Infrastructure Management Software Blog

Squeeze IT Management Costs Out with Consolidation, Automation

Network World had an interesting article today called “IT budget '09: Spending down, contingencies at the ready”. It shows some survey results about IT professionals’ spending forecasts. Interestingly, there is some optimism that smart IT spending can drive productivity improvements.


This mirrors the sentiment I hear in most of my conversations with customers. Everyone is looking to cut costs. But, many IT executives are open to making investments in their infrastructure, including management software, as long as they recoup their investment within a reasonable (or some might view as unreasonable) period of time. These days that is often six months. For some who are more patient, they might stretch this period to a year. During other (rosier) times, people might accept a 2-year payback period.


Tool consolidation is often one initiative that results in significant savings in a short time horizon. (Data center consolidation done properly can generate even larger savings, but this is generally a multi-year proposition.) In addition to the savings in software license costs by consolidating management tools, organizations often see reductions in training costs and improvements in efficiency as operators can focus their skills on learning one tool really well instead of gaining a superficial knowledge on a variety of consoles. Using a single vendor for all your IT infrastructure management also saves money on integration, as the individual components, at least in HP’s case, are pre-integrated.


Of course, one of the biggest potential savings in a tool consolidation is in applying automation to perform routine tasks. A global financial company saves over $4 million per year by automating only 22 IT processes, most of which take only five minutes or less to execute. For one database process, the savings is only a minute, but the operation happens 400,000 times per year.


How many routine tasks do your administrators complete each day? How long does each take? What does this cost you? What will you do about it?


For Operations Center, Peter Spielvogel.

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