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Extending the position of IT dollar in the year 2010

12/22/2009 11:33:48 AM

The global economy may be getting positive, but many businesses remain vigilant and budgets are still mostly inhibited. In simple words, organizations which have spent the previous year in budget-stretching mode are probable to find much more ways to elaborate their IT dollar in the upcoming year. The businesses can make the most of bank for IT bucks.

One of the latest technologies for appearing on the scene is also one that can help companies to keep hoard on IT expenditure. Cloud computing, where enterprises can outsource storage or long-lasting processing to other service providers could be a process for money-saving mechanism for businesses in 2010. Particularly, organizations need to look forward for shifting storage and processing to the cloud platform.

This trend is warming up quickly. Market research firm IDC has made projection that the worldwide revenue for the cloud computing sector is likely to increase from US$17.4 billion (S$24.3 billion) in 2009 to US$44.2 billion (S$61.9 billion) by 2013.

The common applications, which enterprises could send to the cloud, are those requiring periodic, but heavy demands on computing, like at end-of-month closing for accounting applications. The other cloud candidate would be disaster recovery, when enterprises need back-up capacity in case a primary data centre goes down.

A second tip for enhancing IT dollar lies in yet another rising hot technology. Businesses should also look to consumer applications and Web 2.0 technologies for enhancement of productivity and improve outreach. IT departments would do well to consider consumer-oriented approach of Web 2.0 technologies, for interfaces on their proprietary internal applications. They are actually consumer-focused and Web 2.0 technologies are often cheap and sometimes free.

A third strategy is to consider investment in multi-functional devices. Multi-functional devices to run two or more related applications on a single appliance and address the problem of a creation of hardware solutions in an enterprise. Appliances have their positive points, but hosting them for multiple applications could potentially lead to an over-population in the data centre over time. However, there are vendors who offer powerful slim appliances that save appliance webhosting costs.

Fourthly, consider the hosted or service-based, offerings for cutting down the costs. Dissimilar to traditional on-premise applications, the offerings like Software as a Service (SaaS) and managed services generally does not need big upfront licensing fees. Tight cash is an advantage. IT should see SaaS as reducing its workload, not as any threat.

Telecommuting is the fifth key strategy towards optimizing your IT budget for the year 2010. The companies are starting their trends to see telecommuting as an opportunity, not as any kind of issue. More telecommuters translate to potential savings for the company on IT, facilities and utilities overheads and can enhance employee productivity. Web conferencing can help your company's telecommuters stay in touch with the rest of the company and reduces the need for business travel.

The companies in the region are warming up to telecommuting as seen in a 2008 survey by IDC, which revealed that about 81% of respondents agree that working remotely improves productivity as compared to only 61% in 2005.

The issue of security is also primary. Undoubtedly, the strategies outlined above will give a challenge to the traditional network security model, which need to stretch for accommodating telecommuting, cloud computing, SaaS, Web 2.0 and managed services.

Security for your organization is business vitality. It needs to be kept simple and sound. All the advanced capabilities that IT can enable do not count for much without protection. Network security is dominant factor in ensuring the smooth running of a company and contributes to improving operational effectiveness and efficiencies. At the same time, companies can tap this network to monitor employee activity to ensure high range of productivity.

With the dollar-stretching concept in mind, it is useful to remember that the total cost a company has to pay for security is not only measured in its list acquisition pricing. It is also in the cost of installation, usage, management and maintenance of your solution.

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