If you came to me with a cost-cutting plan that includes suggestions from various IT experts of “virtualisation, removing data duplication, WAN optimisation, installing air economisers, and using open source management tools, among others”, I’d save the company some money right now by firing you. You should have done this stuff already, and if not, you should get on with it without advertising that you haven’t been earning your keep.

A cost-cutting plan for IT is both an opportunity and a threat for you and your organisation. The opportunity lies in linking IT to real business benefits. The threat is that taking a wild slash through your IT operational costs could threaten your ongoing business. Remember, there are three areas in which costs can be cut – each of which presents different challenges to you and your organisation, and all of which need business buy-in. This is the line you have to tread between creating an organisation that is lean and mean, or just plain thin and angry.