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5 Common Black Holes Swallowing Up the IT Budget

How can IT departments balance budgetary restrictions against accelerating demand for new technologies and premium customer service? Answer: effective IT asset management (ITAM). In a blog for Information Age, Ben Rossi relays the advice of Express Matrix’s Martin Callinan. Callinan identifies five types of budgetary drain caused by technologies that are supposed to enhance productivity.

1. Buy-In Vanity

IT “vanity purchases” can cause drain. But when software or hardware installs are not utilized to their full potential, it’s just as likely that untrained employees are the cause. To remedy the issue, employees should be instructed on how to maximize available technologies.

2. Virtual Sprawl

When virtual machines (VMs) go unmanaged, they tend to reproduce quickly, sometimes showing up only to be abandoned and then later replicated. That is why proper tracking is essential to corralling the unnecessary spread of VMs.

3. License Hogs

To avoid the black holes of compliance risk and unnecessary license spend, ensure that mobile workers and hot-desk users are not camping on two similar devices simultaneously.

4. Audit Impulse Buying

Audit impulse buying is, in part, a matter of software management:

…many organisations do not have full visibility of…assets, [and this]can have a myriad of implications, including the risk of non-compliance. As a result, some…end up “panic buying” licences when faced with an audit…

Others rely on the assumption of vendor compliance or err on the side of caution when faced with audits. Callinan recommends being prepared by getting a handle on usage patterns.

5. Forgotten IT

Retaining assets in the midst of employee turnover is a simple way to avoid redundant software licensing. It only takes a little snooping to understand what the previous employee had, and whether or not that information is worth being preserved.

You can read the full blog post at:

About Eric Anderson

Eric Anderson is a staff writer for CAI's Accelerating IT Success. He is an intern at Computer Aid Inc., pursuing his master's degree in communications at Penn State University.

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