Credit crunch doesn’t make IT cost reduction the goal
By Simon Bisson & Mary Branscombe in Editorial
Posted in People, Enterprise, Business, HP on
It’s still about adding value according to HP’s software and services VP Tom Hogan. He was presenting to a group of 30 IT executives in London the other day and he thought he’d respect the mood of the moment. “I was very intentionally talking about cost reduction and efficiency because of all the uncertainty in the world economy. I wanted to pound the point on how IT can help save money,” he told us. But he’d read the mood wrong for the UK.
“It was interesting how many people said ‘Great, but we really don’t care about that. What we care about is how can we add more value in our line of business, because senior executives are still willing to spend more if they get the value from IT.’ It makes a point in this time of uncertainty. Ten years ago when the world was so unstable, IT would have been in shutdown. Now IT is so key that they’re still thinking about what to do next.”
Will what they do next include buying HP software? Take Mercury and Opsware and the ‘business technology optimisation’ tools that HP has built with them. They’re not tools for doing business with IT; they’re tools for turning IT into a business, for giving the IT department KPIs and scorecards they can track the way other business units do. Investing in IT that does IT might not be top of the shopping list tactically, but a real CIO does strategy these days.
Salesforce recently commissioned a survey of UK CIOs at small companies; Ian Parkes who conducted the research calls CIOs an endangered species. “They’re going to be rebranded as the chief operating officer or even removed. They’ve got to show value add, but they are not able to articulate it from the point view of looking for investment. Too often they do not have sufficient power to do what you would imagine a CIO would do, they are not board members and they don’t have that level of power or credibility within the organization.”
If you want to spend money on IT at the moment, you’re going to have to be able to explain the value and explain it in business terms.
-Mary
Not yet rated
Loading ...Make a comment
Tag cloud
Archives
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
Most commented posts
- Java’s SSVAGENT.EXE: training the monkey
5 comments
- Wubi Tuesday
- Not very open, not very social
- The best mobile game ever
- A Big Day In The Enterprise IT World
- Employees are our most valuable asset (snigger)
- Biometrics - it's not the technology that's broken
- More battery life, fewer explosions
- Spam Fighting in Exchange
- IDF: Will SSD mean the end of 5GB free?
Highest Rated Blog Posts
- Nobody knows what Web 2.0 really is (100%)
- Songs of distant satellites (100%)
- Log in and lock in (100%)
- Mommy, why is there a home server in the office? (100%)
- Employees are our most valuable asset (snigger) (100%)
- Locking down IT or blocking creativity (100%)
- Video opera? What would you do with huge bandwidth and millions of pixels? (100%)
- Consumer BlackBerrys are good for business (100%)
- HD Trek (100%)
- Top tips for speeding up Vista (100%)