why it optimization

Why Optimization?

Paper by: iPrimitus Consultancy Services LLP

At most locations per report

2 © 2011 iPrimitus Consultancy Services

3

IT operating expense reduction allows more headroom for Capex

~80%-‐70%

~20% -‐30%

Typical IT Spending ratio

Op-‐ex

Cap-‐ex

Op-ex includes Maintenance, Operations, and Ongoing support of Systems and Equipment. Cost savings from Op-ex can support future Cap-ex investments in value added initiatives.

Change the ratio to your advantage

© 2011 iPrimitus Consultancy Services

Need for IT Rationalization


Organizations often do not know •  Which are the overlapping IT resources with other Business Units •  Which resources have overlaps within each Business Units •  Which resources are rarely used or obsolete •  Which resources are specific to the Business Unit and has no overlap either the

Business or other Business Units

Typical Business Environments at Organizations


Environment, we expect it to be.


•  Global, Standardized IT Processes to align with Business Strategies •  Simplified security requirement •  Simpler integration of new technology •  Centralization of management and maintenance, •  Better utilization of skills across a unified environment and being Consistent •  responsive to various service levels and quality assurance as a result of standardization of processes

•  Enterprise Collaboration •  Is becoming the need of the hour specifically post this economic change that has altered the boundaries of the

world specifically in the scale and complexity of tasks are exceeding the limits of the traditional command-and-control approaches to integration org wide…these are the factors leading to the emergence of a model of enterprise collaboration to achieve the goals of integration for various BU in an organization

•  Enterprise Shared Services •  Hence systematic approach towards Centralized computing Vs Consolidated infrastructure is what that leads to

moving from a dynamic environment to a rationalized environment in an enterprise shared service model

•  Real-time Transactions •  A real-time infrastructure Is more or less based on pay-as-you-kind of services •  An IT infrastructure shared across customers, business units and applications Dynamically driven by business

policies and service-level requirements •  Automatically configured and optimized (“tera-architecture”)

Aligning IT with Business.


Why Optimization is Important.


Capacity Variance.


•  Challenge •  Reducing the cost of managing complex ICT environment and at the same time

increasing their efficiency

“ITIL has now emerged as the de-facto set of best practices for IT operations processes.”

•  Benefit

•  Assess your service management processes vs. industry best practices, and perform a revealing gap analysis

•  Establish formal benchmarks for measuring service risk and process maturity •  Identify potential availability and performance shortfalls in your mission-critical

infrastructure •  Spotlight top-priority areas for improving service effectiveness, delivering greater

business value and cutting costs •  Evaluate your supplier-management practices

Operational efficiency with ITSM processes


why it optimization

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