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For Infrastructure & Operations Professionals

Measuring The Cost Of IT Consolidation

Identifying The Elements That Contribute To Economic Analysis

November 12, 2007

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Authors

  • By Andrew Reichman
  • with Simon Yates,
  • Rachel Batiancila

Why Read This Report

Consolidation can help to optimize cost structure for IT organizations with limited resources. Technology enablers like virtualization and remote computing eliminate requirements for dedicated physical assets for each application and for physical proximity of users to those resources. Although many potential initiatives can have a positive impact on operations, firms are unable to do everything at once. Instead, build business cases that prioritize and select the initiatives that offer the greatest impact with the least risk. Consistent application of cost analysis can enable firms to compare investments across a portfolio of options, communicate the risks and benefits to technologists and business decision-makers, and, ultimately, make good decisions. With the cost and impact of technology investments constantly growing, smart businesses will mandate economic justification for all major investments in order to more closely connect business goals with technology initiatives.

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Table of Contents

  • Economics Should Be The Basis Of IT Decision- Making
  • Four, Or Sometimes Five, Categories Of Technology Costs
  • Typical Technology Infrastructure Consolidation Initiatives
  • With Consolidation, You Have To Give In Order To Get
  • RECOMMENDATIONS

  • Evaluate The Costs And Benefits Of Technology Investments
  • Related Research Documents

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