Flat growth, what wimps! One of my CIO clients recently told me he could cut 10% each year for the next few years and not skip a beat. He would use that to fund innovation investments and not have to go with tin-cup to his CFO. He has bought his ticket to New Florence.
Want 10, 20, 30% % savings in IT budgets? Here is a list I presented at Software 2006 of top 10 IT spend items with the most "empty calories"
• Software Vendor Annual Maintenance contracts
• Outsource contracts signed more than 18 months ago
• Software “shelfware”
• Telecom “shelfware” - unused phone, T1 etc lines
• Lack of offshore shared services across client specific development centers
• Telecom “fringe” services – WI-FI hotspot charges, international mobile roaming etc
• Lack of “hardware as a service”
• Everything with cheaper building blocks - x86, open source, global labor - but finished product still pricey
• Staff aligned more with Accenture and EDS thinking than with 37Signals and Google
Delight your CFO and give him 5% back for a change - and still have plenty left for innovation projects. If that is non-growth, bring it on.
No Nick, it's not the end of corporate computing. It's the dawn of a new computing paradigm.
Update: I added a few words to clarify the categories
Further update: I was delighted to read this InfoWorld series of stories about "heroic hacks" - innovations and workarounds from creative IT staff. Every CIO deserves a few - or many - such heroes.