Ten Key Actions to Reduce IT Infrastructure and Operations Costs - Slide 5

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Servers run at very low average utilization levels (less than 15 percent). Virtualization software increases utilization typically by fourfold or more, which means for a given workload that can be virtualized, a company can typically reduce the number of physical servers by fourfold. Conservatively, this means hardware and energy costs are each reduced by more than 50 percent. As with consolidation, virtualization can be applied to many I&O platforms: Unix servers, storage, networking and client computing.

As many IT organizations are under intense pressure to continue to implement cost-cutting initiatives, Gartner Inc. has identified 10 actions that can reduce IT infrastructure and operations (I&O) expenses by 10 percent in 12 months, and as much as 25 percent in three years.

"I&O represents approximately 60 percent of total IT spending worldwide, so with IT budgets remaining tight, it's no wonder that I&O cost-cutting pressure continues to be intense," said Jay Pultz, vice president and distinguished analyst at Gartner. "When it comes to I&O cost reduction, there is no 'magic bullet,' but best results can be achieved by implementing as fully as possible the 10 key cost reductions we have identified."

Gartner analysts said that due to priority conflicts and resource constraints, few I&O leaders said they have implemented 50 percent or more of the total cost reduction opportunities these 10 key actions offer. However, depending on where an organization is now, fully implementing these 10 cost-cutting suggestions can provide significant savings.

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