Friday, October 17, 2008

Gartner's 20 ways of cutting expenses in IT

Gartner analysts presented a list of 20 ways that IT execs can slash expenses.

  1. Gartner estimates that 37% of the average IT budget is dedicated to personnel, so this represents a major opportunity to save money. Gartner recommends a blend of hiring freezes, reducing or eliminating special bonuses, cutting back on outside contractors.
  2. Flatten the organization. A flat organization not only saves money but also can lead to more efficiency.
  3. Move to shared services. Consolidate things like help desk into one group that services the entire company.
  4. Bring a finance person into your leadership team for that person to analyze your budget and find ways to help you trim costs.
  5. Don't ignore "unmanaged" costs like printers or data center power. Specially DC Power.
  6. Make sure your vendors are charging you what your contract specifies.
  7. Eliminate unused software and modules.
  8. Think about renegotiating contracts and strategize ways to save money with vendors.
  9. Deploy a telecom expense-management service. It pays for itself and more.
  10. Deploy a corporatewide plan for buying cell phones. Then, buy a cell phone plan that optimizes expenses.
  11. If there are places where you don't need five nines of availability, settle for three nines.
  12. Consider buying a videoconferencing solution rather than constantly renting or outsourcing videoconferences.
  13. Where possible, use the Internet as a replacement for expensive WAN transport services. Leverage VPN Technologies.
  14. If your hardware is holding up, consider sticking with it another year.
  15. Use commodity products wherever possible.
  16. Consolidate and virtualize servers and infrastructure.
  17. Reduce storage costs via data deduplication and other methods.
  18. Use better processes and policy to make better use of existing tools.
  19. Deploy IP telephony and VoIP as a way of cutting costs.
  20. Harvest unused licenses and reuse them when a new employee makes a request.

(from's article)

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