Eight Ways to Avoid Explosive Rises in IT Costs

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Software vendors are increasingly dependent on and protective of their maintenance fees, which often generate profits of 85 percent or more and account for almost half the revenue of some. These fees are rising steadily, and are more difficult for ITAM and IT procurement managers to reduce, even when the software is not in use. To deal with these changes, ITAM and procurement professionals must improve their demand management skills, avoid purchasing licenses that they do not require and negotiate price protection for maintenance payments. They must also understand the impact of emerging third-party maintenance options and recent EU rulings on the resale of licenses.

IT asset cost optimization is a growing concern for IT asset management (ITAM) and IT procurement professionals. Gartner's 2013 CIO Survey shows that CIOs continue to include "reducing the cost of IT" among their top three business priorities. At the same time, ITAM and IT procurement executives face eight disruptive forces that, if not managed proactively, could lead to sudden increases in IT asset costs.

This slideshow features the disruptive forces that could have a significant impact on ITAM and IT procurement professionals, together with advice on how to contain or mitigate them from Alexa Bona, vice president and distinguished analyst at Gartner.


Related Topics : A Big Market for Big Data Jobs, Midmarket CIO, IT Management Automation, SharePoint, Technology Markets

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