The key challenges for most large companies can be related to the IT infrastructure, application development, IT finance or the lack of information available for business- and senior management.

IT Infrastructure

Optimizing the IT infrastructure, and thereby reducing or avoiding costs, is always a focus area. With the right focus, you can achieve the following advantage:

  • Understand IT infrastructure cost drivers in order to optimize
  • Explain deviations in IT infrastructure costs compared to budget or historical trends
  • Optimize system parameters to reduce cost or improve quality of service
  • Plan IT infrastructure capacity needs based on trends
  • Understand technical changes made by the outsourcer and their impact on costs
  • Right sizing of infrastructure to real needs
  • Identify unused capacity for decommissioning
  • Software license optimization


If the IT organization cannot relate IT operational costs to Application Development activities, and it furthermore can’t explain to the business why costs are increasing or how the cost increases are related to applications, you have a major challenge. By addressing this challenge the following advantages can be achieved:

  • Identify candidates for tuning based on contribution to infrastructure cost
  • Identify trends in capacity and performance and plan for change
  • Understand the capacity and performance impact of application changes
  • Correctly size infrastructure for new deployments
  • Explain infrastructure costs to the business

IT Finance

IT costs appear to be out of control and IT cannot provide transparency into cost drivers so the IT organization can better budget and manage costs. These advantages can be achieved having the right focus:

  • Follow up on infrastructure costs as they are incurred rather than when the invoice arrives
  • Explain changing infrastructure costs in terms of business or technical activities
  • Allocate IT costs out to individual business units (chargeback or showback)
  • Validate an invoice from an outsourcer and explain deviations
  • Negotiate better outsourcer agreements based on knowledge of real capacity needs and optimization potential

Business and Senior Management

The business is not accountable for the IT costs that they engender. The business makes key decisions without understanding the IT cost implications. Therefore, it makes key decisions without having the ability to correctly allocate cost to the business in a charge back or show back model, thereby providing cost accountability.

Making fact-based decisions by providing insight into the IT cost implications of business decisions would gives these advantages:

  • You will understand how business initiatives and behavior impact IT infrastructure costs
  • You will have a basis for asking better questions and making more informed decisions, and
  • Be able to follow up on infrastructure cost drivers versus KPIs and understand deviations
  • You will elevate from assumptions, estimates and guess work. The transparency achieved from using one source data provides fact-based presentations to business and CEO – one truth at all levels.