IT cost-cutting gives way to strategic optimization in 2014

As we look ahead to 2013, the big trend will be away from IT cost cutting as organizations look to strategically optimize instead.

Although global IT spending in 2013 is expected to be only slightly greater than for 2012, many organizations are struggling to keep costs in check. The practice of tactical cost-cutting is giving way to strategic optimization. Sanil Solanki, research director at Gartner, says CIOs and business leaders need to get on the same page about long term goals or optimization will never be fully…optimized. He says the five key principles of an optimization strategy are transparency, agility, accountability, simplicity and discipline. Implementing these guiding principles is the only way to become a smart spender.

Where might IT spending continue to rise?

Key risk areas are in asset management.  Alexa Bona, vice president and distinguished analyst at Gartner, says there are eight disruptive forces that could cause explosive cost increases. Examples include maintenance fees, software audits, Big Data, cloud computing, embedded technology, and mobile apps. Procurement and management in an “As a Service” environment may seem like a good way to reduce TCO. But once your organization is hooked on these services, providers have a lot more leverage to start nickel and diming you into the poorhouse. For proactive tips on reducing costs, go here.

When did compliance become passé?

According to experts at the Gartner Security and Risk Management Summit, compliance is no longer a central consideration of a risk management program. Instead, it’s a natural outcome of doing things the right way. John A. Wheeler at Gartner says striving to follow each individual rule makes you focus too much on the trees so that you lose sight of the forest. You can reasonably expect compliance to get more and more complex. Understanding how and why regulations come into being helps you be proactive about architecting your systems and procedures to be naturally compliant in an ever-changing regulatory landscape.  Organizations should focus on control mapping and defensibility that is designed for their specific business and treat compliance as just one of many risks to be addressed.

By 2015, Gartner anticipates that 60 percent of information workers will interact with content applications via their mobile device. Enterprises that want to stay hip and relevant need to do more than just make their business apps work for mobile. They also need to start rethinking their video delivery strategy. You can’t sit everyone down in the same room for a video training session anymore. Instead, you have to let workers decide when, where and how they will consume video resources to help them do their jobs effectively. “Enterprises must plan for adaptive delivery that allows for variable bandwidth as well as allowing for time-shifted consumption, as users that rely on mobile devices will not always have sufficient access to network resources to consume video live.” Third party vendors and the cloud will form the most likely solution for businesses that want to marry BYOD and on-demand video.

Is big data a big disappointment?

Big Data is going to keep getting bigger. In fact, Gartner says 42% of IT leaders have invested in Big Data or plan to in the next year. However, Big Data will also have to grow up. According to research VP Mark Beyer, Big Data is going through the hormonal, pimply, rebellious stage of development where it seems like more trouble than it’s worth. The “Trough of Disillusionment” always follows the initial excitement of discovery. “Implementers and organizations will begin to choose the winning solution architectures and technologies that support them. The definition of hype is over-promising without a basis of market experience and proof. The Trough is what does that. It will then rise along the Slope of Enlightenment while others drop by the way side.”

Is your organization optimizing spending and proactively addressing costs and compliance? Is your enterprise ready to meet the demands of BYOD and Big Data? Let us know your plans for 2013-2014.

Dig Deeper on Java Web services

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.