Reducing the Cost to Serve - Workstation & Peripheral

About this research note: Operate & Optimize notes provide Reducing Cost-to-Serve: recommendations for effective and efficient IT practices that help Workstation & Peripheral improve the performance or reduce the cost of technologies already Services deployed in the enterprise. Publish Date: March 25, 2009
Once IT has determined that workstation and peripheral services is a potential area for cost savings, it should assess how much time is available to reach cost-reduction targets. According to this time frame, IT can narrow down the cost- cutting techniques at its disposal. When implementing these techniques, IT should keep potential pitfalls in mind, and adopt the measures recommended within this research note to avoid these traps. © 1998-2009 Info-Tech Research Group www.infotech.com
Executive Summary This research note applies the Cost-to-Serve cost-reduction approach to identify cost savings opportunities in the workstation and peripheral services area. Coverage includes:
» Guidance on where this service area is a strong cost-cutting candidate for the organization. » Descriptions of specific cost-reduction measures that can be achieved according to varying time frames. » Case studies that provide real-life insight into experiences with these cost-reduction techniques.
By understanding the cost to deliver workstation and peripheral services, IT can determine a better cost management approach that reduces costs while protecting the overarching strategy of the organization.
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Introducing Cost-to-Serve The Cost-to-Serve method examines the relative cost to deliver specific IT services, such as servers and storage services or end-user support services. Its ultimate goal is to directly map and forecast the impact that changes in spending on IT services will have on the ability to achieve business strategy.
When activities have been categorized into services, it's much easier to decide what spending changes to make. Spending changes that will negatively affect business strategy are avoided, and those that will positively impact business strategy are prioritized and pursued.
Service Description The workstation and peripheral services area includes not only A Practical Methodology desktops and laptops, but also the entire output fleet, which encompasses printers, scanners, fax machines, copiers, and multi- For step-by-step guidance on function peripherals. leveraging the Cost-to-Serve
It is the service area most tangible to end-users; therefore, be sure method to reduce costs, refer to
to make informed decisions when cutting workstation and the ITA Premium research note,
peripheral services and communicate the reasons for doing so, "Methodology: Reducing IT Cost-
because ill-planned reductions can result in end-user to-Serve." dissatisfaction.
When to Reduce a Service To investigate whether cutting back on workstation and peripheral services presents a cost-cutting opportunity, consider the following statements: » There are unused computers and/or printers in the organization. » The enterprise can get through another fiscal year without acquiring new PCs.
» The enterprise is planning to acquire new laptops and desktops. » Powerful computers are deployed to users who may not require high processing requirements. » Laptops comprise 10% or more of the organization's workstation fleet.
» The print environment is non-standardized. » Contracts with hardware and software vendors for workstations and peripherals have not been examined recently.
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Enterprises with these characteristics should begin to examine the workstation and peripheral services area for possible cost-savings.
Cost Reduction Targets A recent survey of IT decision makers by Info-Tech Research Group found that 66% include workstation and peripheral services as a cost management area of focus on an ongoing basis. Two commonly cited methods employed to control workstation costs are: » Desktop images standardization (67%), and
» Workstation hardware refresh rate policies (63%). Currently, 47% of organizations replace ... [download for more]