Top 4 Reasons to Rationalize your IT Tools
According to experts, a company will typically spend upwards of 75 – 80% of their IT budgets on simply just managing various IT tools in their repository. Further, it is estimated that approximately 70% of all companies lack adequate systematic documentation to help keep track of tool versions in their overall portfolios.
The number of IT monitor tools have grown substantially along with the growth of technology and digital initiatives, creating a massive portfolio of tools….or IT tool sprawl.
Here are the top 4 reasons why your company should quickly aim to tame its IT sprawl and rationalize their IT tools portfolio.
#1: Controlling IT Tool Sprawl
Within every IT department of every company there is an overabundance of IT tools being purchased to perform one or multiple tasks. For these companies, there is oftentimes very little accountability as to:
- What tools have been purchased
- When the tools were purchased
- Do the tools meet the demands of the business
- Are there multiple tools that essentially perform the same task.
Companies should tame IT tool sprawl in a systematic way. They should first identify what tools are needed and evaluate the relevance of tools to the business. IT tools divested from the portfolio can reduce overall IT costs, saving thousands or possibly even millions of dollars.
#2: Security Risk Exposure from Legacy IT Tools
A company with a systematic approach for tracking IT tools drastically reduces their chances of dealing with potential threats. In addition to threat mitigation, replacing legacy tools with current industry standard tools can provide much needed enhanced security features that legacy tools may be lacking.
#3 Create Standardization & Better Business Processes
Some companies choose to tackle IT tool sprawl through special projects to identify outdated tools from mandatory tools. These projects can help managers to outline an IT tool standardization practice. Organizations can develop effective systems that can identify the utility of a tool, performance and associated cost. These systems aid CIOs and IT leaders in making business decisions to justify need and costs for new tools or discontinuing current tools.
#4 IT Customer & Vendor Relations
Managing tool sprawl can better position companies when making purchase decisions for IT tools and products. With a standardized evaluation of IT tools, companies can gain deeper insights into the pros and cons of their IT tools and products. Without empirical data to manage their IT tool portfolio, some CIOs and IT leaders believe they’re guessing at the capabilities and coverage of their tools
With insight in hand, CIOs can better engage their IT vendors that better optimizes their product portfolio, ranging from licenses, price, feature options and service level agreements. Fiscally sound decisions on their tools position IT as a driver and partner for the business, rather than a cost center.
In a nutshell, IT tools rationalization allows for organizations to identify capital for reinvestment.
Find out how RedMonocle can help your IT organization systematically tame IT tool sprawl.