Consolidate Service Management to Drive IT Cost Optimization

Embrace a big picture approach to move beyond cost reduction.

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Your Challenge

  • The Great Recession put IT leaders in a mode of frenzied cost cutting. As the recovery dragged along, IT budgets flattened and have recently increased only slowly.
  • IT leaders need to optimize costs and maintain competitiveness while preserving the organization’s ability to capitalize on a potential market upswing.
  • Having exhausted many of the conventional cost reduction tactics over the past several years, IT leaders have few options left for continued cost improvement.

Our Advice

Critical Insight

  • User classification opens the door to service tiering through identification of the real opportunities for service differentiation in the organization. It establishes a reasonable basis for multiple service tiers that goes beyond simply providing better service to the most vocal users.
  • Spikes in demand for different IT services do not normally occur at the same time. Share resources across services to reduce the capacity you need to allocate up-front.
  • Opening up resource purchase decisions to competitive bidding will not always bring you the strongest vendor options. Try to build multi-service vendor relationships with vendors who can cater to your user classes.

Impact and Result

  • Reduce costs while maintaining the ability to compete.
  • Plan to optimize not just your current level of expenditure but also expenditures foreseeable down the road.

Consolidate Service Management to Drive IT Cost Optimization

1

Build a strategy for optimizing IT costs

Reduce expenses while aligning services to user needs.

2

Learn about cost optimization

Build a plan for cost optimization.

3

Survey your user base for usage characteristics

Drive user classification.

4

Classify your user base

Derive appropriate tiers for user services.

5

Plan capacity across user classes and services

Reduce the amount of resource you purchase.

6

Identify opportunities for multi-vendor relationships

Build relationships with vendors that can support your user classes.

7

Prioritize your cost optimization efforts

Start with the low-hanging cost optimization fruit.