IT execs ready to spend on BTO
A growing number of corporate IT operations say that
business technology optimization (BTO) is an optimal approach to managing organizational IT complexity and inefficiency, according to a survey of 240 CIOs and CTOs from large U.S. enterprises. Analysts said the IT move to BTO is moving more swiftly than expected.
''I was surprised by the swiftness that CIOs are
flocking to IT governance as a goal, and the amount they appear to be willing to
spend on putting IT governance into effect in their organizations,'' Data
Gardner, senior analyst for application infrastructure and software platforms at
Boston-based Yankee Group, told ADT
A majority of respondents believed that between 15% and 20% of corporate
applications budgets could be cut using BTO tools and techniques, thus freeing
significant resources for new projects and systems. The survey found that a
current lack of BTO use for business applications and maintenance is forcing
corporate IT operations to spend significant sums on financial and human
resources. According to the survey results, respondents agreed that added
strategic spending on application management, IT governance and general BTO
tools, would decrease total spending on total cost of ownership, or TCO --
opening the opportunity for a new wave of IT investment and a better-run IT
Gardner predicted that growing IT budgets over the next few years will
disproportionately favor spending on management, and IT governance products and
services. Gardner said Yankee Group believes that over that time, the definition
of BTO will be expanded to further improve collaboration between IT and business
planners, as well as optimization around integration activities.
The survey results showing strong interest in BTO for the IT executive level
bodes well for the future of business technology optimization. Yankee analysts
did say that CEO-level executives must also be convinced to pay more attention
to the need for BTO tools and technologies.
Gardner said the primary value of BTO ''is lowering costs and
time-to-value for business applications, while creating the means for a virtuous
adoption cycle to IT productivity enhancement and investment.'' Thus, BTO can
validate future IT and BTO spending on projects to produce business
Mike Bucken is former Editor-in-Chief of Application Development Trends magazine.