Cost Optimization in IT spending
When most people think of IT, I think they picture pocket protectors and fluorescent lights. It’s an unfortunate consequence of a profession that was previously relegated to the cold, dark basement. But as IT moves to the cloud, the stereotypical IT managers are venturing out into the ivory tower; and as more roles are driven remote, it will have the ultimate selection of office space as they are the among the only roles that may need to remain on-premises. But IT isn’t just a few comp-sci majors, it’s an entire business unit with many different roles working together to build and manage the foundation of any business large and very small. The goal of the business unit is to drive out legacy and redundancy costs and to provide the tools necessary for cross collaboration thereby improving operational efficiencies paramount to the business.
Driving out cost is at the heart of all transformational business units. Just as our fathers’ companies replaced complex ledgers with Apple 2s and IBMs, we will replace frontline inefficiencies with AI and overspending on real estate will be replaced by cloud computing. To achieve our lofty goals, we need to look at the core responsibility of IT which is IT asset management. IT asset management supplies and maintains the interconnectedness and the tools used by employees at every level of an organization. Regardless of size, all organizations should employ IT asset management.
The 30,000-foot view of IT asset management is the hardware (servers, pcs) and the software (apps, security) on which the organization’s operation is built. Not all the assets are owned by the organization, some are licensed, and some are leased. Not all assets make sense to bring to the cloud. At least not at first. Many companies employ custom built software solutions that use legacy on-premises connections. Rewriting legacy software for cloud usage can be a huge time suck with limited ROI. Knowing what to bring to the cloud and what to leave behind is the ultimate strategic move. Collaborating across business units is vital for unseen reasons as well. It is important to match the culture of the business to the solution. If the business works one way, don’t future proof at the cost of productivity.
It asset management has grown from ordering computers and deploying windows to managing the pulse of the organization. The growth trajectory of IT asset management as a business unit will include injecting IT asset management into every business unit from finance through manufacturing. IT asset management will follow the culture of the organization.
IT asset management is a growing field comprising many specialties not typically associated with it. As the way we work continues to transform digitally, IT asset management will continue to grow as the keystone business unit.
In the past, IT asset management was used retroactively as an audit function annually or during a time of crisis. Business leaders wanted to make sure data was secure and available. As things grew more complex, audits would take too much time to do once a year, and real time reporting became increasingly relevant
Everyday new SaaS apps and tools launch that make various work easier to perform across business units and functions like project management, graphic design, and engineering. A portfolio of it licenses and services grows organically and as it does it becomes increasingly complicated. Maintaining a full view of the IT estate and creating an accurate asset map is vital to the economics of IT. We’ve all been at companies where we were negotiating the license on software only to find out that we already had a license through a different business unit. IT asset managers can help rein in redundant spending and improve accessibility to the estate.
SMBs that do not yet incorporate IT asset management into their operations will benefit from planning of their goals and a success metric. Once the start and end points are developed (goals and success metrics), the in between can be filled in. The resulting process is the strategy for a successful IT asset management structure.
This isn’t 1996; software no longer comes on a cd in the mail. In fact, most software is transforming from installable to a SaaS model. Though they may seem like a collection of login credentials, SaaS and cloud computing assets are huge pieces of managing software estates.
It used to be that cloud software was deemed less safe because it required external access to a pc, but with end to end security and virtual machines, running cloud software is many times safer than native!
A business leader at an SMB might ask themselves if SaaS is safer and more versatile than native software, wouldn’t cloud servers or full cloud computing solutions protect my organization? And yes, the cloud solution will almost always be the most versatile solution. But overall safety is par for the course for most applications. Leaders need to assess and ensure value before moving to the cloud.
Business leaders and new IT asset managements should not be tempted by multiyear cloud/software licensing deals. What’s true about your business today, is not necessarily true tomorrow. 2020 has proven thus far that your growth plans mean nothing in the face of pandemic. In fact, even to expert eyes multi-year deals tend to be misleading.
On way to backstop against misleading multiyear deals is to employ redundant cloud vendors. Pairing Microsoft azure with amazon web services backstops against misleading multiyear deals and backstops against failure should one service go down unexpectedly.
Business units must be transparent about needs and wants in order to make wise economical decisions. Collaboration at the highest (and sometimes the middle) level is paramount to getting things done right the first time. And if not the first time, the second time.
You might wonder which cloud package is right for your business. Often there seems to be a nearly unending amount of available solutions. Vendors make the options complicated on purpose. Finding a consultant or it asset management capable of simplifying the licensing solution is easier than trying to go it alone.
It has moved out of the basement and is collaborating cross functionally with all business units. Moving to the cloud optimizes costs throughout a company and allows for more productivity. If our it asset managements can successfully navigate the intricacies of the other business units, companies will find greater efficiencies and save into the millions.
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