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January 31, 2009


Devang Panchigar

Hi Chuck,

I kind of agree and disagree with some aspects of this post. As you point out there being two categories of thinkers, in terms people that want to save money (not by choice) and the ones that want to spend money for operational efficiencies (seldom see these days).

As we all talk to customers today, one thing that echoes out of all of them is cost cutting or cost savings, IT in most cases being a support organization to the core of the business, tends to get effected in terms of budget and information delivery cost.

During the peak years of IT growth, like 1998/1999, 2005/2006/2007, people (IT managers, CIO's) fall into category II thinking, where money is not an issue to obtain realtime information using BI and workflow for operational efficiency.

Things do change as we get into years 2000, 2001, 2008 and now especially 2009. When IT budgets are being cut, how can any customer or CIO be ready to throw another 5 Mil into IT spending to gain further efficiency (because that is what they did during the peak years). All operational inefficiencies that were accumulated during the boom years, while have to change to efficiencies during these downturn years, in terms of infrastructure and resources.

These days talking to customers, it seems like all want to somehow manage to get through 2009 without any major IT spending and that even includes somehow managing to extend the life of the equipment they have on the floor. In this respect the data that is gathered from applications, users, etc is not decreasing, the run rate of data is likely to increase, but the pressure is on the IT managers to delivery without spending money, in essence go through re-org of their existing IT equipment (through reclamation, redeployment and operational changes).

Example (Just taking about storage): We have all heard about this, where a SYS Admin would ask the storage admins that he needs 5TB of Tier 1 storage. While his database currently sits at a size of 2TB, he projects that over the next 3 years the size of the database will be 5TB. Those days of operations inefficiencies are long gone now, but the problem is these allocations that were done several years ago and currently is unused. These are the hot spots the IT managers have to manage to locate and redeploy.

There are tons of these examples, we run across everyday, but these days with IT budgets shrinking, IT mangers and Operational Directors have no choice but to look at alternatives. I believe that is one of the reasons, EMC after a long straight 21 quarters fell below 2 digit growth (do not get me wrong, it is great staying profitable during these times and its great that EMC has been able to deliver on it), but the times are hard and all vendors realize it.

We will real quickly see a shift of Category II thinkers moving into Category I, not by choice but under pressure to delivery without IT spending.

The comments to this entry are closed.

Chuck Hollis

  • Chuck Hollis
    SVP, Oracle Converged Infrastructure Systems

    Chuck now works for Oracle, and is now deeply embroiled in IT infrastructure.

    Previously, he was with VMware for 2 years, and EMC for 18 years before that, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    Chuck lives in Vero Beach, FL with his wife and four dogs when he's not traveling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not ever buy him a drink when there is a piano nearby.

    Note: these are my personal views, and aren't reviewed or approved by my employer.
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