Depending on whether companies need to migrate or transform, there are cost drivers that make life unnecessarily difficult for those responsible: a lack of cost transparency, high operating costs for legacy systems, time-intensive, manual configurations of hardware and software as well as needing to rectify errors: industry experts agree that these are all costs which can be adjusted. According to their estimates, 30 percent of IT expenditure is cost-inefficient, i.e. the costs in question are unnecessary.2
2 Flexera 2020 State of Tech Spend Report
A further example for potential savings: migration projects. Without the right IT strategy, you will quickly fall into a cost trap. Because when switching to cloud computing, there are numerous pitfalls to be aware of. Simple lift-and-share approaches tend to lead to rising costs. Applications, for example, should initially be designed as cloud-native to allow the costs to drop significantly and for savings of up to 30 percent to be realistic. This design, however, is no trivial thing. The laborious identification of application dependencies is the greatest challenge for 64 percent of companies.3
3 Flexera 2020 State of the Cloud Report
In the face of needing to manage many technologies in parallel, it is also becoming increasingly difficult for companies to guarantee transparency, seamless processes, or comprehensive security and compliance. The more heterogeneous the IT, the more complex, opaque, laborious, and costly the management. It is therefore no surprise that many CIOs complain about a lack of cost transparency. For 61 percent of CIOs, cost transparency in business services is the greatest challenge. Anything but an ideal starting point for decision-makers to provide future-proof advancement of digitalization in the company.