IT's biggest money wasters

Learn how to rescue precious resources from tech's six most notorious money pits

By , InfoWorld |  Career, cost cutting, IT management

Even in these lean times, where tech budgets are trimmed to the bone, money gets wasted. Companies routinely overspend on software licenses and service-level agreements. It's possible to have too much bandwidth at your disposal and to store too much email on company servers, not to mention the billions of dollars still wasted on paper and ink. Then there's the inevitable project from hell that ends up swirling down the toilet, dragging your precious IT resources behind it.

It doesn't have to be this way. Though there's no one-click solution to any of these money wasters, there are ways you can stanch the flow of dollars and use it on the items that will make your IT organization shine. Here are the secrets.

[ Find out how to assemble your IT special ops group to tackle the toughest tech challenges -- see "A-Teams of IT: How to build your crack strike force" | Get sage advice on IT careers and management from Bob Lewis in InfoWorld's Advice Line newsletter. ]

IT's biggest money waster No. 1: Dusty software licenses Collectively, U.S. companies are paying billions for shelfware -- whether it's software that was never adopted or for employees they no longer have, and often at prices that are higher than what is actually needed. A 2010 IDC survey of midsize and large businesses found that well over half of enterprise applications are underutilized, with anywhere from 25 percent to more than 75 percent of licenses paid for but unused, notes IDC analyst Amy Konar.

"Organizations typically use less than 50 percent of an installed ERP system and are paying significant licensing and maintenance fees for modules and functionality that are not providing value to the business," says Kathryn Douglass, managing partner of IT consultants WillowTree Advisors. "They need to review their named-user licenses and renegotiate agreements to remove unused or duplicate users from licenses. The difference between a 2,000-named-user license and a 1,500-named-user license can easily be $500,000."

Small and midsized businesses may be able to get away with using an Excel spreadsheet and their accounts payable records to true-up their software needs. But larger, more complex operations need enterprise-level software that can track software assets, gauge their use, and optimize the licenses accordingly, says Steve Schmidt, vice president of product management for Flexera Software, maker of application usage management solutions.


Originally published on InfoWorld |  Click here to read the original story.
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

CareerWhite Papers & Webcasts

See more White Papers | Webcasts

Answers - Powered by ITworld

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Ask a Question
randomness