3. What is the key IT driver today?
Cost Cutting
……above all things
4. Consolidating Infrastructure is Key
• Gartner reports that 69% of IT
cost is from operations and
maintenance of existing systems
• 29% of IT budget is staff costs
alone
• More data centers means
• 50% of data center costs is
derived from software,
networking, server and
storage costs
• 20% of budget is telecom
and network services;
Network HW is 23% of
capital budget
• Power is up to 33% of the
cost of the DC space
5. How?
Reduce the cost of the data center
• Reduce the size and number of data centers and
servers
DC • Migrate to new virtualized HW (possibly including
Consolidation private and public clouds) during the consolidation
activities • Implement strategic DR functionality as a bi-
product of the move
6. What else can be done?
Reduce cost of people
• Implement more efficient IT Service Management
processes
• Outsource commodity activities
7. Sweating the details
• Avoid mistakes that will extend the project time and effort –
sweat the details in application migration planning
• Identify contract date obligations
• Define critical cutover dates by application – change
management
• Manage lead times for hardware, space, network changes
• Develop detailed release plans by application
• Complete configuration management of applications and
documentation
• Perform functional regression testing and performance testing
• Deliver changes to service desk documentation and training
• Execute communication plan
8. Strategy and Resource Conclusions
Much of the IT cost reduction goals will come from infrastructure consolidation
– How do you make this project efficient and effective?
• Ensure completeness – starts with an accurate inventory
• Hardware – physical and virtualized
• Software – completeness and opportunities for consolidation
• Application/infrastructure interdependencies