Report: finance sector can halve network TCO through shared services
Financial institutions can halve network infrastructure TCO through shared managed extranet services
Financial institutions could potentially cut as much as 50% of their network infrastructure TCO through using shared managed extranet services, according to a new white paper by the Yankee Group.
The study, which was sponsored by BT, found that companies could make TCO savings of 51% in the first year of implementation, with savings of 52% for following years.
Institutions in the finance sector are still among the fastest adopters of new technology, and have high levels of technology investment, with a BT Global Services report of November 2009 showing that 36% of financial institutions are still investing in technology to survive the recession. This appetite for new technology means that financial institutions are most suited to adopting shared managed extranet services, which can help users stay ahead of technology obsolescence, speed up time-to-market, enhance risk management controls and network resilience, according to BT, while controlling TCO.
Wael El Kabbany, managing director, BT Middle East and North Africa, said: "Across the front, middle and back office, CTOs and CIOs are looking for ways to create leaner, increasingly cost-efficient infrastructures without compromising their business models - in the electronic trading space, for example, network demands for bandwidth, reliability and security continue to escalate.
"The research from Yankee Group highlights that in order to keep pace with changing business requirements and customer expectations, now, more than ever, CIOs in financial institutions need proven, reliable infrastructure providers such as BT to help them tackle the growing complexity of their networks while reducing their total cost of ownership," he added.
The TCO model developed by Yankee Group for the research project includes all management costs, equipment charges, maintenance fees, resilient connectivity and other related charges such as service-level agreements (SLAs) and reporting, allowing a true and complete comparison between a DIY approach and a shared managed extranet service
Agatha Poon, senior analyst, Yankee Group, said: "As CIOs come to terms with rapid equipment depreciation, system supportability and surging maintenance costs, the time is ripe to evaluate various technology deployment models. CIOs must now turn to solutions that will scale with growth and enable business agility for performance at lower cost".