Does Reduction In Organisation Size Reduce IT Spend?

Austerity has become one of the new key words in our everyday language as the economy has impacted on our working and private lives over the last few years.

In business it means that whatever sector you work in, leaders have needed to ensure their organisation is running efficiently from a budget and operational point of view.

But the way traditional ICT works means that infrastructure doesn’t always reduce when the size of an organisation decreases.

There may be less PCs on desks but the cost of IT equipment in data centres doesn’t reduce.

This means it can be difficult to cut out certain aspects of ICT – and this is where cloud can make a real difference.

One of the real benefits of cloud is that it can be as expensive or inexpensive as you wish.

When you want to extend your services because business is booming, you can pay more if you need more IT services.

If you need less because of seasonal demand or business is not as great as it used to be then you will pay less.

Many cloud applications are sold on a per user, per month basis so, for example, if you have 10,000 employees one month but 9,000 members of staff in the second month then the cost of using cloud will reduce.

Huge cost savings can be made since cloud is based on consumption rather than buying IT infrastructure which is not needed.

A company buys a server to cope with the peak of its activities but for 90 per cent of the time it is practically idle.

In the cloud world, the cost of cloud will go up or down automatically so you are only paying for what you are actually using which makes much more financial sense.

This might happen with software in the future because it may be sold on a per transaction basis so if you carry out fewer deals then you pay less.

It is effectively like pay as you go for your mobile – and will save businesses money since they are only paying for IT services they are actually using. That is a win-win!

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3. Public Sector Efficiency Expo, London – Tues 6th March 2012
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