IT Directives Target Server Consolidation, License Compliance, Hardware Refresh

April 13, 2007
Companies closely scrutinizing ROI of any IT investment.

The top 3 funded IT initiatives include server consolidation (76%), license compliance (68%) and hardware refresh (66%) according to a study from Eracent, Inc.

The study of over 3,000 IT professionals showed that IT purchase decisions are widely driven by return on investment, potential savings and risk abatement.

"Change is constant in our industry, and this survey shows that IT leaders want to stay ahead of the curve by working on business process improvement to increase ROI and control spending," said Walter Szablowski, president of Ottsville, PA-based Eracent, Inc. "What was most surprising about the results is the widespread industry need for better lifecycle management tools to manage system growth and help define ROI."

Server consolidation is seen as an opportunity to both reduce costs and increase efficiency. The survey notes that as many as 80% of all servers are only 20% utilized, with untapped savings likely coming from reducing maintenance, power consumption and avoiding future purchases. The survey results also indicate that consolidation does not equate 100% to virtualization. The number of companies considering virtualization is nearly half that of the number of companies who are pursuing consolidation.

Respondents also indicated that bottom line results clearly drive software acquisition decisions as well. ROI and bottom line results are key purchasing drivers, however short term payback is not. Over 70% of all respondents expect a software purchase to result in savings from using the software and 60% expect a new package to improve the ROI on existing software or systems. Well over half of respondents expect new software to enhance management of IT, thus providing some material benefit or economies of scale.

The use of an IT asset lifecycle management tools strongly correlates with the trend toward financially driven IT programs and acquisitions. More than two-thirds of all companies responding indicated that they have a lifecycle tool in place or plan to license one in the current fiscal year.

To download a complimentary copy of the survey analysis and related white papers go to

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