Meeting CIOs Top IT Priorities

With an increasingly competitive ecosystem, IT must improve if it is to remain relevant. Improve ITs on-time and on-budget performance was the #1 IT management priority (...) and IT needs to improve its delivery capability and alignment with business processes.
Forrester Research Inc.1

2013 IT Budget Planning Guide For CIOs, Forrester Research, Inc., December 21, 2012

Reducing IT running costs

Running IT efficiently is being sought by business leaders who are demanding that CIOs must reduce costs
Businesses are demanding that IT is run more efficiently. We at 1E have believed this for years and all our solutions are focused around this one key mission. The great thing today is that top analysts research shows that CIOs have got the message. Forrester Research Inc.s Forrsights Budgets and Priorities Tracker Survey, 2013 IT Budget Planning Guide for CIOs, states that IT departments in organizations are spending too much on just maintaining the status quo. The report recommends that CIOs should look to improve the effectiveness and efficiency of IT to generate cost reductions and improve competitive advantage. To optimize spend and improve efficiency, Forrester recommends that CIOs should start by looking at the IT MOOSE budget, (Maintenance, On-Going Operations, Systems and Equipment the expense needed to keep an IT organization running). In the last quarter of 2012 Budgets and Priorities Tracker survey, Forrester found that IT decision makers were allocating nearly half of their IT budget to ongoing operations and maintenance and nearly a quarter on expanding current capacity amounting to a total of 71.4% being spent to support business growth which leaves less than thirty percent for new IT initiatives and projects. By actively reducing the cost of supporting past IT expenditure, businesses can free up budget and resources to reinvest in innovation. Many of the 3,500 senior IT executives and technology decision makers around the world who were surveyed also agreed with the reports findings. Why hasnt there been massive interest in tackling these challenges to date? CIOs have long been tasked with doing more with less without sacrificing quality, security or business goals. Typical IT cost cutting measures focus on the obvious such as outsourcing, service and hardware consolidation, tougher contract negotiations, higher demands on employees, greater purchasing controls, and more. CIOs are well aware that a proportion of every IT budget is wasted on technology that is not used or required, and/ or delivers no value to the organization but they dont always know how to change the status quo without risk. Many corporations still fail to consider IT cost reduction as a full-time initiative and in addition, they have found that this approach has led to decreases in productivity with less resources and money available to focus on new projects and initiatives, not more.

Sumir Karayi CEO

IT budget benchmarks enable organizations to gauge their IT spending relative to their industry peers.
FORRESTER RESEARCH INC.*
Looking at automation to eliminate waste, rather than cost reduction in the traditional way of postponing or cancelling other projects, can have a transformational effect on the proportion of a budget available for growth initiatives while simultaneously enabling enhanced IT MOOSE delivery. Thats where we come in. At 1E, we believe that efficiency is the next strategic focus that the business will force on to IT. This new discipline will bring the concept of 100 percent automation, getting rid of every mundane and unnecessary laborintensive steps in high cost processes. Using best practice benchmarks across key areas of IT MOOSE such as hardware, software, effort and energy 1E, through its ActiveEfficiency platform, enables organizations to transform IT waste into free resources and money to invest in innovation and create competitive advantage, key indices for success.

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*Forrester Research Inc.Forrsights Budgets and Priorities Tracker Survey, by Craig SymonS 2013 IT Budget Planning Guide for CIOs,

Meeting CIOs Top IT Priorities

Where can cost reduction happen?

French multinational corporation SaintGobain cut the cost of rolling out its systems management platform by 97% with 1E Nomad
In the last quarter of 2012 Budgets and Priorities Tracker survey, Forrester found, the proportion of the budget set aside for IT MOOSE is 71.4%. Forrester recommends that companies seek to focus on this budget as it is consistent year on year, being unaffected by new projects; it is also consistent between companies within an industry and that less IT MOOSE is generally more desirable - CIOs can concentrate on the portion of the IT budget they want to reduce ie. ongoing operations and maintenance rather than affect new initiatives and projects.

In 2013, approximately what percentange of your budget will to go to the following?

100.0 90.0 80.0 70.0 2013 replacement/expansion of capacity to support business growth 2013 ongoing operations and maintenance 2013 new IT initiatives and projects

Mean

60.0 50.0 40.0 30.0 20.0 10.0 0.0

Enterprise (1,000 or more employees)

Base = 2037 IT Decision Makers from Enterprise Firms Source = Forrsights Budgets And Priorities Tracker Survey, Q4 2012

CASE STUDY
Saint-Gobain needed an efficient way to deploy software patches and upgrades to 100,000 desktops across 6000 branch offices. The company was implementing the Microsoft Systems Management Platform to create better collaboration and improve productivity. By implementing 1E Nomad it eliminated the need for branch servers (due to peer-to-peer distribution) or desk-side visits (through completely automating the patch and upgrade tasks) which further reduced the existing server footprint and administrative overheads. Now the company has thirty times fewer servers than was projected at the start of its consolidation project.

Meeting CIOs Top IT Priorities

Getting the priorities right

UNUMs IT Efficiency initiatives bring early cost reductions with continuous automated processes thanks to 1Es desktop total automation suite
Looking forwards, CIOs from both sides of the Atlantic have similar priorities when it comes to new IT initiatives that they want to invest in over the next 12 month period. Lowering operational costs to free up money and improve ITs on-time and on budget performance are certainly attainable if, instead of looking at quick wins, CIOs focus less on tactical campaigns and employ disciplines and IT management strategies that will continuously optimize their IT investments. For example, run as a continuous process, Software License Optimization will not only right-size the number of licenses within a business but, by initiating regular reclaims, it enables applications to be reassigned and eliminates the need to buy more licenses unnecessarily. Similarly, having a future-proofed automated desktop suite in place for OS and System Center upgrades, accelerates software distribution and ensures long-term simplified and efficient systems administration.

Which of the following IT management initiatives is your IT organization prioritizing over the next 12 months?
NORTH AMERICA (N=715) EUROPE (N=357)

Lower ITs operational costs to free up money for new initiative

70%

Improve ITs on-time and on-budget performance

69%

Increase IT capacity to drive business innovations

68%

Lower ITs operational costs to free up money for new initiative

68%

Increase IT on-time and on-budget performance

64%

Improve business processes

66%

Increase the scope of ITs centralized or shared services to improve efciency

61%

Increase the scope of ITs centralized or shared services to improve efciency

62%

Improve business processes

60%

Increase IT capacity/resources to drive business innovations

55%

Base = 1072NA & EU IT Executives and Technology decision-makers from enterprise rms Source = Forrsights Budgets And Priorities Tracker Survey, Q4 2012

CASE STUDY
As one of the worlds largest employee benefits companies, employing 10,000 people, Unum has a multitude of desktop applications it needs to manage. Users can find and download applications themselves from Shopping, reducing helpdesk calls. AppClarity gives the company visibility of all software licenses and the ability to automatically reclaim unused and rogue applications - in less than two months it identified $326,478 of cost savings.

Meeting CIOs Top IT Priorities

Traditional SAM is failing enterprises (...) whereas Software License Optimization is enhancing compliance while reducing wasteful spend on superfluous license capacity

Introducing Software License Optimization , Forrester Research Inc. September 29, 2011

Software license optimization rapidly reduces costs

Using 1E AppClarity Sasol reclaims unused applications to become compliant and save money
As 16% of an organizations IT budget is spent on software, identifying the usage of software licenses is critical not only for vendor compliance but also to allow organizations to reduce spending on unnecessary and unused software licenses. Software licensing represents a major cost, administrative burden and is a hidden license liability for organizations often, it consumes far more of the IT budget than necessary. Research* has found that there is more than $400 per PC of unnecessary software that could be reclaimed. Using the right tools, in conjunction with that understanding of entitlement and usage rights to analyze all types of software deployments and determine usage enables administrators to get an instant picture of the financial impact of unused software and unlicensed applications. This in turn gives them the ability to reclaim what is unused to prepare for true-ups and vendor audits and remove the risk of being fined.
* Software Efficiency Report 2011, Opinion Matters, IAITAM, APRIL 2011

In 2013, what percentage of your budget will go to each of the following categories?
100.0 90.0 80.0 70.0 Other As a service offerings, including software-asa-service, infrastructure-as-a-service, platform-as-a-service Third-party IT serivces Telecommunications services Hardware infrastructure Software costs Contractors Full-time IT staff

Mean

60.0 50.0 40.0 30.0 20.0 10.0 0.0

Enterprise (1,000 or more employees)

CASE STUDY
Sasol wanted to optimize how software licenses were used and managed and get true visibility into applications usage to make tangible savings and reduce license liability. The company had thousands of different applications deployed and wanted to ensure that its license liability was at zero. Within a month the company saw savings of South African Rand (ZAR) 1.8 million ($260,000) which accounts for 3,000 reclaimed licenses. This represents a potential overall saving of ZAR 82m ($9.4 million) if everything that is unused is reclaimed.

Meeting CIOs Top IT Priorities

ABOUT 1E 1E is the pioneer and global leader in ActiveEfficiency solutions. 1Es mission is to identify unused IT, help remove it and optimize everything else. 1E ActiveEfficiency solutions help reduce servers, network bandwidth constraints, software licenses and energy consumption.
Our headquarters are in London and New York and we have offices in Paris and New Delhi. With more than 20 million licenses deployed worldwide, 1,600 organizations in 42 countries trust us to help them to work efficiently, productively and sustainably. To date, our customers make $1.4 billion in efficiency savings. This includes $800m in energy costs alone and a reduction in CO2 emissions of 6.4 million tonnes. Our customers are drawn from public and private sectors across the world and include AT&T, Verizon Wireless, Dell, ING, Nestl, BNP Paribas, Ford Motor Company, the US Department of Veterans Affairs and the UK Department of Work and Pensions. Our largest customers have more than 300,000 seats, our smallest just 500.

GET IN TOUCH WITH US

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Tel: 1 866 592 4214

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Tel: +33 1 56 60 52 35

Web

www.1e.com

United Kingdom
Tel: +44 20 8326 3880

India
Tel: +91 120 402 4000

Email

info@1e.com