Comments
Cloud Services: 5 Key Questions Before You Buy
Newest First  |  Oldest First  |  Threaded View
mmelvin201
50%
50%
mmelvin201,
User Rank: Strategist
12/18/2013 | 3:10:12 PM
Re: Apples, pineapples what ever the food, keep it simple and know what you are eating
Susan,  I agree, many organization have either suffered from analysis paralysis or fear of change and both can stiffle innovation and the ability to compete. On the resource allocation issue not only is this an important issue for companys to understand in a more accurate way, it also reflects on the overall corporate fiscal responsibility.  Which in this age of corporate compliance, all companies should be reviewing this as it may be systemic to other issues.
Susan Fogarty
50%
50%
Susan Fogarty,
User Rank: Author
12/18/2013 | 10:11:47 AM
Re: Apples, pineapples what ever the food, keep it simple and know what you are eating
Mark, thanks for your thoughts. I agree that bringing in outside help is sometimes the best approach. Technologies like cloud and mobility are drastically changing the ways companies are able to function, and sometimes they need some drastic restructuring in order to take advantage of that. I see a lot of organizations that just stand still and get left behind because they are afraid of change. If a company can't figure out how to allocate resources or bill for those resources, then maybe it should think about the way it is operating.
mmelvin201
50%
50%
mmelvin201,
User Rank: Strategist
12/17/2013 | 1:48:37 PM
Apples, pineapples what ever the food, keep it simple and know what you are eating
Great points from both of you, there are a number of good tools for tracking these cost, some of the tool sets that you may be using today have add-on's to help. But even with these tools many organizations simply have no visibility to some of the expenses, they are not considered IT expenses. Power, cooling and facilities are 3 of the biggest expenses that are overlooked.  Laurianne you asked for a follow-up article, which I will try to write.  The challenge here is that almost every organization is strating from a different point. The one that gets many organizations is that they think that they have all of the costs, and they do, but they are missing the facilities costs.  In their organization this is not broken down anywhere, becasue they own the building and it is 50 years old. So this can be a positive or a negative impact on your analysis.  If the facility is not properly engineered then you may have a very inefficient data center design and this may be costing you money that you are not considering. This is why many of our clients ask us as a third part to help them with these evaluations, it brings a fresh perspective and unbiased view of the environment.  Some of this can not be done with tools either.

Look forward to other readers thoughts.
cbabcock
50%
50%
cbabcock,
User Rank: Author
12/17/2013 | 1:30:33 PM
Apple to apples? How about apples to pineapples?
That's a good point, Laurie. Moving to the cloud would be a lot easier if IT shops knew exactly what each system costs them to operate, but an apples to apples comparison is actually quite hard to do. Companies like Apptio will provide software to help you do it. If every IT shop were carefully logging its actual costs, Apptio would probably be as big as Oracle, but that's not the case. Systems have many dependencies. IT knows approximate costs but the actual expense, say, of a database system would need to be spread in proportion over all the apps that use it.
Laurianne
50%
50%
Laurianne,
User Rank: Author
12/17/2013 | 10:34:08 AM
Food For Thought
Good points to think on Mark. That apples-to-apples cost comparison, however, presents the hardest to-do item for many IT groups today. I would welcome a follow-up column from you exploring your advice on that topic in detail.

What do you think readers, which of these points are you struggling with?


The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.