ROI and TCO—Two Winning Factors For Any Deal!

While today’s IT environment has grown more complex, pressure remains on IT organizations to reduce costs without impacting critical services delivery.

Reducing IT costs does not mean simply purchasing low cost solutions to reduce OpEx or improve total cost of ownership (TCO). Purchasing cheaper solutions to reduce short-term CapEx can produce a negative long-term impact on OpEx. Case in point; a solution that is centralized and managed in a consistent and well-structured manner is less expensive compared to widely distributed solutions.

The largest share of an IT budget is spent on infrastructure costs, most of which goes toward daily operations, migrations, upgrades, and so on. Meanwhile, less than 20 percent of the budget goes into innovation, on average. Thus, it is critical to utilize this remaining average (<20 percent) as best we can and optimize infrastructure use by consolidating assets, improving utilization, and making the business more resilient and agile. Doing so will ultimately achieve results—ROI reduction and better TCO for the IT environment.

In this Knowledge Sharing article, Randeep Singh and Ashwani Kumar Singla present a comprehensive methodology that will help IT organizations reduce TCO and ensure higher ROI by implementing technologies and solutions mentioned in the article. This will help IT organizations quantify the cost drivers of IT infrastructure and analyze how much savings remain hidden in the IT infrastructure.

This article will help IT professionals reduce TCO of their IT solutions using the techniques described for these categories.

• Compute
• Network
• Storage
• Backup
• Virtualization—VMware
• Data center and hosting costs
• Cloud

Read the full article here.