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MeetingCIO’s Top IT
Priorities
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“With an increasinglycompetitive ecosystem,IT must improve if it isto remain relevant.
Improve IT’s on-timeand on-budgetperformance was the#1 IT managementpriority (...) and ITneeds to improve itsdelivery capability and
alignment with businessprocesses.” Forrester Research Inc.1
1 ”2013 IT Budget Planning Guide For CIOs”, Forrester Research, Inc., December 21, 2012
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3Meeting CIO’s Top IT Priorities
Sumir KarayiCEO
Reducing IT running costsRunning IT efcientlyis being sought bybusiness leaders whoare demanding that CIOsmust reduce costs
Businesses are demanding that IT isrun more efficiently. We at 1E havebelieved this for years and all oursolutions are focused around this onekey mission. The great thing today isthat top analysts’ research shows thatCIOs have got the message.
Forrester Research Inc.’s ForrsightsBudgets and Priorities Tracker Survey,“2013 IT Budget Planning Guide forCIOs,” states that IT departments inorganizations are spending too muchon just maintaining the status quo. Thereport recommends that CIOs shouldlook to improve the effectivenessand efficiency of IT to generate costreductions and improve competitiveadvantage.
To optimize spend and improveefficiency, Forrester recommendsthat CIOs should start by looking atthe IT MOOSE budget, (Maintenance,On-Going Operations, Systems and
Equipment – the expense needed tokeep an IT organization running).
In the last quarter of 2012 Budgets andPriorities Tracker survey, Forresterfound that IT decision makers wereallocating nearly half of their IT budgetto ongoing operations and maintenanceand nearly a quarter on expandingcurrent capacity amounting to a total of71.4% being spent to support businessgrowth which leaves less than thirtypercent for new IT initiatives andprojects.
By actively reducing the cost ofsupporting past IT expenditure,businesses can free up budget andresources to reinvest in innovation.Many of the 3,500 senior IT executivesand technology decision makersaround the world who were surveyedalso agreed with the report’s findings.
Why hasn’t there been massive
interest in tackling these challenges
to date?
CIOs have long been tasked with doingmore with less without sacrificing
quality, security or business goals.Typical IT cost cutting measures focuson the obvious such as outsourcing,service and hardware consolidation,
tougher contract negotiations,higher demands on employees,greater purchasing controls, andmore. CIOs are well aware that aproportion of every IT budget is wastedon technology that is not used orrequired, and/ or delivers no value tothe organization but they don’t alwaysknow how to change the status quowithout risk.
Many corporations still fail to considerIT cost reduction as a full-timeinitiative and in addition, they havefound that this approach has led todecreases in productivity with lessresources and money available to focuson new projects and initiatives, notmore.
“IT budget benchmarksenable organizationsto gauge their IT
spending relative to theirindustry peers.”
FORRESTER RESEARCH INC.*
Looking at automation to eliminatewaste, rather than cost reduction inthe traditional way of postponing orcancelling other projects, can havea transformational effect on theproportion of a budget available forgrowth initiatives while simultaneouslyenabling enhanced IT MOOSE delivery.
That’s where we come in.
At 1E, we believe that efficiency is thenext strategic focus that the businesswill force on to IT. This new disciplinewill bring the concept of 100 percentautomation, getting rid of everymundane and unnecessary labor-intensive steps in high cost processes.
Using best practice benchmarksacross key areas of IT MOOSE suchas hardware, software, effort andenergy 1E, through its ActiveEfficiencyplatform, enables organizations to
transform IT waste into free resourcesand money to invest in innovation andcreate competitive advantage, keyindices for success.
United StatesTel: 1 866 592 4214
United KingdomTel: +44 20 8326 3880
FranceTel: +33 1 56 60 52 35
IndiaTel: +91 120 402 4000
Webwww.1e.com
*Forrester Research Inc.Forrsights Budgetsand Priorities Tracker Survey,by Craig SymonS 2013 IT Budget PlanningGuide for CIOs,
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4 Meeting CIO’s Top IT Priorities
Where can cost reduction happen?
In the last quarter of 2012 Budgets and Priorities Tracker survey,Forrester found, the proportion of the budget set aside for IT MOOSE
is 71.4%. Forrester recommends that companies seek to focus on thisbudget as it is consistent year on year, being unaffected by new projects;
it is also consistent between companies within an industry and that lessIT MOOSE is generally more desirable - CIOs can concentrate on the
portion of the IT budget they want to reduce ie. ongoing operations andmaintenance rather than affect new initiatives and projects.
French
multinational
corporation Saint-
Gobain cut the
cost of rolling
out its systems
management
platform by 97%
with 1E Nomad
CASE STUDY
Saint-Gobain needed an efcient way to deploy software patches and upgrades
to 100,000 desktops across 6000 branch ofces.
The company was implementing the Microsoft Systems Management Platformto create better collaboration and improve productivity. By implementing
1E Nomad it eliminated the need for branch servers (due to peer-to-peer
distribution) or desk-side visits (through completely automating the patch
and upgrade tasks) which further reduced the existing server footprint and
administrative overheads.
Now the company has thirty times fewer servers than was projected at the
start of its consolidation project.
In 2013, approximately what percentange of yourbudget will to go to the following?
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
M e a n
Enterprise (1,000 or more employees)
Base = 2037 IT Decision Makers from Enterprise FirmsSource = Forrsights Budgets And Priorities Tracker Survey, Q4 2012
2013 replacement/expansion of capacityto support business growth
2013 ongoing operations and maintenance
2013 new IT initiatives and projects
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5Meeting CIO’s Top IT Priorities
Getting the priorities right
Looking forwards, CIOs from both sides of the Atlantic have similar priorities
when it comes to new IT initiatives that they want to invest in over the next12 month period. Lowering operational costs to free up money and improve
IT’s on-time and on budget performance are certainly attainable if, insteadof looking at quick wins, CIOs focus less on tactical campaigns and employ
disciplines and IT management strategies that will continuously optimizetheir IT investments.
For example, run as a continuous process, Software License Optimizationwill not only right-size the number of licenses within a business but, by
initiating regular reclaims, it enables applications to be reassigned and
eliminates the need to buy more licenses unnecessarily.Similarly, having a future-proofed automated desktop suite in place for OS
and System Center upgrades, accelerates software distribution and ensureslong-term simplied and efcient systems administration.
UNUM’s IT
Efciency initiatives
bring early
cost reductions
with continuous
automated
processes thanks to
1E’s desktop total
automation suite
Lower IT’s operational costs tofree up money for new initiative
Increase IT capacity to drivebusiness innovations
Increase IT on-time andon-budget performance
Increase the scope of IT’s centralizedor shared services to improve efficiency
Improve business processes
70%
68%
64%
61%
60%
NORTH AMERICA (N=715)
Increase the scope of IT’s centralized orshared services to improve efficiency
Improve IT’s on-time andon-budget performance
Lower IT’s operational costs to free upmoney for new initiative
Improve business processes
Increase IT capacity/resources to drivebusiness innovations
69%
68%
66%
62%
55%
EUROPE (N=357)
Base = 1072NA & EU IT Executives and Technology decision-makers from enterprise firmsSource = Forrsights Budgets And Priorities Tracker Survey, Q4 2012
Which of the following IT managementinitiatives is your IT organization prioritizing overthe next 12 months?
CASE STUDY
As one of the world’s largest employee benets companies, employing 10,000
people, Unum has a multitude of desktop applications it needs to manage.
Users can nd and download applications themselves from Shopping,reducing helpdesk calls. AppClarity gives the company visibility of all
software licenses and the ability to automatically reclaim unused and rogue
applications - in less than two months it identied $326,478 of cost savings.
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“Traditional SAM isfailing enterprises(...) whereasSoftware License
Optimizationis enhancingcompliancewhile reducing
wasteful spendon superuouslicense capacity”
1 Introducing Software License Optimization , Forrester Research Inc. September 29, 2011
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7Meeting CIO’s Top IT Priorities
Software license optimization rapidly reduces costs
As 16% of an organization’s IT budget is spent on software, identifying theusage of software licenses is critical not only for vendor compliance but
also to allow organizations to reduce spending on unnecessary and unusedsoftware licenses. Software licensing represents a major cost, administrative
burden and is a hidden license liability for organizations – often, it consumesfar more of the IT budget than necessary.
Research* has found that there is more than $400 per PC of unnecessarysoftware that could be reclaimed. Using the right tools, in conjunction with
that understanding of entitlement and usage rights to analyze all types ofsoftware deployments and determine usage enables administrators to get
an instant picture of the nancial impact of unused software and unlicensedapplications. This in turn gives them the ability to reclaim what is unused to
prepare for true-ups and vendor audits and remove the risk of being ned.
Using 1E AppClarity
Sasol reclaims
unused applications
to become
compliant and
save money
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
M e a n
Enterprise (1,000 or more employees)
Other
As a service offerings, including software-as-a-service, infrastructure-as-a-service,platform-as-a-service
Third-party IT serivces
Telecommunications services
Hardware infrastructure
Software costs
Contractors
Full-time IT staff
CASE STUDY
Sasol wanted to optimize how software licenses were used and managed and
get true visibility into applications usage to make tangible savings and reduce
license liability.
The company had thousands of different applications deployed and wanted to
ensure that its license liability was at zero.
Within a month the company saw savings of South African Rand (ZAR)
1.8 million ($260,000) which accounts for 3,000 reclaimed licenses. Thisrepresents a potential overall saving of ZAR 82m ($9.4 million) if everything
that is unused is reclaimed.
In 2013, what percentage of your budget will go to eachof the following categories?
* Software Efciency Report 2011, Opinion Matters, IAITAM, APRIL 2011
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GET IN TOUCH WITH USUnited StatesTel: 1 866 592 4214
United KingdomTel: +44 20 8326 3880
FranceTel: +33 1 56 60 52 35
IndiaTel: +91 120 402 4000
Webwww.1e.com
ABOUT 1E
1E is the pioneer and global leader in ActiveEfciency solutions. 1E’s mission is to
identify unused IT, help remove it and optimize everything else. 1E ActiveEfciency
solutions help reduce servers, network bandwidth constraints, software licenses and
energy consumption.
Our headquarters are in London and New York and we have ofces in Paris and New Delhi. Withmore than 20 million licenses deployed worldwide, 1,600 organizations in 42 countries trust us tohelp them to work efciently, productively and sustainably. To date, our customers make $1.4 billionin efciency savings. This includes $800m in energy costs alone and a reduction in CO2 emissions of6.4 million tonnes.
Our customers are drawn from public and private sectors across the world and include AT&T, VerizonWireless, Dell, ING, Nestlé, BNP Paribas, Ford Motor Company, the US Department of VeteransAffairs and the UK Department of Work and Pensions. Our largest customers have more than 300,000seats, our smallest just 500.