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Selling, General and Administrative (SG&A) costs
Up to one-half of total Selling, General and Administrative (SG&A) costs of an organization can come from IT. Organizations suffer when revenues cannot keep up with these rising expenses.
Global competitive impact is lacking
North America is forecast to see a mere 2.5 percent in annual GDP growth through 2012, compared to 7.9 percent for the Asia-Pacific region.
What is "IT agility"?
IT agility is the capability of organizations to anticipate and respond to business change and maintain IT costs to within 15 percent of revenue change.
How do you achieve IT agility?
By exploiting new Service Delivery Models to link business performance with IT-driven initiatives, transforming IT function into a business partner.
Top Performing Companies
Only 20 percent of top-performing organizations rank software infrastructure innovation, such as integration middleware, as a "highly effective" way to meet goals.
Top Performing Companies
80 percent of top-performing organizations say that technical-infrastructure virtualization with storage, servers and other needs is highly effective.
What The Average Performers Say
Only 33 percent of average performing organizations believe that cloud computing and other on-demand infrastructure sourcing is a highly effective way to meet goals.
What The Top Performers Say
67 percent of top-performing organizations believe that cloud computing/on-demand infrastructure sourcing is highly effective.
How Else Do Top Performers Contain IT Costs?
1. "On-demand" application-sourcing such as SaaS (cited by 50 percent of top performers) 2. Business-process outsourcing (cited by 50 percent of the top performers).
Key Takeaways:
1. Tech-infrastructure virtualization is the most consistently effective way to drive agility. It is two to three times more effective than open-tech standards, app-architecture innovation or software-infrastructure innovation.2. Scalable, pay-for-use systems help IT move from being considered "overhead" to being a valued business player in the organization.3. On-demand tech helps IT stabilize costs/capacity for organizations, while increasing time-to-market and other business goals.
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