Dell CEO Michael Dell wants to fight inefficiency and greatly reduce IT spend by pursuing a concept he calls the efficient enterprise.
During his keynote address, at Oracle OpenWorld, in San Francisco, this week, Dell said he aims to cut $200 billion in IT spending. “The terms standardise, simplify and automate, are core to this ideal.”
He said his company's strategy is to reduce this spending by helping enterprises maximise their technology. “Right now, there is an opportunity for businesses to reduce inefficiency and make their technology work for them.”
According to him, $1.2 trillion is spent on IT infrastructure annually - $400 billion on hardware and related software, and a further $800 billion on labour and services. Sixty percent of resources are used to merely “keep the lights on”.
“In addition, each dollar spent on the hardware requires an additional two dollars just to make it work.”
Forward-thinking organisations are using IT to target unnecessary cost and complexity, he explained. “Freeing up time, money and human resources, allows businesses to allow better levels of customer value.”
Simplification, he said, is about reducing complexity and utilising technologies, such as virtualisation and storage consolidation, to maximise the existing infrastructure.
Lastly, he describes automation as being about making service delivery smoother and more efficient, and introducing self-service solutions to allow business services to be delivered on demand.
It is about more than lowering cost, added Dell. “The challenges we face are real. Downturns challenge customers in how they use and manage technology. Businesses need to make their technology work harder.”
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