Focus on spending smarter than spending less, says HP study

Astudy conducted by HP revealed that 48 percent of Asia Pacific respondents
view the current economic climate as an opportunity to restructure their
technology environments for the future. These organizations understand that by
deploying a shrewd technology strategy to improve efficiency and
cost-effectiveness now, they can come out of the economic downturn ahead of
competitors.

75 percent of respon­dents in Asia Pacific feel that in today's economic
climate it is more important than ever to have good alignment between
techno­logy and the organiza­­tion's business goals. Examples of this include
applying techno­logy to maintain current revenue streams or to generate new
revenue streams, as well as provi­ding improved resources and support to
business units.

For many technology executives, the first step to improving their
contri­bution to the organization's strategic goals is reducing unnecessary
spend while deploying new technolo­gies to gain efficiencies. Respondents point
out that the goal is not simply to spend less but instead to spend smarter.

In Asia Pacific, 29 percent of technology executives say the econo­mic
climate has made them more likely to consider moving away from mainframes.
Across all regions, a main driver for the switch is the high cost associated
with mainframe maintenance and licensing. Many respondents are shifting away
from main­frames because alternatives allow for increased flexibility as well as
saving money, time and space.

Most technology execu­tives are planning a combination of projects that will
consolidate IT operations, reduce redun­dancy and improve service delivery and
flexibility, while making IT more cost-efficient. Executives from across the
region indicate that they are either planning or considering the following
projects in the next 12 months:

• Server and storage consolidation (62 percent)
• Virtualization (58 percent)
• Application moderni­zation or consolidation (49 percent)
• Automation (42 percent)

Organizations indicate they plan to pay for these using a combination of
strategies, primarily cash on hand (62 percent) followed by financing (23
percent).

Given the current economic environment, 52 percent of respondents in Asia
Pacific see outsourcing as an attractive solution. For most respondents, the
decision to outsource is influenced by how cost-effective it will be, the
quality of service and solutions, the increased flexibility, the managea­bility
and efficiency it offers.