Establish Ongoing IT/Business Dialogue

 
 
By Sunny Gupta  |  Posted 2010-08-20 Email Print this article Print
 
 
 
 
 
 
 


Step No. 2: Establish ongoing IT/business dialogue

IT must sit down with the business groups it supports and start a proactive dialogue about aligning IT services with business value. IT can do this by showing the business leaders the costs and value of IT services consumed by the business units. When business leaders understand that there is a real cost-value trade-off in services and service levels, they'll be motivated to reduce spend and focus on high-value services.

For example, a Fortune 500 financial services company calculated the TCO of the "products" that it offers to its business units. From there, the organization generated a transparent, monthly summary for its business unit leaders, including the cost and consumption of services. The company used this visibility into costs to accelerate infrastructure standardization and reduce demand for low-value and unused IT services. As a result, the company estimates that it identified approximately $100 million in unrecovered IT spend and approximately $10 to 20 million in direct cost reduction.




 
 
 
 
Sunny Gupta is co-founder, President and CEO of Apptio. Sunny's career in enterprise software spans more than 16 years, with roles in general management, strategic marketing, product management and business development. Most recently he was the Executive VP of Products at Opsware, and was responsible for all of the company's product businesses (up to its acquisition by HP for over $1.6 billion). Prior to Opsware, Sunny was the co-founder and CEO of iConclude, which pioneered the IT runbook automation market (and drove its acquisition by Opsware for $62 million in less than two years from inception). Before founding iConclude, Sunny ran the Java/.NET Performance Management Product Group for Mercury Interactive (acquired by HP for approximately $4 billion) and served as VP of Marketing and Business Development at Performant (acquired by Mercury Interactive). He also served as General Manager of Business Development at Rational Software (acquired by IBM for approximately $2 billion), while playing a role on the team that helped scale that company from $300 million to $850 million in revenue. Sunny also co-founded Vigor Technology before its acquisition by Rational, and held product management and consulting roles at Easel Corporation and IBM. Sunny earned a bachelor's degree in computer science from the University of South Carolina. He can be reached at sgupta@apptio.com.
 
 
 
 
 
 
 

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