This document discusses how reducing total cost of ownership (TCO) should be a high priority for businesses. It notes that optimizing costs to do more with less can significantly impact the bottom line, as a 5% reduction in a $100 million IT budget equals $5 million. The document recommends analyzing your current IT landscape and emerging trends to identify areas for optimizing costs and investing capital through pilot projects and implementation programs across the technology stack. Finally, it lists some common strategic choices like sourcing strategy, asset costs, and consolidation that can optimize infrastructure costs and provide benefits such as shared resources, reduced operational complexity, and increased profits.

1. Reduce TCO

2. Description
• If your business goal is increased probilifi then reducing TCO must be a high
priority business case. It’s about ‘Optimizing’ cost, and doing ‘more’ with ‘less’. If
your annual IT budget is USD 100 Million, a 5% TCO reduction can add USD 5
Million straight to your bottom line.
• Two key parameters that influence your business growth are eliminating waste and
re-deploying capital into the right opportunities; this thumb rule holds good for
technology too.

3. • Gartner says (IT Key Metrics Data) up to 60% of IT costs are
dedicated to IT Infrastructure and Operations. The budgets are not
going to increase much. IT Infrastructure leaders are under pressure
to implement cost cutting initiatives faster. However, to identify
waste and eliminate them, and make new investments across the
technology stack is a challenge; add to it, the disruptive nature of
technology due to growth of virtualization, cloud, big data, analytics
and social media, the complexity only gets multiplied.
• So, you need to analyze your current IT landscape, extrapolate it to
the emerging trends, identify areas to optimize cost and inject
capital, develop business case hypotheses, validate them with pilot
projects, and subsequently roll-out implementation programs. This
could range across the depth and breadth of your technology stack
or the people and processes deployed in your IT organization.

4. Few common strategic choices available
to optimize your cost are
• Sourcing Strategy
• Asset Costs
• Remote Infrastructure
• Consolidation
• Tiered Infrastructure
• Green IT
• By optimizing your IT Infrastructure you can reap several benefits such as:
• Shared resources, Faster responses, Easier administration
• Reduced operational cost and complexity
• Reduced energy consumption
• Safe disposal / recycling of IT assets
• And thus, increased profit !

5. Thank you
• Read more : Reduce TCO
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