Professional Documents
Culture Documents
Stewart Buchanan
Spending is not Cost
• Budgeted
Spending
• Costs (TCO)
some unbudgeted
Clo
ud
ERP
• Historical trends…
Value
business
business
IT Procurement
Get
Get the
the best
best pricing
pricing and
and terms
terms for
for your
your IT
IT purchases
purchases
Level 0 1 2 3 4 5
People and Individuals buy Authorized Procurement Multiskilled Stakeholder Sourcing team
Organization to meet need individuals office team virtual team or office
Systems Service
IT Procurement Best Practice: Optimize Your Integrator Provider
Supply Chain as Part of Vendor Consolidation
3. Manage Demand
Reduce consumption-driven spending
• Forecast and plan demand
• Pass on costs transparently
• Renegotiate Service Levels to lower costs
4. Restructure Costs
Make the Most of Existing Assets
• Reduce
- Stop Maintaining Unused Items Used
- Reduce Power Consumption Bought
• Reuse
- Licenses – Software Asset Management Program
- Hardware – Repurpose Underutilized Assets
• Replace
- Modernize IT to make it more Cost Efficient
• Recycle
- Watch out for Disposal Costs
Q&A: When and How to Dispose of IT Assets Before They Become Liabilities
Will Virtualization Save Money?
• Compare the cost of virtual with non-virtual
Toolkit: How to Calculate TCO for Server Virtualization
- Server and Storage Acquisition Costs
- Software Licenses, Support and Maintenance
- Datacenter Space and Power
- Administration Labor Savings
Costs
ings
Sa v
Key Issues
1. Where do IT Finance, Asset Management and
Procurement intersect?
2. How does IT Asset Management help and how
can I make it cash positive?
3. Why can’t I freeze spending to cut cost and why
can’t I plan to spend nothing?
Perpetual Licenses have Limited Lifecycles
• A defined depreciation period
2. Integrate
Or Until:
• Support Ends
5. Migrate
- Or becomes too expensive
• Technically obsolete:
1. Select
- Virtualization
- Cloud / Grid
• Commercially obsolete 4. Renew
- Acquisition/Divestment Update
- Outsourcing 3. Operate
Fixed or Discretionary Costs?
• Asset Commitments
- Depreciation
- Maintenance
- Disposal
ion
Terms and Conditions Known Posit
IT Strategy
Data Quality
Access Controls
Inventory