{"id":3685,"date":"2013-04-15T07:00:08","date_gmt":"2013-04-15T15:00:08","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=3685"},"modified":"2013-04-15T07:00:08","modified_gmt":"2013-04-15T15:00:08","slug":"infrastructure-and-operations-pressured-by-fewer-dollars-and-rapidly-changing-business-process-requirements","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/infrastructure-and-operations-pressured-by-fewer-dollars-and-rapidly-changing-business-process-requirements\/","title":{"rendered":"Infrastructure and Operations: Pressured by Fewer Dollars and Rapidly Changing Business Process Requirements"},"content":{"rendered":"<p>Business IT Infrastructure and Operations are being pressured by two, often competing, forces:<\/p>\n<ol>\n<li>Business groups pushing IT to help drive and support <em>changing business processes<\/em><\/li>\n<li><em>Shrinking Budgets <\/em>have IT organizations looking at ways to save I&amp;O dollars<\/li>\n<\/ol>\n<p><strong>Keeping Pace with Change. <\/strong> <a title=\"Gartner:  Change at the pace of Business\" href=\"http:\/\/www.gartner.com\/DisplayDocument?ref=clientFriendlyUrl&amp;id=2361515\" target=\"_blank\">Gartner is warning<\/a> that over the next two years that only 10 percent of I&amp;O organizations will be capable of keeping up with the speed of change that new business processes require.<\/p>\n<div id=\"_mcePaste\"><a title=\"George Spafford bio\" href=\"http:\/\/www.linkedin.com\/in\/gspafford\" target=\"_blank\">George Spafford<\/a>, research director at Gartner, <a title=\"Garner on I&amp;O business change management\" href=\"http:\/\/www.4-traders.com\/GARTNER-INC-12710\/news\/Gartner-Inc-Only-10-Percent-of-I-0-Departments-Will-Be-Able-to-Deliver-The-Speed-of-Change-Require-16587570\/\" target=\"_blank\">said <\/a>that &#8220;Over the years, I&amp;O has become risk-averse, and with the introduction of new and changed IT services viewed as critical, the risk aversion of I&amp;O has become problematic. \u00a0At the same time, business and IT leadership continue to pressure I&amp;O to ensure high availability and integrity, which lead I&amp;O to implement controls that take additional time to ensure production is protected. These opposed pressures are creating an organizational schizophrenia wherein parts of IT, notably development, want to go faster than I&amp;O can support.&#8221; \u00a0Spafford advised companies to work on their change management processes as a means for improving their responsiveness to changes in the business.<\/div>\n<p><strong>Shrinking Budgets.<\/strong> It is no wonder that I&amp;O is often the target of cost reduction efforts. \u00a0Gartner estimates that as much as 60 percent of IT budgets goes toward infrastructure and operations (I&amp;O).<\/p>\n<p><a title=\"Michele Caminos bio\" href=\"http:\/\/www.linkedin.com\/pub\/michele-caminos\/0\/343\/84\" target=\"_blank\">Michele Caminos<\/a>,\u00a0Gartner managing vice-president, shared the following tips for achieving <a title=\"Gartner suggestions for I&amp;O savings\" href=\"http:\/\/www.computerworld.com.au\/article\/417420\/gartner_shares_nine_it_infrastructure_cost_saving_tips\/\" target=\"_blank\">I&amp;O savings<\/a>:<\/p>\n<ul>\n<li><strong>Examine Networking Costs<\/strong> &#8211; 18 percent of IT budget goes towards networking, and 45 percent of that is spent on telecom services. \u00a0Targeting telecom costs is a good way to reduce expenses.<\/li>\n<li><strong>Server Consolidation<\/strong> &#8211; By consolidating servers and increasing utilization rates, businesses see on average reductions in 15 to 20 percent on server spending and maintenance.<\/li>\n<li><strong>Virtualization <\/strong>&#8211; Gartner found that while businesses have strongly adopted virtualization that virtual machines still only run at 25 percent utilization. \u00a0Improving on that can lead to cost savings.<\/li>\n<li><strong>Streamline IT Operations<\/strong> &#8211; Process automation can improve efficiencies, reduce errors, and save money<\/li>\n<li><strong>Reduce Power and Cooling<\/strong> &#8211; Modular data center design, increased rack density and energy monitoring tools can help cut costs in this 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