Recouping costs 60 - 70% of the operating budget of Technology




3 is a malfunction, but there are many opportunities for driving improvement





Enterprises to create and run their organizations over the years, the need to be based on time. The executives were not trying to promote best practices but was just trying to get a job. These eventually became codified and modified over time as a variant to the process is required. While some organizations have to come back and establish best practices in the area of the company, most organizations implement best practices and a number of resources and therefore have significant waste and spent large parts of the IT budget.

Procurement process

There are four areas in the procurement process, which accounts for the majority of the waste is choose products; Financial analysis methods of financing; And the lack of strategic acquisitions.

The selection of products.

In many cases, especially in the area of server product short list failed to include several operating systems due to the entrenched belief that product vendors selected to be a network of chip architecture or specific load. This bias then flows through the remainder of the process which led to the wrong buying.

TCA vs. TCO.

The The total cost of acquisition (TCA) analysis is good for an understanding of the cost of investment, but it did not reveal the total cost of ownership (TCO). Business executives, and it ought to be making purchasing decisions based on this analysis, TCO. For example, a pair costs at least this conclusion alone x86 mainframe production costs of a server versus that led to getting to different servers. This analysis must solve the entire ecosystem - servers, storage, network, cable, people, power, floor space, etc., for the production and box development / test cycle five years (including a refreshed, if appropriate). When ecosystems are analyzed, more often than not that different conclusion are drawn.

Financing.

It is not unusual for a company to go with the method of financing, which is not good for their business. In fact, RFG has found that many companies simply buy the device outright because that's the only thing they know how to do, and it's a very simple method.

Strategic acquisitions.

Companies without a strategic acquisition plan that rarely gets the best deal and.

For example, if someone said the company intends to buy 100 servers over the past two or three years, to negotiate an agreement for the maximum and do not get it again. With the right strategy, it is possible to reduce costs by 40 percent or more.

Asset Management Process

It has the asset management process components that account for the bulk of the waste are: aging, property underutilized; Lack of optimization; And cohesive architecture.

Aging, wealthy underutilized.

Aging underutilized asset value and performance from the perspective of their relatives who are far from reasonable price / performance. For example, four years old can use the most powerful servers while delivering less than five percent of the performance capabilities. Moreover, older x86 become unstable such usage reached more than 40 percent. This underutilization drives up costs.

Lack of optimization.

Most servers are not upgraded because a lot of reasons, most of which was done a few years ago but may not be relevant today. The standard is lacking and the level of virtual falls short. Servers running less than 8 cases per VM effective implementation and costly upgrades.

No cohesive architecture.

Operating systems running on many islands remain today in the calculation. Development teams to upgrade their decision Sub-based programs they are offering, not on the optimization of existing production platform. So while the cloud (cloud and standard) is the buzzword today, the legacy development tended to build solutions that often require new hardware and software is installed on the data center floor. Then enter Jerry was produced - rigged to bring it together. At present, despite the SOA artifacts are still there that look like wild blanket architecture. The high cost to run and maintain.