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Total Cost of Usage: Usage-Driven IT Cost Structures Require Usage-driven Metrics

Document:                       STR-351
Date of Publication:          May 29, 2007
Number of Pages:             4
Lead Author(s):                B. Guptill, C. Burns
Price:                              $195 USD

Perspective Summary:

Enterprise IT is entering a period of broadening adoption of such non-traditional infrastructure components as Utility Computing, Services-Oriented-Architecture (SOA), Open Source, and Software-as-a-Service (SaaS).

Saugatuck research indicates that the resulting, increasingly “hybrid” nature of IT environments and usage is, in turn, changing the relevance of conventional IT cost metrics. Further, C-level executives continue focusing less on cost and ROI metrics and more on revenue and business improvement. Accordingly, acquisition decisions and RFPs should focus less on traditional cost metrics and more on costs of usage.

 
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