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Complex IT Means Lower Profits, Stunted Growth

By Craig Galbraith
July 10, 2014 - News

Results of a new study reveal that IT complexity leads to lower profits and puts up barriers to business growth.

In a new white paper sponsored by Oracle, the researchers at IDC report companies that reduced IT complexity were able to save an average of $83 million per year. Businesses that took part in the study saved more than $3,600 per user by simplifying IT. The average company studied has approximately 23,000 IT users. They also achieved benefits such as faster time to market, better customer service, and the ability to shift IT staff to more strategic projects.

So what are these complexities? IDC says IT challenges include increases in operational costs, reduced staff productivity and reduced ability to provide high levels of service to the business. Less innovation, reduced customer and user satisfaction, and less competitive advantage often result.

Efforts to simplify IT include migrating to the cloud, investing in engineered systems, and replacing legacy systems with modern applications. Most participating organizations found that to truly simplify IT, they needed to replace their outdated infrastructure with a simpler, consolidated, modern foundation that was better equipped to address today's demands.

"Many companies today are overwhelmed by the cost and competitive disadvantage that IT complexity can create," said IDC's group VP, Software Business Solutions, Michael Fauscette. "By simplifying their IT infrastructure, organizations can devote more of their focus and resources to delivering innovation, driving productivity and keeping customers happy."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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