Virtual Cost Allocation (Measuring and Managing the Cost of IT)
As CIO’s are continually asked to do more with less (more service delivery, less budget, less staff), to continue making strides to meet business requirements is difficult. While trying to solve the problem of putting IT closer to the business lines being supported, the once prevalent decentralized approach has proliferated redundant operations, personnel, and costs. Various strategies to answer the problem have included Outsourcing, SAAS, or a mix of both. These strategies have proven that while realizing reduced cost, there was also reduced control of the results. The complexities of the IT environment and growing needs of the business are not easy to solve.
New innovations are now offering CIO’s new strategies to solve this problem. One of the primary approaches that have evolved is centralization of Infrastructure Support using decentralization of IT to support the business and remain closer to the end customer. This offers the best of both worlds. IT Consolidation of Infrastructure is now being achieved and managed through technologies including Virtualization and Cloud Computing. But the first step in implementing these technologies and strategies is to truly know the common operational environment.
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