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Wed, Apr 1, 2009 12:58 EDT
Drop in IT Spend is a Good Thing
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Posted by: aquraishi in Best Practices Topic: Architecture
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Gartner published a press release predicting that 2009 IT spend would be significantly down from 2008. If you look at Table 1 in the article, you'll notice that the majority of the reduction is in hardware.
This is a good thing. IT shops too frequently implement a major system like SAP and then move on to a new project as quickly as possible. Little planning goes into the organization and strategies that will support and evolve it. While competency centres are perhaps a little more common than they used to be, operating budgets and long-term evolutionary strategies are virtually non-existent.
The best way to drive value to the bottom line is by leveraging systems you've already sunk potentially millions into. A $500K investment in a relatively newly implemented system is likely to pay off much faster than the same investment in a brand new system. Return on assets (ROA) has a bigger boost on companies' financial statements than return on investment (ROI). This slowdown might just give companies a chance to deepen the value of current systems and contribute to higher profitability and employee productivity for the inevitable upturn to follow.
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Thu, Oct 22, 2009 4:57 EDT
Posted by: Anonymous
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Thanks for the article. I hear one can get free premium account at rapidshare search engines . Is it so?
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