“You can probably take out more than 10% of the cost base just by having the ability to measure ICT services accurately and comparing these with alternatives. The extremely rapid pace of technical evolution and the equally rapid drop in the cost of technology means that if you know your cost base at the right level of detail and know what technical alternatives might fit then savings will almost inevitable arise.”
Nigel Duke, MD Morgan Hill.
The Technical Rate of Change Can Mean Rapidly Falling Prices
In order to be sure if your ICT costs are at the right level you need to be able to measure them in a way that allows comparison against potentially less expensive alternatives. Given the very rapid pace of technological change it is quite likely that anything procured more than about 18 months ago will be considerably cheaper today.
Vendor Lock In
We are seeing a definite willingness to negotiate prices by established vendors and service providers when confronted with cogent financial arguments for an alternative. The issue is having the cogent arguments, not just now but for the long term.
IT as a Service
One way of doing this is to have the basis for measuring the real costs of ICT services. Services such as email, applications, network, voice, data centres and so on. This has traditionally been a very difficult and often expensive process usually requiring either a lot of spreadsheet work or expensive bits of specialist software.
Compare, Contrast and Benchmark
Using the Metresis model and your own data we can show the real cost of your ICT services very rapidly. By overlaying this information with relevant alternatives we can give you some very interesting options for reducing cost.
Cost
The cost of this product typically ranges from between 0.5% to 5% of the savings identified. The savings are based on current opex not capex. There is an initial scoping exercise that provides an indication of the potential level of savings available before the main product is run.
Click on the link below to view an example of analysis leading to direct reduction of IT costs.
ICT Costs Opportunities Demo Version April 2010 v1 1
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