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IT solutions that could make cash.

Byline: DAVID McPHERSON

IT HAS yet to unshackle itself from its reputation as a cost centre rather than a business enabler, which is further reinforced by the budgetary measures that every department is being forced to consider in the current climate.

It is not just product costs that need to be trimmed; businesses want to use less people to run IT, that uses less space, and consumes less power than last year.

The reality is that to spend less on IT year-on-year, whilst safeguarding even more data, and delivering more services is a tall order unless some fairly creative thinking is applied.

IT infrastructure hardware (servers, storage, networks), continue to deliver more for less in a competitive environment aided by Moores Law, that states that you get twice as much bang for your buck every 18 months.

The big issue here is that this law cannot be applied infinitely, and the rate of improvement at a fixed cost is slowing dramatically as raw materials become scarcer, and the physical costs of shipping hardware becomes more expensive, especially now much of it is fabricated on the other side of the globe.

Software prices don't follow the same rule, and are largely a function of competition, intellectual property and inertia caused by the pain of a wholesale rip and replace strategy.

To drive costs down, organisations need to rethink how they deliver business applications from top to bottom.

For example, to lower the total amount of power consumed, you could replace PCs at their end of life, with a more efficient model, to gain a few percentage points of benefit - or you could replace the over-specified, under-utilised high tech device on every desk with something much simpler, a screen and a network connection, with the processing done elsewhere where economies of scale can be achieved.

As another example, you could keep growing your back-up strategy in line with data growth.

And lastly, you could try to renegotiate all of your user licenses down by a few points on each renewal.

David McPherson is managing director of Newcastle-based IT firm Aegis IT david. mcpherson@aegisit.

co.uk. Tel, 0191 211 1949
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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:Jun 30, 2010
Words:358
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