IT managers guess their infrastructure budgets

A survey of 200 IT managers by Peregrine Systems and ICL, claims that one in seven IT managers still use guesswork alone to measure their infrastructure costs.

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By  Greg Wilson Published  June 14, 2001

A UK survey has identified that one out of seven IT managers are still using guesswork alone to measure their infrastructure expenses.

The report, which was compiled by Peregrine Systems and ICL, surveyed 200 IT managers during May.

According to the report, UK businesses could end up losing up to £6 billion annually in IT budgets, as IT managers admitted they were unable to estimate within 30% how much their expenditure was.

“If any other business [department] wasn’t able to control its costs in the same way that IT isn’t able to do, then the CEO would be breathing down their necks,” William Snyder, programme director, enterprise data centre strategies, Meta Group told ACN last month.

“But in IT we have kind of always got away with it. We have been uneasy with our estimates and when we do make estimates they’re usually wrong,” he added.

The inability to accurately forecast IT expenditure stems from a lack of asset monitoring and management within organisations. Nearly half of the report's respondents admitted making purchasing decisions without checking existing assets, whilst a fifth couldn’t even guess within the nearest ten as to how many suppliers they had.

Dave Chapman, IT infrastructure manager at ICL, said IT managers should stop putting their finger in the air and hoping for the best.

“There are a number of methods available to managers, that they survey suggests they don’t use,” Chapman was quoted as saying on Silicon.com.

To save budgets being swallowed by the IT 'black hole' Chapman suggested firms introduce effective methods to measure and manage costs instead of just doing it haphazardly once a year.

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