CIOs are constantly required to do more with less, even as technology plays an increasing role in the success of almost every business. This combination of cost pressure and technology-asbusiness-driver makes it more important than ever to focus IT resources on innovation rather than maintaining infrastructure.
Yet many IT groups spend 75% or more of their resources on maintenance and infrastructure, leaving less than a quarter of the IT budget for innovation. Research has shown that outsourcing IT infrastructure and routine administrative tasks can lead to a significant increase in innovation-focused IT activity.
This brief explores how cost efficiency can be achieved via the different elements of a hybrid IT infrastructure outsourcing approach. The fundamental building blocks of IT — data center facilities and operations, compute and storage platforms, network and connectivity services, infrastructure management, security services, and applications — can all be outsourced individually or as a whole. IT resources thus freed can be re-focused to pursue innovation at the business application level.
Because IT organizations spend so much budget to “keep the lights on” and comparatively less on innovation activities, even a relatively small percentage reduction in infrastructure costs can make a dramatic increase in resources available for innovation.
As Figure 1 shows, small IT infrastructure optimizations can, in some cases, double the IT activities being applied to innovation. “The magic of outsourcing is giving us the ability to focus on those areas where we can be truly great,” points out Robert Isherwood, CTO at ad agency 22squared. (1)
Studies clearly demonstrate that outsourcing infrastructure reduces cost: a recent survey of 550 global IT leaders revealed that companies save 11% of the IT budget on average and expect that to increase to 19% within two years. (2)
However, because no two organizations are identical, each business needs to consider key questions about exactly what to outsource, where to start, and how to combine the various options (data center colocation, managed services, and cloud computing) to optimize IT infrastructure delivery and maximize the savings that can be plowed into innovation.
Figure 1: Hybrid IT Strategy Can Double IT Innovation
By outsourcing a third of infrastructure and related routine administrative tasks, IT can double the amount of time its internal expert staff spends on delivering and implementing innovative products and offerings. Source: Converging the Datacenter Infrastructure: Why, How, So What? IDC White Paper, May 2012
In today’s intensely competitive business environment, focusing more of your finite IT resources on innovation is critical. By using outsourcing to achieve savings in IT infrastructure, IT groups can apply more of the IT budget to innovation.
Even a relatively small percentage reduction in infrastructure cost can dramatically increase the funding available for new applications and other business-critical initiatives that enable the organization’s overall success.
As IT groups face pressure to do more with less, outsourcing infrastructure creates savings that can be reinvested in innovation.
Even a small percentage reduction in IT infrastructure costs can dramatically increase the funding available for innovating new applications or other initiatives critical to business success.
No two organizations are identical, so each should consider how to optimize the mix of data center colocation, managed services, and cloud computing services to achieve the greatest savings and business benefit.
CenturyLink’s Hybrid Infrastructure solutions infuse agility into IT infrastructure, whether your business is challenged with controlling costs, managing performance, or scaling and expanding into new markets.
CenturyLink is recognized as the No. 2 retail colocation provider, with an extensive global footprint that includes more than 55 state-of-the-art data centers across North America, Europe, and Asia, with over two million square feet of raised floor space.
CenturyLink Business delivers innovative managed services for global businesses on virtual, dedicated and colocation platforms. It is a global leader in cloud infrastructure and hosted IT solutions for enterprise customers. Parent company CenturyLink, Inc. is the third largest telecommunications company in the United States, and empowers CenturyLink Business with its high-quality advanced fiber optic network. Headquartered in Monroe, LA, CenturyLink is an S&P 500 company and is included among the Fortune 500 list of America’s largest corporations.