IT Cost Optimization

Every IT organization is being asked to reduce costs while achieving better business results. Yet, too often, IT Cost Optimization ends up being an annual planning exercise that leaves teams scrambling to compile information and hiring consultants to figure out where costs can be cut without impacting the business.

This is an extremely difficult problem that requires ongoing tracking of detailed cost breakdowns against business goals. IT Cost Optimization should not be a special exercise. It should be normal business for your IT teams and business units to continuously identify opportunities to optimize IT costs. But the task is simply not feasible if performed manually or using Access, Excel, and similar solutions. Now more than ever, organizations require automated solutions to run a cost-effective IT organization.

Get More Value from Your IT Spend

Digital Fuel's IT Financial Management (ITFM). IT Cost Optimization is a SaaS business application that helps IT organizations set cost reduction strategies and execute them. It automatically and continually tracks TCO, unit costs and their associated breakdowns by expense type, consuming entity, utilization of IT resources and assets, and quality of services, while comparing all of these to business goals, industry benchmarks, and alternatives.

These strategies include potential areas for continual cost reduction, such as candidates for virtualization and consolidation, storage tiering, SLA reduction, technology end-of-life or refresh, deferral of upgrades, support reduction, and more. With this knowledge, you are empowered to make intelligent decisions about investing in IT services and activities that provide the greatest ongoing value as the business and technology evolves.

The Value of IT Cost Optimization

• Lower IT costs with proactive control and visibility
• Track and compare IT costs against business goals, industry benchmarks, and alternatives
• Automate error-prone manual efforts

Key Capabilities

• View and analyze TCO and unit costs along with their breakdowns and trends for all IT services
• Identify the top spenders and consumers of all IT services
• Analyze key IT efficiency ratios and compare to industry benchmarks
• Spot such ongoing potential cost saving strategies as potential for virtualization, consolidation, retirement or refresh, SLA reduction, and tiering

Sample of Out-of-the-Box Reports

• TCO and unit cost by services
• Industry benchmark versus unit cost by services
• TCO trend by service
• Unit cost trend by services
• Usage trend by service

IT Cost Optimization Process Flow Diagram

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IT Cost Optimization Screenshots

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