Gartner Warns to Cut Infrastructure Costs

By Eric Lundquist  |  Posted 2006-10-09 Print this article Print

Reporter's Notebook: Business IT needs to catch up to the consumer market, and companies will embrace virtualization to cut hardware costs, say analysts at the Gartner Symposium/ITxpo.

ORLANDO, Fla.—If this is October, it must be time to truck down to Orlando to hear warnings, opportunities and forecasts from the Gartner analysts. All those elements were present as the annual Gartner Symposium/ITxpo got underway here on Oct. 9

The big theme this year for business IT was the need for techies to get off their butts and chase the consumer market. Consumer tech has outpaced business tech by creating blogs, social network sites, podcasts, search and video. Where's business? Has it been asleep at the switch?

Yes, apparently, and the word from the Gartner oracles was to wake up and figure out how those consumer applications can be translated to the business world.

Maybe business hasn't been sleeping so much as spending the boss' money doing the wrong thing. Eight out of every 10 IT dollars spent on the enterprise are "dead dollars," which keep the lights on but don't directly contribute to a company's growth, Gartner said.

With two-thirds of IT dollars going to keeping the infrastructure running, the amount of investment available for new projects is small, and within that small amount the percentage that could be called truly game-changing is smaller still. Get your budget for maintaining your infrastructure down from 80 percent to 60 percent or risk being left in the dust, the Gartner analysts claimed.

Read the full story on eWEEK.com: Gartner Warns to Cut Infrastructure Costs

Since 1996, Eric Lundquist has been Editor in Chief of eWEEK, which includes domestic, international and online editions. As eWEEK's EIC, Lundquist oversees a staff of nearly 40 editors, reporters and Labs analysts covering product, services and companies in the high-technology community. He is a frequent speaker at industry gatherings and user events and sits on numerous advisory boards. Eric writes the popular weekly column, 'Up Front,' and he is a confidant of eWEEK's Spencer F. Katt gossip columnist.

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