Comments on: Increasing IT Infrastructure Costs Reducing Ability To Change Business http://www.galorath.com/wp/increasing-it-infrastructure-costs-reducing-ability-to-change-business.php Estimation . Analysis . Planning . Control Thu, 09 Feb 2012 14:51:09 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Lee http://www.galorath.com/wp/increasing-it-infrastructure-costs-reducing-ability-to-change-business.php/comment-page-1#comment-31 Lee Mon, 22 Sep 2008 21:11:30 +0000 http://www.galorath.com/wp/increasing-it-infrastructure-costs-reducing-ability-to-change-business.php#comment-31 It could be that IT costs are rising proportionately because software costs are diminishing. That would be a 'helpful' trend in that cost savings are being realized in one segment. IT infrastructure also has strategic implications in and of itself, much as excellent roads and bridges do. That is why Microsoft, Google, Amazon, etc are engaged in major build outs because their IT infrastructure equals their ability to execute. Though HP went the other way, reducing their data centers to just a few. So if you are in the business of technology, then technological infrastructure is a good thing, but if you are in another business, then maybe you want to reduce that overhead. As for those in the business of technology, a recent trade article mentioned that Bear Stearns' and Lehman's takeover prices were largely accounted for by their data centers' value. They had built centers optimized for the high speed execution that wall street values. At least, it did :) It could be that IT costs are rising proportionately because software costs are diminishing. That would be a ‘helpful’ trend in that cost savings are being realized in one segment. IT infrastructure also has strategic implications in and of itself, much as excellent roads and bridges do. That is why Microsoft, Google, Amazon, etc are engaged in major build outs because their IT infrastructure equals their ability to execute. Though HP went the other way, reducing their data centers to just a few. So if you are in the business of technology, then technological infrastructure is a good thing, but if you are in another business, then maybe you want to reduce that overhead.

As for those in the business of technology, a recent trade article mentioned that Bear Stearns’ and Lehman’s takeover prices were largely accounted for by their data centers’ value. They had built centers optimized for the high speed execution that wall street values. At least, it did :)

]]>