The increasing viability of virtualization and cloud technologies is enabling the implementation of a utility service model that defines a new standard of operational excellence. For business organizations, this represents a fundamental step change in the way IT services are managed and delivered.
The opportunity is significant. Traditional improvement initiatives drive incremental efficiency gains within the existing operational environment, typically resulting in savings of between 10 percent and 20 percent. A transformational approach to improvement establishes a new, optimized IT delivery model that fully leverages the benefits of utility computing, often producing overall cost savings of 40 percent or more.
This ISG white paper examines recent developments in IT management strategies, specifically as they relate to the standardization of IT service delivery and utility computing. The potential benefits of this emerging approach are discussed, as are challenges and obstacles to transforming the IT environment. Keys to a successful utility initiative are outlined.
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