Who makes the decisions around here?

Rack or Blade? 8-core or 28-core processor? Enterprise or Standard license? 3-years or 5-years support contract? Cloud or On-Premises? These questions do not sound like board-level decisions but they do carry a million-dollar price tag.

When we think about decisionmaking in enterprises, we tend to think that decisions driving millions of dollars of costs are made at a high level by executives weighing long-term effectiveness and cost efficiency. Within IT, the reality is often quite different.

Here, decisions driving millions of dollars of costs are made every day, by employees who are looking to solve problems in the short term and who have little or no information about the cost impact of their choices of software and hardware.

As a result, the decisions, while often effective at solving the technical problems, are very rarely made with a broad cost view or longer-term perspective. Not because they do not want to make good decisions but because the information is rarely available to them.

Employees at this level typically do not have the budget or inclination to seek outside help, even though many decisions about licensing choices or amortization periods should carry the warning: “Do Not Try This at Home”. The complexity can be daunting, and there is no shame in giving your employees the best possibility for making a good economic decision, not just a technically effective one.

Shameless plug:

At KOSTNER we enable these employees to make good decisions by giving them concrete information about their current configuration and costs, and an easy way to choose among the multitude of options available to them today. Simulating existing workloads running in new types of hardware and cloud offerings, we are able to present the best long-term, broad-view solution.

Luckily, even for decisions made in the past, we are able to reclaim millions of dollars in unnecessary costs for licenses, cloud services, and hardware support fees. Even after the hardware is purchased, support fees account for 60-80% of total costs. There is nothing wrong with revisiting old decisions and applying long-term and broad-view perspective to them. The result is often large-scale savings with minimal effort.