Tuesday, October 20, 2009

Next Gen to Meet New Normal in the Post-Recession Economy

The global economic retrenchment over the past 18 months has been accompanied by an unprecedented contraction in the availability of capital. Faced with limited capital to fuel business operations and fund business investments, business and IT leaders have slashed expenses and limited capital purchases. With the economy now poised to begin a very modest, multiyear recovery, IDC expects these "new normal" economic operating practices will continue to shape key decisions about IT operations and investments for years to come.

At the same time as these "new normal" economic operating practices are taking hold, the IT technology and platforms seem poised for a period of significant change. After an extended period of perfecting and refining the systems, architectures, and technologies that were on the table at the end of the last recession, IDC expects the next few years will see considerable IT platform change as companies are drawn toward the benefits of next-generation datacenters, new software offerings, and off-premise computing options.

As the potential of "next generation" IT comes up against "new normal" spending practices, IDC believes five management practices will emerge at the core of IT organization initiatives.

* Cost and Funding Management: IT organizations will increasingly be forced to develop cost profiles, including the business value of solutions, to support investment decisions. This will not be an easy or pleasant task, and has been a requirement that has dogged IT organizations for years.

* Sourcing and Platform Strategies: As new options become available to achieve an IT or business objective, IT organizations will have more options to experiment, innovate, and change but will also have to justify their choices more conclusively.

* Equipment Leasing and Software Financing: Commercial organizations will return to IT leasing and financing as a means of bolstering their access to IT resources.

* Life Cycle Management: IT organizations have already extended the planned deployment of many major systems, but they still need to develop the tools and management processes to quantify the underlying cost implications of these longer asset lifecycle models.

* IT Financial Management Tools: As IT platforms and business processes increasingly move toward a mix of in-house and third-party provisioning, the need for IT financial management software, tools, and best practices to better enable IT organization operational decision-making will become apparent.

More information on the IT industry can be found at www.SupportIndustry.com

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