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IT’s expensive …

IT’s expensive …. Where does all the money go?. Thirty-three per cent of organisations are unable to calculate the financial cost of their IT systems, according to a report from research group Vanson Bourne. ComputerWeekly.com - April 2006. Low Cost Alternative. New Technology. Support.

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IT’s expensive …

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  1. IT’s expensive … Where does all the money go?

  2. Thirty-three per cent of organisations are unable to calculate the financial cost of their IT systems, according to a report from research group Vanson Bourne. ComputerWeekly.com - April 2006

  3. Low Cost Alternative

  4. New Technology Support Expectations Compliance Training Availability Redundancy Best Practice BCP Reliability Security Policies Legacy Systems Data Explosion Facilities Management Governance

  5. Reliability “In the Internet era, reliability is becoming something you have to build, not something you buy.That is hard work, and it requires intelligence, skills and budget.Reliability is not part of the basic package.” Joel Snyder – Network World Test Alliance 1/10/2000 “Reliability: Something you build, not buy”

  6. Availability • Change in expectation – “Always On” • Instant access • From anywhere • Reduced maintenance windows

  7. Redundancy One Box can not do everything Some failures are outside your control Fast recovery Increase in complexity (Clusters, SAN, Fibre Fabric, HSRP)

  8. Never enough • Data Explosion • Increasing user base • Streaming media • Email • Wireless • Gadgets (Smart Phones, PDAs,…) • Databases • Search engines • IT support staff ;-)

  9. Facilities management • Engine room • Cooling • Power – UPS & Generator • Racks & cable management • Fire prevention & detection • Physical security • Control & monitoring systems

  10. Security and threat mitigation • Then • Anti-Virus • Now

  11. Ongoing infrastructure costs • Cabling • Service provider • Service contracts • Firmware & software • Oopsies • Re-fresh

  12. Legacy equipment support • Layer Cake Architecture • “Extended” Life-Cycles • Results: • Old Hardware • Legacy Operating Systems • Unsupported Applications • Aging Cabling Infrastructure • Yesterday's WAN link

  13. Operational costs • Compliance • Compatibility – Yeah, right! • Visibility, logging and auditing • Documentation • Business enabling technology

  14. Part 2

  15. Many companies see IT as a black box that generates significant costs. Few business managers know exactly what they are paying for and why their outlays keep rising. From the McKinsey QuarterlySpecial to CNET News.comAugust 23, 2005, 10:00 AM PDT

  16. Training requirements • Project training • Staff training (new technologies) • Staff training (development) • Staff training (compulsory) • Technology trends awareness

  17. Business alignment • Aligning the technology with the business • Building efficiencies into the solution • Introducing additional features not previously utilised • Enable the re-alignment of business processes and streamlining of service delivery mechanisms through IT

  18. Growth & Business changes • Growth in the client base • Growth in services required • Growth in the uptake of services • Changes in business requirements & growth due to business driven projects • Growth in the physical network

  19. Business Continuity • Identification of services – service catalogue • Identification of KPI’s • Identification of levels of downtime • Development of processes to be introduced at each level of downtime • Summary of what we can deliver within our recurrent budget

  20. Special needs / Individual requirements • Divisions applications • Special events • Security of information • 69 Members all with different requirements • Electorate offices

  21. Departmental commitments • Department as a customer – respond to 2 Directors, Executive Director, Chief Executive and Departmental Executive • Compliance with Departmental policies • Ministerials, briefings, please explains • Compulsory training

  22. Health & Safety commitments • Lifting/moving of equipment • Crossing an arterial road • Disability awareness • Departmental requirements

  23. Licensing & maintenance agreements • Licensing for Servers • Licensing for Desktops • Licensing for network management applications • Maintenance agreements with service providers, Novell, Microsoft, Cisco, HP, etc • Additional maintenance for out-of-date or aging equipment

  24. Governance ..Who decides what? • Dept of Treasury and Finance (DTF) – Electorate Services • DTF – Treasurer • Attorney General’s Dept (AGD) – Parliamentary Counsel • DAIS • Parliament • Members of Parliament • ……..

  25. Investment in our people • Training • Performance development • Team development • Knowledge assets and knowledge management

  26. Cost vs. Value Often the true value of IT is not realised until the services are unavailable.

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