Forrester: IT to cut back on mundane maintenance

 

Summary

New Forrester Research report predicts that only half of 2010 IT budgets will go to maintenance, instead of the typical 70 percent. The remainder 50 percent will go toward innovation and business expansion.

Events

Echelon 2012
June 11 and 12, 2012

University Cultural Centre, National University of Singapore

Startup Asia Jakarta 2012
June 7 and 8, 2012

12th Floor, Annex Building, Wisma Nusantara Complex, Jl. M.H. Thamrin No. 59 Jakarta 10350, Indonesia

MMA Forum Singapore
April 23-25, 2012

Grand Hyatt Singapore

Technology execs may have finally gotten tired of setting aside 70 percent of their infrastructure budgets to keep the lights on, according to a Forrester Research report. If Forrester is right, there will be a key sea change ahead.

The typical IT thinking dictated that 70 percent or so of IT budgets went to maintenance and support with the remainder going toward innovation. In 2010, Forrester expects that only half of your IT budget will go to maintenance with 30 percent going to innovation. That 20 percent remainder will go toward business expansion.

Forrester analyst Robert Whiteley noted that infrastructure and operations spending typically accounts for half of the IT budget. In a nutshell, IT infrastructure spending needs to set itself up for growth. The problem: Spending half of the IT infrastructure budget and the data center (server, storage, networking) and the remainder on user technology (desktops, laptops and mobile devices) isn't going to cut it. Infrastructure spending is going to have to carve out space for innovation and projects that grow the business.

Read more of "IT infrastructure spending to cut back on mundane maintenance, says Forrester" at ZDNet.com.

Talkback

Add your opinion

In order to post a comment, you need to be registered. (Sign In or register below)

Post your comment

ZDNet Asia Live

#radio Radio Serbia by EnjoyIT 1.0 http://t.co/nGQFvX2E

Rise in <b>Chinese</b>-funded acquisitions could trigger more hurdles http://t.co/0pXBS1HR

Rise in Chinese-funded acquisitions could trigger more hurdles: By Ellyne Phneah , ZDNet Asia on May 22, 2012 (6... http://t.co/W3SOdw2c

RT @zdnetasia: CFOs increasingly involved in IT investment decisions. http://t.co/8QrfwOSb

CFOs increasingly involved in IT investment decisions http://t.co/XD1LerFq via @zdnetasia #PrivateCloud #SC2012 #CAPEX

Rise in Chinese-funded acquisitions could trigger more hurdles. http://t.co/VC3G3m3o

RT @zdnetasia: Rise in Chinese-funded acquisitions could trigger more hurdles. http://t.co/VC3G3m3o

So much as we know , MTK6575 extremely integrated frequency1GHz ARM Cortex-A9 processor, the superiority of 3G / HSPA Modem, and help the...

1 hour ago by y15822137359 on 5 SaaS adoption speed bumps to avoid

Rise in Chinese-funded acquisitions could trigger more hurdles - ZDNet Asia: Rise in Chinese-funded acquisitions... http://t.co/bZaAQnRL

Rise in Chinese-funded acquisitions could trigger more hurdles http://t.co/mIsuZjnU http://t.co/erFX4aVv #arcavir

http://t.co/VNaZtseV Rise in Chinese-funded acquisitions could trigger more hurdles: "Cash r... http://t.co/N0gZZEdR http://t.co/wiqY9ktt

Rise in Chinese-funded acquisitions could trigger more regulatory clearance issues overseas http://t.co/cvLSpTwo #in

Alibaba seeks $2.3B from shareholders for Yahoo deal. http://t.co/qLRAhRQk

CFOs increasingly involved in IT investment decisions. http://t.co/8QrfwOSb

Quickflix WatchNow 2.0 http://t.co/XWti5VWT

Official UEFA #EURO2012 app with Orange 2.0 http://t.co/yoAOXTI1 #hotpeopleifollow

I reckon your view: "CRM is strategy, not software", if a company replicating the approach uses in ERP implementation into CRM, what they...

1 day ago by wykoong on Gartner: Mobile CRM gives better ROI than social

This video will teach you about the Excel fill handle but also provide you with a workook to download... http://www.youtube.com/watch?v=...

1 day ago by TradeBrother on A quick fill handle trick for Microsoft Excel

waiting...

3 days ago by eapete on What should count in a company's market value?

Boy, you've opened a can of worms now.

Wait for the rants & raves.

3 days ago by eapete on What should count in a company's market value?

I was puzzling before this whether to replicate the success formula we executed for a financial institute, and come out with a standard s...

4 days ago by wykoong on Drop the egos, copy ideas, then innovate