Containing IT Costs Long-Term

IT managers and CIOs today face a daunting , and for the most part, daily challenge. Given the economy and financial directives to “get lean,” managers have been asked to decrease the cost of their IT infrastructure and accelerate ROI, all while improving service levels.  “Do more with less,” is the management plea.

The question surrounding most IT investments becomes, "How do I reduce my up-front costs and recover my expenditure sooner?”  These same managers sometimes do not realize that part of that ROI can be recouped from hardware assets that could be retired at a point to achieve a maximum ROI.  More on that point below.

A lower Total Cost of Ownership (TCO) for many IT operations is increasingly found via virtualization. This includes the enhanced integration of servers, storage, and networking.  By running multiple virtual servers through one physical server, businesses gain flexibility, cut hardware and energy costs, and in many ways simplify management.  A virtualization solution lends itself to greater scalability as well.

Some other cost containment solutions being discussed in the IT landscape include:

Upfront ROI analysis on any project – If plans call for the integration of new systems, tools or development services, IT managers are working to develop better businesses cases to justify recommendations.  Elements that need to be outlined include an understanding of the full costs, how revenue will be generated or operating costs reduced, how the project will be implemented and how long the implementation will take.  The financial statements follow with timelines for the ROI.

Outsourcing certain operations:  From datacenter management to help desk services, managers are looking at all areas that are could be cost effectively outsourced.  If it comes to having to cut staff but not services, the outsourcing solution for at least some activities, has become more prominent.

Investing in personnel:  Some innovative companies are cutting costs by changing the human resource element of their IT operations.  Aligning needs and IT support services is driving hiring decisions in which highly capable staff is recruited that can run with less daily management supervision.


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While there are other ways that IT departments are becoming more efficient, a number are beginning to learn how, as Gartner states, “The timing of technology refresh cycles and the resultant disposal of older technology can have a significant impact on acquisition costs, life cycle expectations associated with the new equipment and the potential revenue associated with remarketing of retired assets.”


Even equipment that is four years old or older usually has more value than is thought possible.  To maximize that ROI, however, requires that an ITAD provider employ best practices for high level refurbishment, have established remarketing channels in place, and know how to add value to assets while maintaining all data security and environmental compliance.  Going beyond the basics of meeting ITAD environmental and data security requirements, more and more IT managers are able to generate revenue while also cutting operating costs.  This is an IT asset management economic formula for success.

Contact PlanITROI at to learn more, or call 973-664-0700, ext.118.