IT budgets are not increasing. As a matter of fact, Gartner indicates that the global IT budget is shrinking. Since the demand for IT only grows, IT professionals are left with the difficult task of doing more with less. Cutting costs is inevitable and has to be done intelligently. Here are 5 suggestions for surviving in the process:
1. Cut Operational Costs
- Flatten your organization. A flat structure can encourage better productivity, accountability, and more work gets accomplished.
- Take away the human element – automate processes. Examples vary across the organizations and include automating of accounting processes, automating of testing or automating of the entire data center. A recent customer told me his CTO directions were that solutions that cannot be automated are not allowed in-house.
2. Buy Less Enterprise Software
- Get rid of any software that is not directly impacting your business. Do you really need all those monitoring tools? Is anyone looking at those alerts? Is anyone even reading those TPS reports?
- Choose free alternatives – Do you really need Microsoft Office anymore
- Limit the licensing costs by buying the minimum needed. Careful, One of the challenges is that some vendors supports only hardware partitioning, not software partitioning like you get with VMWare. As a result, you must license all processors and cores accessible to the product. Get your free Licensing Gut Check here.
3. Choose Cheaper Solutions
- Move to Open Source. Apple dumped VMWare licensing agreement moving forward with open stack KVM saving about $20,000,000. There is a lot of buzz around containers replacing Virtual Machines all together. Docker is now valued at $1B leading that charge (They chose an interesting way of cutting cost designing their logo!)
- Shop around. You can save by moving to less expensive solutions. Nutanix claims to cut up to 60% costs of infrastructure by leveraging their local storage solution.
4. Intelligently Burst to the Cloud
- Pay for what you use. By moving some workloads to the cloud you can reduce capital costs, paying only for the resources you need, when you need them—the question is: which workloads when?
- By nature, a cloud has a broad and large mix of workload characteristics. This enables the cloud provider to drive the environment to high levels of hardware utilization across the board. Higher than what you might experience in smaller environments. Of course the cloud provider profits from this practice. However, some of the benefits are reflected in the overall low costs of cloud hosting.
- VMTurbo can assist with all of the above: