IT Cost Reduction Strategy with ITAM 2.0
Covid-19's unprecedented global economic impact has forced CIOs to find innovative ways to manage and control costs, all while supporting organizational goals for digital transformation. Walking this tightrope requires striking a balance between short-term IT cost cutting and long-term IT cost optimization.
A recent Gartner report examined the dilemma that infrastructure and operations leaders face, and cautioned organizations to avoid "knee-jerk" reactions by making short-sighted cost-cutting. Reactive measures such as implementing a hiring freeze or cutting training programs may save money now but may have detrimental impacts on the organization over time, putting them at a disadvantage for sustained resilience.
CIOs Must Balance Cost and Agility
Organizations that continue to invest strategically in IT during tough times and forge a strong CIO and CEO relationship, are more likely to come out on top. Often, the potential benefit of long-term cost optimization justifies additional short-term investments in IT. Still, in communicating their cost optimization strategy effectively to C-suite executives, CIOs must demonstrate that a proactive approach won't jeopardize business continuity or innovation.
However, as the number of IT assets continues to explode, CIOs will need to find a balance between containing costs and providing the business with enough agility to innovate and compete. While agility will be mission-critical, it will lead to chaos if IT loses sight of the assets they have and the assets they're adding. Maintaining an overview of your IT Estate during a fast-tracked digital transformation process is key to optimize costs. This is where ITAM comes in.
All Assets, Any Use Case
The ITAM Forum suggests the cost-cutting benefits of ITAM must become a de facto business practice and discipline, and can be leveraged in recession planning to help save jobs and maintain growth, reducing global IT spend with 5%, which equates to over $67.7 billion of potential savings from ITAM alone. A focus on minimizing asset-related investments and optimizing cloud spend can help alleviate immediate financial pressures. As a practical example, ensuring billed resources such as software licenses or cloud servers are being used and shutting them down if they're not used can eliminate unnecessary overhead, with no impact to business continuity.
But before you can eliminate waste and optimize your current infrastructure, you need to know what's there. Without visibility into the entire IT estate, you won't know how to make cost cutting optimizations without disturbing business continuity. To put it simply: You need to know what you have, in order to manage it in a cost-effective way.
And while ITAM is often associated with a specific scenario such as license compliance, it's actually the foundation for a broad range of activities, including cloud migration, ITSM, cybersecurity and more. In all of these use cases, knowing what software and hardware resources comprise the IT infrastructure is the essential starting point. Without that data, taking action around any IT use case is impossible.
The typical way of collecting data is per use case: IT needs to identify potential vulnerabilities to strengthen its cybersecurity posture, or there's an organizations-wide software update that needs to be rolled out to all laptops, for example. Each time, a new ad-hoc inventory is collected, requiring dedicated resources. Although much of the data may overlap, not one of these scenario specific inventories is complete, and when a new IT scenario comes up, the process begins again. Creating a usable IT inventory for every new scenario consumes a tremendous amount of time and effort on the part of IT, hurting the ROI of the specific project in case, or makes focusing on innovation or other revenue-generating activities difficult.
Wouldn't it make more sense to begin with a single system of record that keeps an accurate, up-to-date inventory of all software and hardware assets that comprise the entire IT estate? In this model, all of the necessary data for any use case is available, accurate and readily accessible. There's no duplication or rework needed, so IT can be much more efficient and cost-effective in responding to the needs of the business.
Take on ITAM Holistically
With a complete system of record for all of your IT assets -- software, hardware, mobile devices, virtual machines, servers and more -- you gain visibility into your entire IT estate and have accurate, complete data to support multiple business scenarios. This holistic approach to ITAM leads to substantial cost savings, while enabling IT teams to act more quickly and efficiently, since the necessary data is already there. Learn more about our ITAM 2.0 Strategy.
With a dedicated ITAM system such as Lansweeper, organizations can leverage this holistic approach to create and maintain an always-accurate IT inventory, reducing costs and empowering decision-makers to make informed tactical and strategic decisions for their organizations.
"Our approach is to build and maintain a single source of truth on the IT asset inventory. It is the baseline for recurring processes, projects of all kinds, and rapid action when needed. Creating a new inventory every time a new IT-specific use case is introduced is an enormous waste of time and resources."Maarten Saeys, CPO at Lansweeper
In our next blog post, we'll explore five specific real-world examples of how Lansweeper is helping organizations save time and money while improving their effectiveness in supporting key business initiatives. To learn more about Lansweeper, watch our product video or start a free trial to see how fast Lansweeper can deliver results.