Asset lifecycle management creates significant value for an enterprise by reducing the total cost of ownership of the assets and by increasing asset productivity. On average, enterprises realise a 15% to 20% reduction in the total cost of asset management, while experiencing a 15% to 20% increase in productivity.
This is according to John Thomas, Altiris general manager at independent IT solutions provider First Technology, who says that as companies search for ways to cut costs, increase IT resource productivity, and better utilise existing investments, it is the IT departments that are being pressured to do more with less.
"The renewed focus on IT has helped to elevate the role of the IT department from a custodian of the business to a strategic partner concentrated on aligning and supporting corporate initiatives. To maximise the value of IT assets, IT divisions must increase asset availability levels to supply end-users with an environment that breeds productivity," he says.
Thomas stresses that IT departments must be able to answer a number of questions:
* Do you fully understand the asset configuration, location and relationships within your organisation`s infrastructure?
* Do you know how your assets are being used?
* How effective are your assets in supporting corporate objectives?
* Do you know the total cost of IT assets, including procurement, maintenance, end-user support, depreciation and disposal costs?
* Can you do more to ensure the availability of your IT assets?
He says that when examining asset costs, it is important to note the distinction between cost avoidance and cost reduction.
"Cost avoidance is the effective use of asset lifecycle management software to lower costs. Avoiding a late lease return fee is an example of cost avoidance. Consuming fewer labour hours to resolve a printer driver problem is an example of cost reduction," he explains.
Unplanned costs occur in several areas, such as when paying for unnecessary software licences; paying for maintenance or warranty contracts when you no longer own the assets; and purchasing new equipment when you have ready-to-deploy equipment in stock.
Additional costs are incurred when companies pay lease residual fees for not being able to locate and return the leased equipment; returning leased equipment with non-harvested add-ons (software and memory) that you actually own; and planning for forecasts, budgets, administration and audits with manually prepared and inaccurate information.
Further savings in asset lifecycle management come from reducing the cost of the processes around the asset.
"Typically these expenses are three to four times the cost of the asset and tend to go unmanaged. These include requisitioning assets; acquiring assets; managing asset contracts, asset utilisation and asset service level agreements (SLAs)," Thomas says.
He points out that by optimising these processes, an enterprise can save 10% to 15% of the total asset cost. The total cost savings average between 15% and 20% of the total asset cost when combined with cost avoidance.
First Technology provides a number of services that educate customers about software licensing, which ensures that each customer understands the potential risk involved so that they are prepared in advance.
"We report on what is being used and how frequently it is being used to determine what needs to be purchased, and we also report on the abuse of corporate equipment such as running unlicensed software or games. We advise customers on how best to utilise their software by tracking usage of installed software to determine if users need it or if they can use a less expensive version or package. This is complemented by volume licence management advice to ensure our customers` individual licensing needs are addressed," he explains.
"We understand the complexities associated with implementing a solution designed to manage the entire asset lifecycle. The solution extends functionality to help guide customers as they continue to mature and align organisational resources to industry standards and best practices. We address this with an outsource service that incorporates active asset management and licence compliance services," Thomas adds.
First Technology helps organisations maximise existing IT investments through active asset management, thereby eliminating unnecessary software and hardware costs; managing contracts and entitlements; aligning service resources with IT Infrastructure Library (ITIL) standards; and realising reduced asset total cost of ownership (TCO).
The business benefits are:
* Actively tracking IT asset location, configuration and deployed versions.
* Actively tracking software and hardware usage for reallocation and contract negotiation.
* Real-time diagnostic information to enable better business decision-making processes that simplify implementation through out-of-box ITIL asset and service management processes.
* Accurate online reports to help solve immediate problems while building a roadmap for the future.
* A Web-based solution from the ground up.
* Accurate reports within hours of implementation.
* A single repository to enforce data integrity and accuracy across the organisation.
* A comprehensive and affordable solution focused on quick ROI.
"With all major software vendors on the war path to find extra revenue, there is an increase in anti-piracy drives. Vendors want your money and they are not shy to come and get it. This puts pressure on clients to ensure they have a sound software management strategy and they monitor what is being utilised.
"Control in a medium to large organisation can be a nightmare. First Technology licence compliance services can ensure that our clients have all the information available to make informed decisions and act on possible licensing threats," Thomas concludes.
First Technology is one of SA`s largest, independent IT solutions providers, offering customers solutions and services that maximise business productivity, reduce the risk associated with deploying new technologies and minimise the total cost of IT ownership. The company has fully-fledged branches in every major business node across SA and maintains one of the largest teams of highly skilled technical personnel in the country.
Altiris
Altiris is a pioneer of IT lifecycle management software that helps organisations easily manage desktops, notebooks, thin clients, handhelds, industry-standard servers, and heterogeneous software including Windows, Linux and Unix. Altiris automates and simplifies IT projects throughout the life of an asset to help reduce the cost and complexity of management. Altiris client and mobile, server and asset management solutions natively integrate via a common Web-based console and extensible repository. For more information, visit www.altiris.com.
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