Meeting CIO’s Top IT Priorities

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MeetingCIO’s Top IT

Priorities



“With an increasinglycompetitive ecosystem,IT must improve if it isto remain relevant.

Improve IT’s on-timeand on-budgetperformance was the#1 IT managementpriority (...) and ITneeds to improve itsdelivery capability and

alignment with businessprocesses.” Forrester Research Inc.1

1 ”2013 IT Budget Planning Guide For CIOs”, Forrester Research, Inc., December 21, 2012



3Meeting CIO’s Top IT Priorities

Sumir KarayiCEO

Reducing IT running costsRunning IT efcientlyis being sought bybusiness leaders whoare demanding that CIOsmust reduce costs

Businesses are demanding that IT isrun more efficiently. We at 1E havebelieved this for years and all oursolutions are focused around this onekey mission. The great thing today isthat top analysts’ research shows thatCIOs have got the message.

Forrester Research Inc.’s ForrsightsBudgets and Priorities Tracker Survey,“2013 IT Budget Planning Guide forCIOs,” states that IT departments inorganizations are spending too muchon just maintaining the status quo. Thereport recommends that CIOs shouldlook to improve the effectivenessand efficiency of IT to generate costreductions and improve competitiveadvantage.

To optimize spend and improveefficiency, Forrester recommendsthat CIOs should start by looking atthe IT MOOSE budget, (Maintenance,On-Going Operations, Systems and

Equipment – the expense needed tokeep an IT organization running).

In the last quarter of 2012 Budgets andPriorities Tracker survey, Forresterfound that IT decision makers wereallocating nearly half of their IT budgetto ongoing operations and maintenanceand nearly a quarter on expandingcurrent capacity amounting to a total of71.4% being spent to support businessgrowth which leaves less than thirtypercent for new IT initiatives andprojects.

By actively reducing the cost ofsupporting past IT expenditure,businesses can free up budget andresources to reinvest in innovation.Many of the 3,500 senior IT executivesand technology decision makersaround the world who were surveyedalso agreed with the report’s findings.

Why hasn’t there been massive

interest in tackling these challenges

to date?

CIOs have long been tasked with doingmore with less without sacrificing

quality, security or business goals.Typical IT cost cutting measures focuson the obvious such as outsourcing,service and hardware consolidation,

tougher contract negotiations,higher demands on employees,greater purchasing controls, andmore. CIOs are well aware that aproportion of every IT budget is wastedon technology that is not used orrequired, and/ or delivers no value tothe organization but they don’t alwaysknow how to change the status quowithout risk.

Many corporations still fail to considerIT cost reduction as a full-timeinitiative and in addition, they havefound that this approach has led todecreases in productivity with lessresources and money available to focuson new projects and initiatives, notmore.

“IT budget benchmarksenable organizationsto gauge their IT

spending relative to theirindustry peers.”

FORRESTER RESEARCH INC.*

Looking at automation to eliminatewaste, rather than cost reduction inthe traditional way of postponing orcancelling other projects, can havea transformational effect on theproportion of a budget available forgrowth initiatives while simultaneouslyenabling enhanced IT MOOSE delivery.

That’s where we come in.

At 1E, we believe that efficiency is thenext strategic focus that the businesswill force on to IT. This new disciplinewill bring the concept of 100 percentautomation, getting rid of everymundane and unnecessary labor-intensive steps in high cost processes.

Using best practice benchmarksacross key areas of IT MOOSE suchas hardware, software, effort andenergy 1E, through its ActiveEfficiencyplatform, enables organizations to

transform IT waste into free resourcesand money to invest in innovation andcreate competitive advantage, keyindices for success.

United StatesTel: 1 866 592 4214

United KingdomTel: +44 20 8326 3880

FranceTel: +33 1 56 60 52 35

IndiaTel: +91 120 402 4000

Webwww.1e.com

[email protected]

*Forrester Research Inc.Forrsights Budgetsand Priorities Tracker Survey,by Craig SymonS 2013 IT Budget PlanningGuide for CIOs,



4 Meeting CIO’s Top IT Priorities

Where can cost reduction happen?

In the last quarter of 2012 Budgets and Priorities Tracker survey,Forrester found, the proportion of the budget set aside for IT MOOSE

is 71.4%. Forrester recommends that companies seek to focus on thisbudget as it is consistent year on year, being unaffected by new projects;

it is also consistent between companies within an industry and that lessIT MOOSE is generally more desirable - CIOs can concentrate on the

portion of the IT budget they want to reduce ie. ongoing operations andmaintenance rather than affect new initiatives and projects.

French

multinational

corporation Saint-

Gobain cut the

cost of rolling

out its systems

management

platform by 97%

with 1E Nomad

CASE STUDY

Saint-Gobain needed an efcient way to deploy software patches and upgrades

to 100,000 desktops across 6000 branch ofces.

The company was implementing the Microsoft Systems Management Platformto create better collaboration and improve productivity. By implementing

1E Nomad it eliminated the need for branch servers (due to peer-to-peer

distribution) or desk-side visits (through completely automating the patch

and upgrade tasks) which further reduced the existing server footprint and

administrative overheads.

Now the company has thirty times fewer servers than was projected at the

start of its consolidation project.

In 2013, approximately what percentange of yourbudget will to go to the following?

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

M e a n

Enterprise (1,000 or more employees)

Base = 2037 IT Decision Makers from Enterprise FirmsSource = Forrsights Budgets And Priorities Tracker Survey, Q4 2012

2013 replacement/expansion of capacityto support business growth

2013 ongoing operations and maintenance

2013 new IT initiatives and projects




Getting the priorities right

Looking forwards, CIOs from both sides of the Atlantic have similar priorities

when it comes to new IT initiatives that they want to invest in over the next12 month period. Lowering operational costs to free up money and improve

IT’s on-time and on budget performance are certainly attainable if, insteadof looking at quick wins, CIOs focus less on tactical campaigns and employ

disciplines and IT management strategies that will continuously optimizetheir IT investments.

For example, run as a continuous process, Software License Optimizationwill not only right-size the number of licenses within a business but, by

initiating regular reclaims, it enables applications to be reassigned and

eliminates the need to buy more licenses unnecessarily.Similarly, having a future-proofed automated desktop suite in place for OS

and System Center upgrades, accelerates software distribution and ensureslong-term simplied and efcient systems administration.

UNUM’s IT

Efciency initiatives

bring early

cost reductions

with continuous

automated

processes thanks to

1E’s desktop total

automation suite

Lower IT’s operational costs tofree up money for new initiative

Increase IT capacity to drivebusiness innovations

Increase IT on-time andon-budget performance

Increase the scope of IT’s centralizedor shared services to improve efficiency

Improve business processes

70%

68%

64%

61%

60%

NORTH AMERICA (N=715)

Increase the scope of IT’s centralized orshared services to improve efficiency

Improve IT’s on-time andon-budget performance

Lower IT’s operational costs to free upmoney for new initiative

Improve business processes

Increase IT capacity/resources to drivebusiness innovations

69%

68%

66%

62%

55%

EUROPE (N=357)

Base = 1072NA & EU IT Executives and Technology decision-makers from enterprise firmsSource = Forrsights Budgets And Priorities Tracker Survey, Q4 2012

Which of the following IT managementinitiatives is your IT organization prioritizing overthe next 12 months?

CASE STUDY

As one of the world’s largest employee benets companies, employing 10,000

people, Unum has a multitude of desktop applications it needs to manage.

Users can nd and download applications themselves from Shopping,reducing helpdesk calls. AppClarity gives the company visibility of all

software licenses and the ability to automatically reclaim unused and rogue

applications - in less than two months it identied $326,478 of cost savings.



“Traditional SAM isfailing enterprises(...) whereasSoftware License

Optimizationis enhancingcompliancewhile reducing

wasteful spendon superuouslicense capacity”

1 Introducing Software License Optimization , Forrester Research Inc. September 29, 2011




Software license optimization rapidly reduces costs

As 16% of an organization’s IT budget is spent on software, identifying theusage of software licenses is critical not only for vendor compliance but

also to allow organizations to reduce spending on unnecessary and unusedsoftware licenses. Software licensing represents a major cost, administrative

burden and is a hidden license liability for organizations – often, it consumesfar more of the IT budget than necessary.

Research* has found that there is more than $400 per PC of unnecessarysoftware that could be reclaimed. Using the right tools, in conjunction with

that understanding of entitlement and usage rights to analyze all types ofsoftware deployments and determine usage enables administrators to get

an instant picture of the nancial impact of unused software and unlicensedapplications. This in turn gives them the ability to reclaim what is unused to

prepare for true-ups and vendor audits and remove the risk of being ned.

Using 1E AppClarity

Sasol reclaims

unused applications

to become

compliant and

save money

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

M e a n

Enterprise (1,000 or more employees)

Other

As a service offerings, including software-as-a-service, infrastructure-as-a-service,platform-as-a-service

Third-party IT serivces

Telecommunications services

Hardware infrastructure

Software costs

Contractors

Full-time IT staff

CASE STUDY

Sasol wanted to optimize how software licenses were used and managed and

get true visibility into applications usage to make tangible savings and reduce

license liability.

The company had thousands of different applications deployed and wanted to

ensure that its license liability was at zero.

Within a month the company saw savings of South African Rand (ZAR)

1.8 million ($260,000) which accounts for 3,000 reclaimed licenses. Thisrepresents a potential overall saving of ZAR 82m ($9.4 million) if everything

that is unused is reclaimed.

In 2013, what percentage of your budget will go to eachof the following categories?

* Software Efciency Report 2011, Opinion Matters, IAITAM, APRIL 2011



GET IN TOUCH WITH USUnited StatesTel: 1 866 592 4214

United KingdomTel: +44 20 8326 3880

FranceTel: +33 1 56 60 52 35

IndiaTel: +91 120 402 4000

Webwww.1e.com

[email protected]

ABOUT 1E

1E is the pioneer and global leader in ActiveEfciency solutions. 1E’s mission is to

identify unused IT, help remove it and optimize everything else. 1E ActiveEfciency

solutions help reduce servers, network bandwidth constraints, software licenses and

energy consumption.

Our headquarters are in London and New York and we have ofces in Paris and New Delhi. Withmore than 20 million licenses deployed worldwide, 1,600 organizations in 42 countries trust us tohelp them to work efciently, productively and sustainably. To date, our customers make $1.4 billionin efciency savings. This includes $800m in energy costs alone and a reduction in CO2 emissions of6.4 million tonnes.

Our customers are drawn from public and private sectors across the world and include AT&T, VerizonWireless, Dell, ING, Nestlé, BNP Paribas, Ford Motor Company, the US Department of VeteransAffairs and the UK Department of Work and Pensions. Our largest customers have more than 300,000seats, our smallest just 500.

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Meeting CIO’s Top IT Priorities