Showing posts with label green IT. Show all posts
Showing posts with label green IT. Show all posts

Wednesday, May 25, 2011

Cost versus value – who wins?

By Laura Knox, inside sales team leader, DataSource Mobility

In today’s ever challenging economy it’s no surprise that we see technology customers focusing more and more on cost ... and while I am all about getting a bargain and finding the right solution at the right price for my clients, I often find myself explaining that cost does not always equal value.

Much more goes into the concept of value than the upfront purchase price of any solution. You have to think about potential downtime if the equipment breaks, repair costs, replacement if your workers refuse to use the machine because of poor performance, replacement cost if a device fails, upgraded warranty fees (most low cost solutions come with little or no warranty coverage) and the time any IT staff must spend to keep the devices working properly. So, if we are looking at overall value rather than upfront value the emphasis moves from simply finding something cheap to finding something that is high quality.

Now, most people with a healthy knowledge of IT matters already understand that inferior parts and inferior quality plus lack of service are what equal the attractively low price point of generic industry devices – and they are very anxious not to get stuck trying to support devices that will need constant attention and repair - but try explaining this to a person without IT experience who is tasked with finding a top quality solution at a “bargain bin” price and things get tricky.

So, for those of us who are not IT aficionados but need to make smart decisions for the companies we own or are employed by, the question becomes; how do I tell a high quality device from all the other options? Below is a list of questions that I strongly encourage these folks to ask before purchasing any equipment from a potential vendor.

$ vs. ROI vs. TCO

1) What is it made out of?

2) What type of service and support is included in the cost being quoted (and what will you have to pay extra for)?

3) What is the typical lifespan of the device?

4) Are parts and labor outsourced or does the manufacturer actually make the product?

5) Has it passed any level of rugged certification?

6) What is the typical failure rate for the device?

What do you think?

Wednesday, December 8, 2010

Cloud computing's "green" credentials

By R. Edwin Pearce

The market for cloud computing has expanded quickly over the past few years, largely driven by its ability to deliver impressive economic benefits to cash-strapped organizations. But a new study finds that not only can cloud computing keep operations in the black, it also can help them be "green."

Pike Research reports that the growth of cloud computing will have important implications for both energy consumption and greenhouse gas (GHG) emissions. In fact, by 2020, cloud computing will lead to a 38 percent reduction in worldwide data center energy expenditures, compared to a business-as-usual scenario, Pike Research reports.

“The growth of cloud computing will have a very significant positive effect on data center energy consumption,” says Pike Research Senior Analyst Eric Woods. “Few, if any, clean technologies have the capability to reduce energy expenditures and GHG production with so little business disruption. Software-as-a-service, infrastructure-as-a-service, and platform-as-a-service are all inherently more efficient models than conventional alternatives, and their adoption will be one of the largest contributing factors to the greening of enterprise IT.”

To be sure, cloud computing's "green" credentials and environmental impact aren't the top reasons for organizations to deploy the technology. But they are certainly incremental benefits, particularly for organizations that list environmental sustainability among their strategic objectives.

R. Edwin Pearce is executive vice president of sales and corporate development for eGistics, Inc., a leading provider of hosted document management solutions. Pearce can be reached at 214-256-4607 or via epearce@egisticsinc.com.

Monday, December 6, 2010

With economy improving, IT departments hit the ground running

Posted by Mark Brousseau

High performing information technology (IT) departments at large companies have hit the ground running following the recent economic downturn, recalibrating their efforts to drive more business value from IT, and leaving their less adroit counterparts playing catch-up, according to new research from Accenture.

While many companies slipped into stagnation mode during the downturn, cutting budgets and focusing primarily on maintenance, high-performing organizations viewed IT as a growth engine for their business and the economic conditions as an opportunity to build capability.

Accenture defines high performers in IT as those that achieve excellence in IT execution, IT agility and IT innovation together, balancing the constant and sometimes opposing demands placed on today’s IT function.

High performers in IT not only manage IT like a business, but run IT for the business and with the business. CIOs at these organizations are engaged in their company’s business strategies and are able to truly map out how IT supports those strategies.

“Our survey found that chief information officers (CIOs) of high performance IT organizations are deeply involved in business outcomes and closely attuned to business needs – current and future – across the enterprise,” said Gary Curtis, Accenture’s chief technology strategist. “They are successfully retiring their legacy systems and embracing newer technologies. They are adept at managing the balance between optimizing costs and ensuring that they have the budget, skills, and resources to help fuel business growth.”

The research also found that high performers don’t just do a few things well; they excel across the board when compared to lower performing IT departments. Some examples:

... They have web-enabled 42 percent more of their customer interactions and 93 percent more of their suppliers’ interactions ;

... They are 44 percent more likely to recognize the strategic role IT plays in increasing customer satisfaction;

... They are eight times more likely to measure the benefits realized from IT initiatives;

... They spend 29 percent more annually on developing and implementing new applications rather than on maintaining existing ones; and

... They are twice as likely to view workforce performance as a priority by addressing challenges such as an aging workforce and collaboration, as well as developing technical and soft skills (business knowledge, relationship management)

“High performing IT departments are powerful drivers of value for their organizations – not simply keeping the lights on, but promoting technology initiatives that power innovation and enable the IT organization to function as a business,” said Curtis.

What do you think?

Cloud computing grows up

By R. Edwin Pearce

The next year will be big for cloud computing, with the technology transitioning from “early adopter status” into a mainstream platform for IT. That’s according to IDC, a leading research and advisory firm, which ranked the maturation of cloud computing among its top IT predictions for 2011.

IDC predicts that spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011, up 30 percent from 2010, as organizations move a wider range of business applications into the cloud. Small and medium-sized business cloud use will surge in 2011, with adoption of some cloud resources topping 33 percent among U.S. midsize firms by year’s end.

“[Cloud computing] can no longer be invested in, or managed, as sandbox efforts around the edges of the market. Instead, they are rapidly becoming the market itself and must be addressed accordingly,” warns Frank Gens, senior vice president and chief analyst at Framingham, MA-based IDC.

Gens is exactly right. Organizations of all sizes are taking a hard look at cloud-based solutions as a way to avoid the hefty capital investments and ongoing maintenance and upgrade costs associated with traditional on-premise solutions, and to ensure their IT infrastructure remains up-to-date.

In addition to changing the way organizations access business applications, the growth of cloud computing also will bring mobile banking and payments one step closer to reality, IDC predicts. But this also is true of mobile applications in other industries, most notably healthcare and insurance.

What do you think?

R. Edwin Pearce is executive vice president of sales and corporate development at eGistics, Inc. (www.egisticsinc.com), a leading provider of hosted solutions for payments and document automation. He can be reached at 214-256-4607 or via e-mail at epearce@egisticsinc.com.

Sunday, August 1, 2010

State Government IT: Version 2010

Posted by Mark Brousseau

As with every arm of government in today’s environment, state government chief information officers (CIOs) must do more with less. A search for lower costs will drive the agendas of many state CIOs for the next few years, as they look for ways to enhance IT performance. According to the 2010 State CIO Survey, conducted by Grant Thornton LLP, the National Association of State Chief Information Officers and TechAmerica, two-thirds of state and territorial CIOs face budget decreases in 2011 through 2013. However, some state CIOs see a silver lining — public sector IT departments are increasing the use of shared services, reassessing contracts and leveraging economies of scale when purchasing.

Three out of four CIOs say their offices receive some form of American Recovery and Reinvestment Act of 2009 (ARRA) funding. Eighty percent say other state agencies have also benefitted from ARRA money. Although additional funding undoubtedly helps cash-strapped IT departments, it’s not always easy to determine the impact on performance — one-third of CIOs say they do not formally measure how IT contributes to agency missions and strategies.
At a time when government and citizens are demanding increased transparency, CIOs must find ways to demonstrate the efficiency and value of IT, Grant Thornton concludes.

What do you think?

Monday, March 9, 2009

The Case for Going Green

By Mark Brousseau

Some interesting data points from Information Management magazine on the case for going green:

… Eighty-eight percent of financial services executives told IBT Enterprises that green initiatives are important to their financial institution; 68 percent are converts because of lower operational costs.

… Datamonitor reports that tighter regulatory measures and advances in technology are feeding renewed interest in green IT.

… McKinsey & Company says data center energy use doubled between 2000 and 2006, and by 2012 is expected to double again.

… BPM Forum found that nearly 20 percent of those polled spend more than $1 million per year on IT energy consumption, and 8 percent spend more than $10 million.

What do you think? Post your comments below.