Saturday, May 21, 2011

IT cost cutting 101


It’s a sad commentary on IT spending when panel on how to cut your budget results in a packed room. But folks are looking for cost cutting tips and obviously looking to trim expenses.

Gartner,which advocated that execs prepare to cut their technology, budgets months ago, laid out a bevy of tips to cut costs by area. According to Gartner managers should have a cost cutting team in place, an expense goal and plans that assume a sluggish economy in 2009.

Feeling good yet? Here are the best ideas from five Gartner analysts at the firm’s Emerging Technologies Conference in Las Vegas.Among the more notable ones:

Management and people:
  • Cut people first. Freeze headcount, cut regional support and eliminate bonuses.
  • Accelerate centralized and shared services to cut staff in business units.
  • Bring in a bean counter. As if your CFO wasn’t enough, Gartner says you should “bring a qualified finance person into your IT leadership team.”
  • Control unmanaged costs that can be measured and cut. Think power consumption and printing costs.
Enterprise software:
  • Verify invoices.
  • Kill unused software and the modules that come with them.
  • “Apply more sophisticated negotiations.” I read that to mean that you shouldn’t be Waste Management.
  • Introduce competition for existing products.
Infrastructure:
  • Use telecom expense management services. Gartner reckons you can save 10 percent to 35 percent on your bill.
  • Cut reliability by one location by “one 9.” In other words, not every location needs near 100 percent uptime. Going from 99.99% to 99.9% availability could save you 30 percent of wide area networking (WAN) expenses.
  • Deploy VoIP, which saves 50 percent to 80 percent on maintenance.
Hardware and IT operations:
  • Defer 2008 Windows XP PC replacements to 2009. Microsoft will be pleased with that one.
  • Put off client architecture pilots.
  • Use thin provisioning and date de-duplication to cut storage costs.
  • Consolidate and virtualized servers.
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