Can IT Financing and Management Models Survive IT Change?

By Tony Lock

In a nutshell:

The models used for businesses to create IT budgets have not changed significantly in a generation. The advent of new models for the production of applications and their operational deployment, especially virtualisation and SOA, are causing stress when budgets are fixed in a way that reflects static IT infrastructures, i.e. the application / server / storage silos that have heretofore been the mainstay of IT service delivery. Is it time for the way business pays for IT to change?

Key points:

• The use of new IT models, especially SOA and ’virtualisation’ are changing the way IT services are built and delivered.

• There exists great potential in the new models to offer flexible services that can be manipulated rapidly to meet changing business demands.

• Flexible IT utilisation requires IT budgets to have similar flexibility. Only with such changes can new systems deliver on the significant opportunities to reduce operational IT costs and increase resilience.

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Tony is an IT operations guru. As an ex-IT manager with an insatiable thirst for knowledge, his extensive vendor briefing agenda makes him one of the most well informed analysts in the industry, particularly on the diversity of solutions and approaches available to tackle key operational requirements. If you are a vendor talking about a new offering, be very careful about describing it to Tony as ‘unique’, because if it isn’t, he’ll probably know.