Are We There Yet with IT Cost Optimization?

Unknown-13The evolution of IT gradually shifted focus from the technology itself to the role technology should play as an asset to the organization.  One impetus for the shift has been expressed this way: “The good manager should not think of data processing as a technical sandbox in which to play, but as a resource which enables the company to earn a greater profit.”  This could be a nice guiding principle for IT management.   With such a significant focus on optimizing the infrastructure and associated costs, particularly since the economic challenges of 2007 and after, it is tempting to declare victory, the battle won, the monster excessive cost subdued.  But is IT really there?  Or have we just reached a new inflection point, which requires innovative approaches to advance the reduction of IT costs while delivering expected performance?

There are several ways to remove cost from the services IT delivers.  But in many efforts, IT falls victim to the cobbler’s children syndrome.  IT works to optimize the more visible aspects of delivering applications and business services, but may overlook the opportunity for optimizing infrastructure and cost within the IT wheelhouse.  Optimization of IT Operations Management (ITOM) tools, processes and people can enable IT to reach the next level of optimization they are expected to achieve.

Organizations who are building optimized infrastructures report cost savings that total in the millions of dollars across the entire range of
ITOM disciplines: infrastructure monitoring and automation, workload automation, service management/service desk, data base management, provisioning, cloud management, and application performance management to name a few.  They are achieving the savings by looking for innovations in ITOM solutions that increase their efficiency, in some case partnering with ITOM vendors to provide guidance on next-generation ITOM solutions.  These organizations have realized that optimized infrastructure and cost is an imperative for the digital business of today – and may well determine who will be around tomorrow.

To the opening question –are we there yet?  The quote above is from an article by Dr. Richard Nolan, IT management guru, originally published in the Harvard Business review.  The date – July, 1976.  That would suggest that, no, we’re not there yet.  But the goal of an optimized IT, built on ITOM solutions that deliver adaptive automation, actionable intelligence, agile applications, risk mitigation, optimized infrastructure and cost, and a new level of intuitive experience, is real, and is being achieved today.

Check here for ideas on how to optimize the cost of IBM mainframes.

These postings are my own and do not necessarily represent BMC's position, strategies, or opinion.

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Jay Lipovich

Jay Lipovich

G. Jay Lipovich is a Principal Product Manager for mainframe systems management and cost optimization at BMC Software. He has many years’ experience in the design and development of strategies and solutions for infrastructure and data management. This includes design strategy and performance evaluation for a mainframe hardware vendor; infrastructure performance consulting for industry and US government agencies; and design and development of strategies and solutions for infrastructure management solutions. He has published numerous articles in trade journals defining approaches to infrastructure performance management and cost optimization. Mr. Lipovich is ITIL Foundation and CDE certified.