Whether your IT team is currently weighing options such as migrating to the cloud, replacing legacy software or implementing a completely new technology solution to support a new business initiative, it’s imperative to understand the value and cost drivers associated with all your technology investments. However, getting a complete and accurate view of your existing IT products and services and their total associated costs is challenging for many organizations. All too often, key cost and utilization data is stored in disparate systems, or worse, its ‘siloed’ by individuals or groups of employees within the organization, inhibiting complete and accurate transparency into IT expenditures.
In this era of global belt tightening where every dollar, yen and euro counts, it’s crucial to have complete insight and data to support all technology deployment decisions: storing information in ‘silos’ should be a remnant of a past era for IT management. Forward-thinking companies and their leaders are turning to fully automated technology financial management (TFM) solutions to eliminate key data ‘siloing’, uncover hidden costs, and identify cost optimizing opportunities while effectively communicating the value of IT to the entire organization.
For the first time, organizations can have the ability to centrally aggregate massive amounts of accurate, dynamic technology cost and consumption data. This capability is critical for larger organizations, especially as enabling technologies have leveled the playing field for smaller companies, allowing them to compete globally with even the largest corporations in unprecedented ways. A best practices approach by the entire IT leadership team toward TFM makes it possible to optimize the cost and value of all IT products and services, ensuring that the IT organization’s priorities are in complete alignment with corporate business goals.
TFM capabilities can:
- Deliver accurate insight into the total cost of ownership (TCO) for applications, assets, infrastructure and manpower using a consolidated end-to-end technology financial management platform
- Identify redundancies in technologies, applications and services, making sure organizations do not keep or add unnecessary costs to its existing technology deployments and IT spending
- Enable taking full advantage of cloud services that augment and enhance internal technology delivery mechanisms at optimized costs
- Ensure service level agreements (SLAs), software licenses and vendor agreements are up-to-date, accurate and aligned with business requirements
- Pinpoint opportunities for IT product and service consolidation or rationalize redundancies based on business goals
- Provide proper governance for managing the organization’s technology infrastructure and operations
- Benchmark IT expenditures against other companies and industry-based peers
Technology is one of the largest expenditure for many organizations. A TFM solution brings discipline to how IT is delivered and ensures that current and future technology investments support business priorities. Unless you can afford to leave money on the table, don’t make another technology investment without taking a best practice approach to technology financial management.
Next best reads for you
- News VMblog: 2023 Predictions for IT Expense Management
- On-demand Webinar How IT Should Adjust for the Next Normal