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In grip of downturn, leaders are turning to better technology
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11/03/2009
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A surprising 38% of IT directors in a range of industries around the world view the current economic climate as an opportunity to restructure their technology environments for the future. That’s chief among the findings of research conducted by HP into how organisations are addressing the challenges presented by the current economic downturn.
“In every economic cycle, there are winners and there are losers,” comments Ann Livermore, executive vice president, Technology Solutions Group, HP. “During an economic downturn the stakes are higher – some organisations use this time to reduce cost and build competitive advantage,” she adds.
Other key numbers include: 69% feel that it is now more important than ever to get good alignment between technology and the organisation’s business goals; and 21% say the economic climate has made them more likely to move away from mainframes.
Also, 56% say they are considering server and storage consolidation, 49% are looking at virtualisation, 45% want application modernisation or consolidation and 41% are going for automation projects. They plan to pay for these using a combination of strategies, primarily cash (59%) followed by financing (27%).
HP’s answer is a mix of products, solutions and services that enable organisations to address short-term cost reductions, while also laying the groundwork to exit the downturn stronger and more competitive.
It gives the example of HP StorageWorks Storage-Area Network (SAN) Virtualisation Solutions, which can help simplify the provisioning, management and optimisation of virtualised server and storage environments.
Similarly, HP’s enhanced Data Protector software and services provide one solution for all physical and virtual environments, delivering a claimed potential 70% cost savings.
And to help companies prioritise technology investments, HP’s Applications Management Services portfolio is now offering an option of tiered levels, through EDS – lowering the cost of running less-critical applications while maintaining the highest service levels for critical applications.
“Winning CIOs are focused on both strategic cost reductions and supporting long-term business growth,” says Livermore.
And she adds: “It’s not about spending more: best-in-class IT organisations spend about half as much as the average company on technology as a percentage of revenue. Instead, they strategically spend and prioritise technology investments.”
HP’s new hardware, software and services allow organisations to change how they produce, distribute and consume technology resources by, says Livermore – by standardising, optimising and automating technology.
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Author
Brian Tinham
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