White Paper
Three Immediate Initiatives to Cut IT Costs, and Keep Them Down
Date: 05/01/2009 Length: 7 pages Cost: $99.00

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The challenges of a tight global economy are creating significant pressure on IT budgets. ENTERPRISE MANAGEMENT ASSOCIATES® (EMA™) analysts have found that almost twice as many organizations are facing IT budget cuts in 2009 as in 2008, with a median decrease of 10-25%. Even where budgets are increasing, most are only going up by less than 10%.

An immediate starting point for budget reduction is eliminating the cost and waste hidden in a poorly understood IT environment. This includes 3 key areas:

•    Software Licensing – lack of visibility into software use drives higher license costs, compliance costs, fines, penalties, and personal liability. Better license management can reduce license costs by millions of dollars per year, and eliminate other costs and risks.
•    Consolidation – virtualization consolidates servers by an average of 35%, reducing hardware, software, power, and facilities costs. Data center consolidation can eliminate costs of up to $2,000/ft2.
•    Green IT – Green IT initiatives like consolidation, virtualization, power management, and energy-efficient hardware can reduce energy costs by as much as 60%.

This EMA white paper explains how to start on these areas to both operational and capital cost reduction – software licensing, consolidation, and Green IT – including a case study of a NYSE-listed financial services firm that expects to save several million dollars per year through better sourcing, license harvesting, faster procurement, lower project costs, improved compliance, and eliminating unauthorized software.

Steve Brasen

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