IT Savings: searching for big cost savings in 2015

Lucy Hattersley

Friday 22 May 2015

In recent years the relentless drive to move everything to the cloud has been an overwhelming focus for ICT managers. Beyond that sea change, what next for the IT culture and costings revolution?

Many companies have already made huge cost savings by moving storage and server capability to the cloud. With cloud computing nailed, businesses are now looking for the next big cost-saving opportunity. What are the big cost-savings trends to keep an eye on in 2015?

Outsourcing is back in a big way, albeit with a modern twist. Many companies are turning to outcome-based pricing as a solution over the quality of outsourced work.

The basic philosophy is to align the interests of the service provider and the customer so that both work towards the same goal, explains Mindtree. In this model, the scope is the business outcome itself. Clearly defined and fixed outcomes which can be measured and delivered for a given project is critical to its success.

Outsourcing is big business. In the US, for example, Forrester Research has predicted that 542,000 IT jobs will move out by 2015 a figure seen by some as being conservative.

Canny ICT managers will proceed cautiously however because opening your network to outsourced partners increases the risk of a difficult situation developing down the line. In 2014, Gartner Research rated all nine countries in the Asia Pacific area as either ‘poor’ or ‘fair’ on the data/IP security and privacy criterion.

Closer to home, there is renewed focus on support costs. A recent study found that in PCs that are older than three years, the cost of maintenance and issue resolution increases such that it is cheaper to purchase a new system. Reducing energy costs also remains a priority. On that front, upgrading computer systems in accordance with a sustainable computing policy can provide swift and sizable cost savings.

Open-source hardware design is another area that should be followed closely. Facebook recently announced that it had saved more than $2 billion in the past three years by adhering to designs from the Open Computer Project (OCP).

The OCP is a community of engineers working to create the most efficient server, storage and data centre hardware designs possible. These designs are shared freely so anybody can use them to improve their systems.

Intel has also got on board and contributed to the OCP. At Intel, we’re committed to the OCP mission and to playing a meaningful role in delivering the data centre of the future, recently declared Raejeanne Skillern, General Manager of Intel’s Cloud Service Provider Organization.

While the benefits that the cloud brings may now have been factored in, there are clearly still further opportunities for effective and collaborative cost-savings.