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Understand your IT infrastructure cost structure so you can make changes

October 12, 2013

How do CIOs free up more money to invest, innovate and deliver?

In his session at Gartner Symposium ITxpo, IBM Senior VP and Group Executive of IBM Software and Services Steve Mills provided a framework to help CIOs understand the cost structure of their IT infrastructures to begin making the tough decisions. Here’s an overview.

Five "megatrends" are accelerating the New Era of IT:

  • Rapid adoption of cloud computing
  • Business advantages created by data and analytics
  • Increased focus on security
  • Emergence of social and mobile
  • Consolidation and integration of IT infrastructure

IT is undergoing a shift in thinking:

  • from monolithic applications to dynamic services
  • from static infrastructure to cloud services
  • from systems you program to systems that learn
  • from structured data at rest to unstructured data in motion
  • from stable, well-defined workloads to unpredictable workloads
  • standard devices to a variety of them
  • from proprietary standards to open innovation

The Evolution of the Data Center is based on Four Critical Actions and Enabling Capabilities

 

 

 

 

 

 

 

 

 

 

 

IT must Break through Budget and Resource Barriers

 

 

 

 

 

 

 

 

 

 

 

How do you quantify IT Economics?

Four dimensions of TCO:

  • Cost: hardware, software, people, networking, storage & facilities
  • Environments: production/online, batch/failover, development, test, QA, disaster recovery
  • Time: migration time and effort, business organic growth and/or planned changes affect capacity, other periodic changes like hardware refreshes or software remediation
  • Non-functional requirements/ quality: availability, security, reliability & scalability