Cost-cutting tactics start in data management and integration
1 min read
Manufacturers should be preparing now for cutting IT costs in view of the credit crunch – and data management discipline is one area that affords numerous opportunities.
So says analyst Gartner. “When aiming to optimise costs in data management and integration initiatives, it is critical to know what steps to take and where significant savings can be realised while maintaining success in these projects,” says Ted Friedman, vice president and distinguished analyst at Gartner.
“In most cases, the cost of implementing the steps will be far outweighed by the savings,” he adds.
Gartner identifies nine key areas in which CIOs can significantly reduce costs:
First, perform operational database consolidation, looking in particular at redundant databases and database workloads. Gartner makes the point that in a typical large business, costs here can range from hundreds of thousands to millions of pounds. Consolidation can take those down by 10 to 25%.
Second, optimise data integration tools licensing: again, large organisations tend to have multiple tools, and consolidation can reduce software license and maintenance costs, while also reducing the investment in acquiring and maintaining skills.
Third; capitalise on established data structures and data integration processes. Gartner suggests that most organisations are poor at data re-use, but by forcing project teams to prove that they cannot use what’s already there, that practice can be massively improved.
Fourth, perform data mart consolidation, compressing everything into a single data warehouse or a smaller set of marts. Gartner says you can expect the same types of benefits as operational database consolidation, while also reducing cost and complexity of data integration processes.
Fifth, enforce standards to foster reuse and agility.
Sixth, defer replacement of custom-coded architectures: the effort required to migrate away from custom code can be a significant expense on top of licensing for the tools – so jut hang fire for a bit.
Seventh:: explore open source licensing.
Eighth, renegotiate service contracts, and look into bundling planning and design services.
Ninth, defer low-priority and/or limited benefit projects. “In times when budgets are tightening, CIOs can assist in reducing IT spending by identifying and deferring to a later date those investments that have a low priority because of low potential return on investment,” says Friedman.
