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Is Today's IT an Undervalued Asset?

mwillems asks: "I work in the technology industry, as a CTO. What I have increasingly seen in the last year, both in North America and Europe, is that IT has ceased to be a valid way to spend corporate money. IT spending used to be looked at as a way to gain competitive advantages. Since the .com bust, the arguments I hear everywhere is 'IT has now been proven to be a waste of money'. At many companies it is now easier to get a corporate account at a strip club than a new PC. Or a budget to develop a much-needed corporate app. If any spending is done it is on hardware - at least that is 'real'. Do Slashdot readers recognise that? Are there going to be many techies left ten years from now? What can we do to keep the spirit of innovation alive while this 'IT is bad' era lasts, and how can we make it end? And, how do you prove the value of IT? This is not as simple as it seems. Try it with a spreadsheet: as your typical CTO has to do so, every day." How do you feel about the cost benefits of IT? Is it worth what your company spends on it, especially if the advantages can't be reduced to a simple dollars-and-cents figure?

9 of 576 comments (clear)

  1. you want the truth? by EnderWiggnz · · Score: 5, Interesting

    the truth is - nope, IT spending in the vast majority of comapnies out there should be drastically reduced.

    I know of a NE Power Company that spends 10k/year/employee on IT expenses.

    Which is insane. They arent a software company, they arent a development company, these expenses are a pure expense that generates no revenue.

    none. nada, zilch.

    how can you justify paying a HS graduate with a "certification" that tells people to reboot their machine as a fix for everything souble what you would pay a marketing person with a college degree?

    you cant - there is no justification. Then you consider perpetual hardware upgrades and software licensing, you get an even worse picture.

    Look at it this way - if you spend $1500 on a home appliance, like a fridge, washing machine, how long do you expect it to last? 15 years? 20? more?

    and you want businesses, who arent in the computer industry, to buy new equipt every 2-3 years? not gonna happen.

    then theres MS's latest yearly tax. if MS would have had it ready 3 years ago, it would have worked, but not now, no way - businesses dont care what they run, they just want to keep their expenses down.

    --
    ... hi bingo ...
  2. Re:The way I see it.. by God!+Awful · · Score: 4, Interesting


    Most people in the tech industry are going to fade out. Thus, leaving the majority of workers those who have been around before the .com boom.

    "Bigger salaries and more work"? Puh-leez!! Since when has the collapse of an industry caused salaries to go up? The whole reason why unqualified people flocked to IT in the first place was the high salaries. The high salaries were the reason why companies pressured the US government to relax immigration controls. Frankly, I think we will see smaller salaries and more work as proprietary programmers struggle to compete with open source.

    -a

  3. Waste of money? by ocbwilg · · Score: 5, Interesting

    And, how do you prove the value of IT? This is not as simple as it seems. Try it with a spreadsheet: as your typical CTO has to do so, every day."

    Screw that spreadsheet nonsense. If I EVER hear a calculator monkey where I work say something as half-assed as:

    'IT has now been proven to be a waste of money'

    I'll be headed straight for the wiring closets and pulling the plugs on all the switches and routers I can find. Shortly thereafter I'm sure he'd figure out that IT actually does have value, though he may still be hard-pressed to quantify it.

    The real problem with IT is that we were promising people the wrong thing. We promised them that it would make workers more efficient, allowing us to get the same amount of work done in less time. What really ended up happening is that now we get several times as much work done in the same amount of time. We don't work shorter hours, but we do get more done. That's a good thing.

    The company that I work for has done several projects for businesses and government agencies that seemed prohibitively expensive at first, but usually ended up paying for themselves in savings after 6 to 12 months. We've done computerized inventory and supply chain projects and tied it all together with wireless PDAs resulting in a faster and more accurate accounting of inventory, reduced labor costs, and the near total elimination of paper documention that required costly and inefficient storage solutions.

    It's can somewhat difficult to understand, so I can see where someone might deceive themselves into thinking that IT is a waste of money. It's much easier to see when you have a specific task that is being moved to a computerized system. But honestly, I have to think that someone who sees IT as a waste of money is either a) not using it properly, b) paying far too much for it, or c) not really thinking about it.

  4. IT Valuation Really Depends on the Manager... by Xzisted · · Score: 3, Interesting

    I run the IT dept. at my company. I am the IT Director, the Systems Admin, and the Network Engineer. It is a small company of 30-35 people. We spend more money on IT than anything else except salary compensation for our employees. When I have to justify something like a computer or peripherals...I usually do it by simply explaining that we are spending 100k on an employee in salary and benefits and that he has to have an effective working environment in order to be productive. We can't just give a programmer some 3 year old used PC and expect the same level of productivity from them as one with a new PC and an ergonomic mouse/keyboard with a nice monitor. Now I'm not talking top of the line stuff like an Aeron chair and a computer with a Geforce4 Ti4600 card...thats just plain ridiculous. But actually investing in hardware and infrastructure that can VISUALLY be seen benefiting the users.

    On another note, due to the fact that I am the only person in our IT dept. at the current time I have been able to keep costs down in other areas of my dept. I don't have to pay for training for any other IT employees or for more computers for them. The fact that I have kept my dept. streamlined and directly on task for what it's purposes are has garnered me alot of faith and responsibility from the higher ups, which means more freedom with the budget.

    IT shops that just spend and show poor price/performance and hence have trouble getting things done is a symptom that there are some really ineffective people in the IT field. I'm sorry, but a degree from DeVry's is not going to get you a job working for me (I am looking to hire someone soon to allieviate some of the upcoming strain on my time). I have been in this field since I was 15 and working for Ericsson during high school as an asst. network admin. I did this because I loved the work not just because it paid well. If an IT person can't show me that they not only know computers but that they understand the underlying purpose of an IT dept. (which is generally to help the company get its work done) then they will be ushered right out of my office and back on the street.

    --

    Honesty may be the best policy, but apparently by elimination, dishonesty is the second best policy.
  5. Re:The way I see it.. by Xerithane · · Score: 3, Interesting

    Unfortunately, the internet is ruined with spam and popups for the vast majority -- no matter what happens. Corporate culture has already sunk it's teeth, and like a vampire, drained it's culture right out of it. We still get to live and be geeky, but it will never be like it was. With how many hundreds of millions online, how will spam ever stop? I like my job, I get to sit and write code. Some is viewed over a web browser, some is never viewed just a network server. This is what makes me happy, not fighting with a dozen clueless dipshits that left the wonders of their fast food job to join a company as a "Senior Perl Developer" because they read a few perl books. I can see it happening now, and it'll be great when the economy does filter it self so that those who do deserve jobs and can't get them, receive them. It's a shame to see good developers go unemployed purely because there is a massive deluge of resumes to try to filter out.

    --
    Dacels Jewelers can't be trusted.
  6. There will always be a need for IT by t0qer · · Score: 5, Interesting

    Man, I love to spin a good yarn.

    The year was 1998. I had just scored a job as an IT guy for a small silicon valley company that was going to revelutionize the world by building a netmeeting for radiologists.

    Well somewhere along the line, my paranoid overly mormon CTO began to think I was satan and thusly ordered all my root priveledges be taken from all servers..

    I'm not going to go into too much detail about why, we'll just leave it at he was a lunatic. I could no longer add users to the mail system, apply patches or do anything a person in my job would normally do, so I just sat there browsing the web all day. Surfing the web and getting paid is pretty fun to say the least.

    This psychotic CTO thought it would be a good idea to put the burden of sysadmin'ing to the coders beneath him. That lasted about 2 weeks.

    Secretary calls, "I forgot my mail password"
    me, "Sorry but since I had my admin rights taken away I can no longer fix those problems"
    CEO calls, "I just got an email saying 1 million porn spams for dildos just passed through our unprotected SMTP server is this true?"
    Me, "Sorry sir, but without access to the logs I cannot verify this, here talk to the coder kendyl put in charge of that"

    Where everyone was used to issues being resolved in 10 to 15 minutes with one phone call now turned into a trapeze act of phone calls trying to track down which coder was in charge of what system. It prevented me from doing my job, it made the coders jobs harder from fielding stupid questions, and the CEO was very pissed off about the whole thing. Coders were wasting up to 2 hours a day each to deal with stupid network shit.

    Well eventually the CTO was fired for being a stark raving lunatic. The coders that held alligence with him blamed me for his downfall. One in paticular would do shit like run a samba server to fuck with my PDC, due to oslevel=1000000 my NT box would never become PDC.

    The company brought in a new group to rewrite the product from scratch, and they brought with them a very wise admin named Ed Goldthorpe (If his resume ever crosses your desk, hire him, he's worth whatever he's asking) Ed slowly but surely got the coders to co-operate with him and got the network turned around in about 3 months. We had VPN, started running qmail, and basically everything was good.

    I sort of faded into the background from then on. I still fielded support calls from our socal office and the one I worked out of.

    The office moved 2 hours away from my house, where before it had been only 15 minutes. I put up with the 4 hour commutes by spending less time in the office. Eventually the company threatened to put me on hourly, I told them to fuck off and went to find another job. Maybe i'll write about the next job if we get an on topic story for it.

    So going back to the point i'm trying to make. Most of these companies that are ditching the full time IT staff and doubling the load on their engineers will feel the burn in about 6 months. They will realize that an engineer pestered by idiots who can't change a font all day isn't a happy engineer.

    IT acts as that buffer too keep the animals from eating the engineers/coders alive. When you throw away IT, you'll be losing a few good engineers too. It happened at my company, and it will happen at yours.

  7. Re:The way I see it.. by Skyshadow · · Score: 5, Interesting
    Smart companies will find good people and pay whatever it takes to keep them.

    Stupid companies will offer low pay and deal with the people they attract with that, who will then go out and make boneheaded decisions and toss the whole company into well-deserved chaos.

    Now, I agree that the average salary has gone down, however that's more just from there being a reasonable pool of people to choose from rather than 1% unemployment.

    --
    Every year during my review, I just pray the words "slashdot.org" aren't mentioned.
  8. Managers Just don't understand. by Herkum01 · · Score: 4, Interesting

    The biggest reason that IT spending gets out of control and produces no real results is becuase managers just don't understand the technology or their technical people enough to know what they are doing and are unwilling to admit their mistakes letting the problem get worse and worse.

    An example here at my current job is working with the monitoring department. The decided to use Netview and Robomon to monitor Windows servers. They hired two contractors who had no experience with either product. The manager who hired them had no experience with those products, project management or even basic programming skills. She simply trusted the judgement of the people who were under her.

    The could not get Netview working, they could not get Robomon working and their usual complaint was to blame it on the system owners. When the system did work, they had done such a poor job of writing monitoring scripts it was not uncommon for our deparment to see on the screen, about 50 to 100 error messages a second scrolling through events window.

    After a while upper-management broke down and hired a outside contractor to tell them what was wrong. I talked with her and she said, it was the contractors that they hired. I asked, are you going to tell management that? She said no, they did not want to hear that they had made a bad decision so she was going to give them what they wanted. Saying they may need some training.

    Finally they decided that it was the Robomon software that they had purchased was the problem. So the contractors, who by this time, being so effective, were hired as employees. They had decided they wanted HP Openview, nevermind that they had not worked with that either. They wrote a report detailing their methodology for determining the best monitoring software and listed HP Openview at the top of the list. I took at look at their report. It seems that made up a number and then assigned it to the packages that they were suppposed to review. Of course Openview was at the top.

    So now, after two years, they still have not been able to configure an effective monitoring tool but lets look at the total costs.

    1. Netview Upgrade $50,000
    2. Robonmon Licensing $1,000/server * 200 servers
    3. Outside Contractor for 3 weeks, $40,000
    4. HP Openview License $250,000
    5. OPenview Server Licensing $1,000/server * 235 servers
    6. 2 Top of the scale employees, $70,000/each * 2 years

    $1.055 million dollars in support and software, don't even know about the hardware. The manager had been told that their were problems with their employees but she brushes them off, and always backs them up. So is it any wonder, with this attitude about technology that people don't want to put more into that bucket!

  9. Re:I blame the geeks by 0x0d0a · · Score: 5, Interesting

    People who would rather visit slashdot.org than work on their latest assignment.

    I agree fully, though Slashdot is as reasonable a news site as any (in their headlines) for getting tech news, which can be quite imporant ("New Windows Worm Attacks IIS 5.3.1 installations"). It can be used reasonably.

    People who would rather try getting Linux running on their companies server than maintaing whatever's already on it

    I don't buy this. If the company really has no need to expand that server's services in the future, isn't throwing any more money at the server software, and is comfortable with whatever degree of technology lock-in they're suffering, *then* there is no reason to try Linux.

    There's a lot of money being blown on IBM, Oracle, and Microsoft servers because at purchase time, no one wants to try a sudden, jolting transition, and no one bothered to do a gradual, gentle one earlier. These gradual changes can save the company a lot of money over the long term. If an IT person has spare time, he *should* be experimenting with cheaper software alternatives for the company.

    People who think they can show up to work dressed like a slob and that people will respect them because they are 'elite hax0rs.

    I *hate* the entire "dress up to go to work" ethic. Now, don't get me wrong. You have to interact with people over the course of the day, and they don't want you wearing a thong or a "Big Johnson" T-shirt. That's legitimate. And some positions (sales, for instance) really do put a *lot* of emphasis on making a corporate impression for the company. So I can understand dressing up there. But I really don't see the point in blowing a bunch of time and money getting dress shoes. They don't improve my productivity -- if anything they hurt it. I spend most of my day looking at a computer screen and maybe occasionally a telephone. I'm not talking face to face with customers. Why should anyone care whether I have a tie or whether I have an expensive dress shirt?

    Fortunately, the ridiculous emphasis on clothing has been recognized and mostly eliminated in the last few years -- compared to the 70s or the 80s, clothing requirements are far, far more lenient. A shirt with a collar and slacks pretty much are enough most places I've seen (and slacks=>blue jeans at others).