditional mobile device vendors and new vendors such as Apple and Google who used to be primarily consumer oriented. But with the changes of times, and related costs of employee-owned devices, ITAM professionals should have an understanding of compliance tracking.

Virtualization: Virtualization contract clauses can be a pain for IT managers if they don’t have a firm grasp on it. Desktop virtualization, is often one of the mechanisms used to facilitate bring your own device (BYOD) strategies.

Big data: Most companies are starting to wake up to Big data requirements. With growing databases and more and more information which needs to be stored, IT professionals may need to start sourcing data and defining and negotiating new business service-level metrics for information services in relation to integrity and quality.

BYOD schemes: IT managers need to be careful about potential security leaks and environmental risks associated with BYOD. Additional security needs to be provided for BYOD schemes and cost factor should be taken into consideration.