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IT costs concern managers, survey shows

06 August 2013, 14:07Duncan Alfreds

Cape Town - With the global internet cloud market set to hit $131bn in 2013, the most pressing concern for IT managers has been the increased costs of their assets, research has shown.

The 2013 CIO Survey published by Gartner shows that reducing the cost of IT is one of the highest priorities for business.

The survey found that the cost of company IT infrastructure was negatively impacted by a variety of factors as companies move more of their data online.

Cloud computing has been touted as a saviour for business, but the costs to deploy cloud solutions may escalate the costs of IT asset management (ITAM) as the market is predicted to reach $180bn by 2015, Gartner said.

"ITAM professionals must be able to provide accurate cost models that compare traditional services with industrialised and cloud services, and be able to explain the comparative benefits and risks," the report says.

Software licences

It also found that software maintenance fees were resulting in increased costs.

"Software vendors are increasingly dependent on and protective of their maintenance fees, which often generate profits of 85% or more and account for almost half the revenue of some. These fees are rising steadily, and are more difficult for ITAM and IT procurement managers to reduce, even when the software is not in use."

Gartner recommended that IT professionals reduce the number of licences purchased or negotiate discounts for software maintenance.

The survey found that that companies were collating large amounts of data in order to gain a competitive advantage, but Gartner suggested that industry professionals reduce these costs by optimising data and business "metrics".

"IT procurement professionals may also have to start sourcing data and defining and negotiating new business service-level metrics for information services in relation to integrity and quality."

The growth of cloud services has not gone unchallenged and in SA, and industry player suggested that although cloud services were touted as cheaper, it came with an indirect cost.

"If anybody says it's cheaper, yes, in economy of scale when I share my infrastructure with multiple customers, it becomes cheaper. When I do that, I inherit a security risk - my data; my infrastructure is being shared with other people," Appie Pema, CEO of Aptronics told News24.

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