|“What we’re seeing is CIOs are working very hard to reduce the cost of their operations on a per-transaction basis. They’ve done a lot of that with virtualization and data-center consolidation.”
Mark McDonald, as quoted in IT After The Recession
IT demand is very strong. Companies have had to work harder than ever to make money in this environment and also to be able to drive the types of innovation that will keep customers interested in new things they’re offering. But CIOs are meeting that demand with existing IT assets rather than buying new assets.
In other words, they’re managing the IT MOOSE and they like their MOOSE lean.
Mark points out that the number of IT transactions are increasing — but not all those transactions can be directly tied to revenue. (That reminds me. I need to log on and check my bank balance.) As the number of transactions to support $1 in revenue continue to go up, Mark predicts that CIOs will be taking a hard look at infrastructure again.
The question is…whose infrastructure will they be looking at? Their own — or Amazon’s or EMC’s or some other cloud infrastructure-as-a-service (IaaS) provider?