Imad Sweidan, CIO at Almansoori Specialised Engineering - Cost optimization on software / ERP maintenance
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Imad Sweidan, CIO at Almansoori Specialised Engineering spoke at the CIO Middle East Event April 2013
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Imad Sweidan, CIO at Almansoori Specialised Engineering - Cost optimization on software / ERP maintenance
- 1. IT Cost Optimization (Focusing on ERP)
- 2. Definition of Optimization • Spend less on IT and deliver more value to the business. IT Executives • Spend more on a new products to show IT value to the business. Vendors
- 4. F A C T S BUDGET AND EXPENSE: 20% 80% BUDGET Running Existing IT Solution IT Enhancement
- 5. F A C T S The Biggest Expense of the 80%: 20% 60% Annual Maintenance Contract and Depreciation
- 6. Most Expensive AMC are Software: 100% DP + AMC 80% DP + AMC 60% DP + AMC 40% DP + AMC 0% DP + AMC 1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr. 20-25% CAPX OPEX 60% expense – after depreciation period, the asset value becomes zero. You still continue paying maintenance (20-25%) on original value of the investment.
- 7. Most Expensive Software is ERP:
- 8. BUSINESS VALUE of ERP Maintenance: 1st Year 2nd Year 3rd Year After (3) Years Min. Business V A L U E Environment is stabled. All functions are already available. Most of the time, technical support / resolutions from AMC are not satisfactory. Min.
- 10. SUGGESTION FOR OPTIMIZATION: Start the negotiation early. Consider 3rd party support as an option. Give the vendor customization options. Contact “Forum”
- 11. SUGGESTION FOR OPTIMIZATION: “SaaS” Software as a Service “IaaS” Infrastructure as a Service “PaaS” Platform as a Service Cloud DR “Disaster Recovery”