NETWORK WORLD NEWSLETTER:  AUDREY RASMUSSEN ON NETWORK/SYSTEMS 
MANAGEMENT
09/22/04
Today's focus:  Mailbag: Tight budgets

Dear [EMAIL PROTECTED],

In this issue:

* Readers say IT budgets are extremely tight
* Links related to Network/Systems Management
* Featured reader resource
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Today's focus:  Mailbag: Tight budgets

By Audrey Rasmussen

A couple weeks ago I wrote about my theory that there's pent-up 
demand for management tools because of the lack of recent 
investment in IT. I received a few responses - two of which were 
a bit distressing, if they represent is what is happening in 
companies out there.

One reader's job, which involved directing all IT projects and 
investments, was recently outsourced. Here's the approach that 
his company is taking:

"It appears to me that our company will gladly do without what 
they cannot outsource. Top management confirmed several times 
that they will pay for no management tools whatsoever, and 
whatever management tools are applied must be supplied by 
service vendors or organizations to which various services have 
been outsourced. There is no 'demand' for management 
capabilities or service optimization, no matter the business 
argument. Nothing short of complete business failure will cause 
management to revisit this commitment. I know this because we 
have had many service failures due to security and bandwidth 
problems, and the response has been to live with the problem 
until the service can be outsourced, or the need for the service 
goes away."

He also related that IT was not the only victim of this 
finance-led approach to managing the company. The purchasing 
manager was also laid off because management decided that the 
position had little value for the company. In addition, the 
purchasing processes were abandoned.

This company seems to be suffering from short-term, bottom-line 
thinking. Although there may be a quick, short-term improvement 
to the company's income statement, the long-term effects on the 
company's business may be crippling.

Another reader reported that demand is growing where vast 
amounts of information are being handled. The reader's IT 
department saw the need to have "some kind of 50,000-foot view," 
but that was when budgets were being held back. It needed 
dashboard-style displays of performance, throughput/efficiency 
measurements (that are standardized to be relevant regardless of 
platform) and enterprise project management with notification, 
planning and flexible management tools. But because of the lack 
of budget to purchase a tool, they decided to create their own 
tools in-house.

These responses were very interesting. While not the ideal, it 
looks like IT shops are struggling to keep on doing their jobs 
despite budget cuts and despite a lack of commitment from the 
financial side of the business. I do hope that the climate will 
change for companies like these, but in the meantime, it's 
imperative that although funds may be short, executives still 
must maintain their commitment to IT.

RELATED EDITORIAL LINKS

Testing a theory
Network World Network/Systems Management Newsletter, 09/08/04
http://www.nwfusion.com/newsletters/nsm/2004/0906nsm2.html

Storage vendors ease resource mgmt.
Network World, 09/20/04
http://www.nwfusion.com/news/2004/092004netapp.html
_______________________________________________________________
To contact: Audrey Rasmussen

Audrey Rasmussen is a vice president with Enterprise Management 
Associates <http://www.enterprisemanagement.com/> in Boulder, 
Colorado, a leading industry analyst firm focusing exclusively 
on all aspects of the management of information technology. 
Audrey has more than 25 years of experience working with 
distributed systems, applications and networks. Her current 
focus at EMA is system management, application management and 
enterprise management technologies. Reach her at 
<mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Alterpoint 

Read the latest analyst report on Network Change and 
Configuration Management (NCCM) written by EMA's Dennis 
Drogseth.  This report discusses the latest developments in the 
NCCM market, including an in-depth look at DeviceAuthority 
Suite, a comprehensive solution for configuring, changing, and 
controlling today's complex, multi-vendor IT network 
infrastructures.   Download the report today to learn how you 
can leverage NCCM to reduce the cost and complexity of managing 
network change. 
http://www.fattail.com/redir/redirect.asp?CID=81341
_______________________________________________________________
ARCHIVE LINKS

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