“2010 is about balancing the focus on cost, risk, and growth. For more than 50% of CIOs the IT budget will be 0% or less in growth terms. It will only slowly improve in 2011,” said Peter Sondergaard, senior vice president at Gartner.
While this is not exactly the kind of news we like to hear, the research firm also offers 3 budgeting advice:
- A Shift from Capital Expenditure to Operational Expenditure in the IT Budget — Concepts such as cloud services will accelerate this shift. IT costs become scalable and elastic. CIOs need to model the economic impact of IT on the overall financial performance of an organization.
- Impact of the Increased Age of IT Hardware — With delayed purchases of servers, PCs and printers likely to continue into 2010, organizations must start to assess the impact of increased equipment failure rates, and if current financial write-off periods are still appropriate. Approximately 1 million servers have had their replacement delayed by a year. That is 3% of the global installed base. In 2010, it will be at least 2 million.
“If replacement cycles do not change, almost 10% of the server installed base will be beyond scheduled replacement be 2011,” Mr. Sondergaard said. “That will impact enterprise risk. CFOs need to understand this dynamic, and it’s the responsibility of the CIO to convey this in a way the CFO understands.”
- IT Must Learn to Build Compelling Business Cases — 2010 marks the year in which IT needs to demonstrate true line of sight to business objectives for every investment decision. IT leaders can no longer look at IT as a percentage of revenue. CIOs must benchmark IT according to business impact.
Sounds familiar? We're no research firm but we're glad we're heading towards the right direction. Here is why:
Number 1.Everything that Pointivity offers requires no up-front capital, just pay-as-you-go making it operational expense in nature. From our Hosted Application to total IT outsource with iTOS, our pricing model allows the contract to fluctuate monthly without costly changes or renegotiation.
Number 2. All of our hosted solutions includes upgrades and updates so our customers never have to worry about patches, new versions or licensing renewal fees. Everything is included when we deliver your IT solution. We take the risk out of building and managing your own IT so you can focus on your core business. Let our experts handle keeping up with IT.
Number 3. We’ve been delivering custom IT solution to our customer via iTOS for years, just checkout some of the case studies to see how our customers have benefited.
The bottom line: iTOS is a business strategy because we do business with your bottom line in mind.