Friday | 9 January, 2009
CIO
Five outside-the-box ways to cut IT costs
Tough choices lie ahead for IT departments. Get ahead of the curve with five cost-cutting tactics designed to hurt less
Tom Sullivan (InfoWorld) 15 October, 2008 07:24:00

Every time the economy turns downward, IT shops take a hit.

In the US IT market, Forrester Research predicts that growth in technology goods and services will slow in the fourth quarter of this year, a scenario likely to continue into the first half of 2009. Gartner, meanwhile, is advising clients to hedge, rather than presuming the economy will pick up next year.

The best time to consider cost-saving measures is before the CFO comes knocking on your door to ask -- or demand -- that IT slash its budget.


Read the InfoWorld features "Is IT recession-proof?" and "Guerilla IT: How to stop worrying and learn to love your superusers."
"Are we trying to cut IT costs? Yes," says Jon Crowe, director of enterprise technology services at Cabela's, an outdoor equipment retailer. "We're sitting down and thinking how we can be smart about it."

Indeed, several IT execs interviewed for this story are looking to ferret out simple, and often surprising, ways to save money during tight times.

1. Harness consumer technologies

Plenty of IT shops are wrestling with how -- or whether -- to fit consumer and Web 2.0 technologies into the enterprise, says Peter Blatman, a principal in Deloitte Consulting. But some are already making it work to their advantage.

Vivek Kundra, the CTO of the District of Columbia, recalls the day he had an epiphany: The technology most users employ at work is kludgy compared to what they use in their daily routines, even though consumer technologies are often less expensive or even free. "It comes down to a philosophical view I have that, for some weird reason I cannot understand, the way we organize ourselves at work is so much less agile than what we do in our personal lives," Kundra explains. "Why not use consumer technology at work?"

That's exactly what Kundra did. "We were spending a ton of money on our portal, and I realized we didn't need to," he adds. So Kundra abandoned the portal and replaced it with considerably less expensive wikis and turned to YouTube videos. Kundra said the moves were relatively easy because IT did not have to train employees how to use the tools.

Echoing those sentiments is Greg Rhoades, senior IT manager of infrastructure services at Panera Bread. Rhoades says his company is also moving toward consumer technologies. "We're taking some steps in that direction. We're also looking at social networking tools because people use them in their personal lives, and we want to leverage the technologies that people already know how to use."

Additional Resources
Executive Guides
Whitepapers
Zones
Zone logoZones provide focussed content from CIO and leading technology partners.
Newsletter Subscription
Sign up for our CIO newsletters!
RSS Feeds
Featured Whitepaper Sponsors
Market Place
 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
  • +

    CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00

    Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00

    Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05

    Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    TJX Maxx hacker banged up for 30 years 09 January, 2009 11:26:00

    Key figure in the infamous TJX Maxx Wi-Fi hack of 2005 has been sentenced to 30-years in prison by a Turkish court.
    Maksym Yastremskiy, the Ukrainian accused of being a key figure in the infamous TJX Maxx Wi-Fi hack of 2005, has been sentenced to 30-years in prison by a Turkish court.
  • +

    Data breaches rose sharply in 2008, says study 08 January, 2009 08:27:00

    More than 35 million data records were breached in 2008, according to the Identity Theft Resource Center.
    More than 35 million data records were breached in 2008 in the U.S., a figure that underscores continuing difficulties in securing information, according to the Identity Theft Resource Center (ITRC).
  • +

    Rogue SSL certificate exploit puts VeriSign on the spot 07 January, 2009 11:04:00

    Wishes "white hat" researchers had notified VeriSign before public demo.
    Following the success of researchers last week in creating a false SSL certificate based on VeriSign's RapidSSL brand, the company is scrambling to explain how it happened, how it's preventing it from reoccurring, and whether its other SSL certificate-generation services are at risk.
  • +

    With Gaza conflict, cyberattacks come too 05 January, 2009 08:03:00

    Pro-Palestinian hackers have defaced thousands of sites following attacks in Gaza.
    The conflict raging in Gaza between Israel and Palestine has spilled over to the Internet.
  • +

    5 ways to secure your Blackberry 18 December, 2008 12:58:00

    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands
    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands.
CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
Watch the latest latest edition of CIO Innovation which is now available for download.
Watch the webcast
Sign up to the CIO Innovation update email


CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II
Listen to the latest edition of CIO Live which is now available for download.
Listen to the podcast
Sign up to the CIO Live email
Whitepaper

Understanding Email Marketing: A Guide for SMBs

Email marketing is often viewed as a marketers silver bullet. If used effectively, email campaigns will provide strong results for a limited spend each and every time. Download this white paper to discover how email marketing can work for you and your business.