Page Five

 
 
By Peter Coffee  |  Posted 2004-11-08 Email Print this article Print
 
 
 
 
 
 
 


Carol Knouse
Vice president and CIO
The Donna Karan Co. LLC  
Is your organizations IT budget up, down or flat for 2005?
Our budget is down for 2005 as a result of increased automation and process improvements made within the IT department during 2004. Are there any major shifts in how the IT budget is being allocated? In the past, the IT budget has borne the cost of all IT-related expenditures, even if an expenditure could be directly attributable to a specific business unit. For 2005, any expense that can be identified with a particular business unit is being budgeted by that business unit to accurately value the contribution of that unit.
Is there any one product or technology on which you wish you could spend more or less?We would like to spend more money on business intelligence tools and services, but the rising cost of securing our infrastructure against intrusion, viruses, worms and so on is negatively impacting our ability to spend elsewhere. While security of our computing environment certainly is a top priority for me and all of our senior executives, it is not contributing to our bottom line. —E-Mail Response Kevin Levesque
IT manager
ATX II LLC   Is your organizations IT budget up, down or flat for 2005? Looks like our IT budget will be up for 2005, even after a considerable jump in spending in 2004. Stability, redundancy, disaster recovery and consolidation of resources are the driving factors for us. Are there any major shifts in how the IT budget is being allocated? ATX has shifted allocation of funds based on the specific project and has migrated away, in a sense, from traditional servers to a blade server/SAN architecture that seems to scale well in a high-growth environment such as ours. Is there any one product or technology on which you wish you could spend more?Security is always an area that I wish we could allocate more time to. Perhaps this year will be the year of the full-time security consultant–either contracted or hired. —E-Mail Response Bill Conati
Director of IS
MAAX Spas Arizona Inc.   Is your organizations IT budget up, down or flat for 2005? Budget is flat to guarded. Are there any major shifts in how the IT budget is being allocated? Yes, as we move toward a lean manufacturing and office environment, a portion of our savings is reinvested directly into the company—information systems-related or otherwise. There is strong incentive to incorporate lean initiatives because it provides excellent access to funding for support of IT projects throughout the organization. Will you be making investments in new technology areas in 2005? Yes, but it all depends on lean initiatives. Is there any one product or technology you wish you didnt have to continue to spend (or spend so much) on? Security, anti-virus, anti-spam devices. Seems that more and more of my IT budget is being allocated to the annual cost of these kinds of technologies instead of in innovating products that improve competitiveness, bottom line and so on. —E-Mail Response Michael Schwedhelm
Vice president and CIO
United Labor Bank   Is your organizations IT budget up, down or flat for 2005? Up 40 percent over 2004. Are there any major shifts in how the IT budget is being allocated? Yes, in 2004 we cut back sharply on maintenance because of other companywide priorities. This year, were doubling up on the maintenance portion of our budget to "catch up." Also, we have two major IT projects: The first is a new core processing system. Were switching vendors and converting to a new system. This will touch every employee in the bank as well as every customer, and it has to be done right the first time. The second will be a new Internet banking system. Getting the two systems to talk and process correctly will be challenging, to say the least. Will you be making investments in new technology areas in 2005? Well be making investments in more technology but not acquiring any new (that is, not used at the bank before) technology. Is there any one product or technology on which you wish you could spend more? More wireless. It would make life much easier, but there is a good deal of reluctance to accept this by other managers, as well as by our regulators, because of security fears. Is there any one product or technology you wish you didnt have to continue to spend (or spend so much) on? Clearly, this screams "security" to us. It would be great if everyone on the Internet was nice. Theyre not, so we have to continue to spend a decent portion of our budgets on defensive and tracking technologies that could be spent elsewhere. —E-Mail Response Check out eWEEK.coms for the latest news, reviews and analysis on IT management.


 
 
 
 
Peter Coffee is Director of Platform Research at salesforce.com, where he serves as a liaison with the developer community to define the opportunity and clarify developersÔÇÖ technical requirements on the companyÔÇÖs evolving Apex Platform. Peter previously spent 18 years with eWEEK (formerly PC Week), the national news magazine of enterprise technology practice, where he reviewed software development tools and methods and wrote regular columns on emerging technologies and professional community issues.Before he began writing full-time in 1989, Peter spent eleven years in technical and management positions at Exxon and The Aerospace Corporation, including management of the latter companyÔÇÖs first desktop computing planning team and applied research in applications of artificial intelligence techniques. He holds an engineering degree from MIT and an MBA from Pepperdine University, he has held teaching appointments in computer science, business analytics and information systems management at Pepperdine, UCLA, and Chapman College.
 
 
 
 
 
 
 

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