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Cost Reduction Strategies »

Reducing the cost of IT

Very good topic to discuss in this economy. However, its not an easy task to develop a plan to systematically reduce the cost of IT.

I think cost should be linked to the architecture elements. In mapping costs to architectural elements and then aggregating them in various combinations (i.e. business process, capability etc) that are relevant to the business, IT can achieve a clear understanding of the costs. These architecture elements are the components that support a business capability.. you will then know how much is the operating cost to support a capability. Now, business can see the operating costs of a business capability/competency and can reduce the cost by focuing in those areas which need attention, ie, the area where business needs to close the performnace gap.

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Submitted by Unsubscribed User 4 years ago

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Comments (3)

  1. I posted about leveraging student workers to cut IT costs under Workforce Development, but it is also relevant here.

    My background is public education, and I know that when school districts adopt Open Source do not always realize that the labor cost trumps the "free software" appeal - and they don't make use of the throngs of tech savvy teens in their halls who would love an authentic context to help.

    I'll be presenting about this strategy in Chicago at http://k12openminds.org/ in early October (session: http://k12openminds.org/sessions/tech-scouts-student-empowerment-service-learning) and if anyone's interested, I can email them the presentation materials.

    -Bram

    Bram Moreinis, Director

    Hudson Valley Tech Scouts

    http://hvscouts.com

    518-537-3445

    4 years ago
  2. Unsubscribed User

    "the labor cost trumps the "free software" appeal"

    I'm not sure exactly what the first comment is asserting here, but please be aware of the following facts:

    1. Self-interested parties have sponsored and published studies PREDICTING higher costs after migration to open source software. However, those same entities have never been able to point to a study showing ACTUAL increased costs.

    2. Europe has migrated to open source software much earlier than the U.S. For example, in the nation of Italy, more companies use Open Office than the well-known predominant US proprietary product. A European government agency has studied 70 European migrations to open source software and found cost savings IN EVERY CASE, usually dramatic cost savings, even taking into account TCO issues such as training and other migration costs. The studies can be found here: http://www.osor.eu/

    4 years ago
  3. The world wide open source communities in many respects are far more superior many "in house" IT networks.

    Many government agencies are trending toward using CMS solutions such as Joomla, Drupal & Wordpress to lower development cost and increase technical support.

    Our new business website, http://www.legalcreditcardsettlement.com was recently developed using Open Source software (Joomla)and we have seen a 300% decrease in development cost.

    There is no question that open source CMS cuts production spending dramatically. It's just a matter of local government agencies receiving the right guidance and seeing that open source is their best option. Open source is growing day by day - I think it's just a matter of time until it's completely adopted.

    4 years ago