How to Reduce Your Organizations IT Costs by Up to 60%

Economic slowdown continues to haunt organizations,IT business needs.
especially emerging ones. Businesses therefore, haveFor businesses, maintaining highly-skilled personnel is
no choice but to use the existing IT assetsan expensive affair. Employee retention, training
effectively. In spite of the shrinking budgets, ITcosts, perks, and other benefits cost a lot to
wings of organizations are expected to deliverorganizations. By reducing manual dependence, (i.e.,
accelerated business value, which is indispensable forshifting base to automation) organizations can
growth. CIO's all over the world are reeling forrationalize skilled staff in an efficient manner without
process support and innovation, without disruptingcompromising their business capabilities.
application stability and business continuity. StrategicIn the already complex business landscape, working
Investment, also, need not be undermined. The ITwith multiple vendors is a headache. Increased license
landscape poses the dual challenge of cost andcosts, increased efforts in integration, and reduced
efficiency. The question is- how to reduce IT-relatednegotiating capabilities are some of the consequences
costs while increasing productivity? A cohesiveof maintaining multiple vendors. However, these costs
modernization strategy can bring down IT costs, andcan be eliminated to a great extent by consolidating
thus aid IT companies to survive, and flourish inautomation tools.
today's difficult economic climate.Outages cost businesses millions of dollars every
Operational Expenditures (operations andhour. Downtimes, application outages, and other
maintenance) account for over 80% of the ITsimilar issues lead to wastage of resources. Again,
budget. Staffing, for example, is the largest singleautomation (like load balancing and automated error
operating cost in managing IT systems. Interestingly,detection) can arrest the frequency of outages.
much of the IT costs are hidden- unseen to theIT, without doubt, must help reduce costs while
normal business eye. Innovation asks for a largeimproving productivity. However, the main aim of IT
budget. With mammoth IT costs, there is no pennyshould be to enhance business value. Businesses must
left for innovation. Remember, innovation is the keyrealize that IT is not just an organizational arm, but a
to adding business value.strategic business asset. IT automation is also
A number of organizational and economic factorsimportant for improving SLA achievement.
determine IT management needs. AutomatedOrganizations, by focusing on value-add initiatives,
management software tools, in addition to advancedreducing unplanned downtime, shifting focus to
next-generation technologies, can help increaseautomation, and consolidating vendors can strengthen
productivity through maximum server utilization.their IT arm, and reduce IT costs by up to 60%.
Reducing application support efforts is the mostThis paper shows technical decision makers and IT
important method of saving those big bucks. A vastmanagers how organizations can reduce costs and
pool of IT staff is deployed to manage compleximprove their IT effciency by optimizing their core
applications like Oracle and SAP. Automation of suchinfrastructure and adopting server-related best
applications can however minimize revenue losses,practices. This paper identifes which best practices
reduce IT staffing costs, and enhance ITare most effective in driving IT effciency to reduce
productivity.operating costs and free up human and fnancial IT
Manual Integration is sheer wastage of money andresources to add more value to the business.
resources. For example, it is a time consuming taskMicrosoft solutions can help data center
to copy data between applications.administrators improve the effciency of their
Machine-to-machine interactions can be automated toorganization's core infrastructure, so more human and
reduce errors and provide faster reaction times forfnancial resources will be available for IT innovation.