T Efficiency: Cutting Costs to Fund Innovation
Despite the rosy goals to become digitally innovative and nimble enterprises, most IT budgets have barely grown, or are staying the same. It seems that only the usual suspects, the traditional market leaders, seem to have the allocations to fund their innovation.
But most enterprises have allocated between 80 – 85% of their budgets just to keep the lights on. How can a company innovate with numbers like these?
Time to cut the cost of keeping the lights on.
The bulk of the cost of maintaining servers is energy consumption, not the cost of the servers themselves. But the advent of hyperscale technology has enabled low-energy machines to save between 38% and 89% of energy costs.
The topic of virtualization has been beaten to death, but there is still a lot to do in this space.
Consider labor arbitrage, use of public and private clouds, and application outsourcing
To cut costs while managing an ever-changing application portfolio look to third parties that offer ever-evolving SLA agreements
Keeping the lights on shouldn’t consume as much as 85% of your budget. Even if you feel you’re cutting costs, there may be areas you aren’t even aware of where you can still cut costs. Conduct a thorough audit of your current IT environment and identify areas where you can immediately have an impact.