ID Number: G00155603



Cut Costs by Exploiting the Commoditization of IT
11 July 2008
 
Brian Gammage  

Identifying where and how to embrace commoditization in IT products and services can reduce overall IT spending by 15%. Gartner has developed a simple model to help enterprises do this.




Price: US$495.00

Pages: 14






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Table of Contents


    
 Analysis

1.0
    
 The Commoditization of IT Leads to Overspending

1.1
    
 Customized IT Remains Critical
1.2
    
 More Commoditized Should Mean Lower Cost
1.3
    
 The Trend Toward Greater Commoditization
1.4
    
 Overspecification and Overspending
2.0
    
 Identifying the Overspend

2.1
    
 The IT Commoditization Curve
2.2
    
 Commoditization and Market Maturity
2.3
    
 The Cumulative Potential for Savings
2.4
    
 Switching Costs vs. Potential Savings
3.0
    
 A Model for Measuring Commoditization

3.1
    
 The Constituent Parts of Commoditization
3.2
    
 Building a Commoditization Score
3.3
    
 Evaluating the Level of Standardization
3.4
    
 Measuring the Level of Supplier Choice
3.5
    
 Codifying Ease of Access to Appropriate Skills
4.0
    
 Identifying Potential Cost Savings

4.1
    
 Using the Model
4.2
    
 Examples of the Model in Use

4.2.1
    
 Managed Desktop Services

4.2.1.1
    
 Market Level Evaluation
4.2.1.2
    
 Organization Evaluation
4.2.2
    
 Notebooks for Traveling Workers

4.2.2.1
    
 Market Level Evaluation
4.2.2.2
    
 Organization Evaluation
5.0
    
 The Challenges of Leveraging Commoditization to Cut Costs

5.1
    
 The Importance of Vendor Influence
5.2
    
 Lack of Time and/or Resources
5.3
    
 Lack of Maturity in IT Procurement
5.4
    
 The Cost of Applying the Model
5.5
    
 Greater Commoditization Is Not Always Desirable
5.6
    
 Project Level: Different Measures Required
6.0
    
 What You Need to Know

    
 Recommended Reading


List of Tables


Table 1.  
 Summary Measures of Standardization
 

Table 2.  
 Scores for the Number of Available Suppliers
 

Table 3.  
 Evaluating Access to Appropriate Skills
 

List of Figures


Figure 1. 
 IT Commoditization Curve
 

Figure 2. 
 Identifying Cost-Saving Opportunities
 



Browse Topics:
 
IT Asset Procurement
Sourcing Strategies
Reducing or Controlling Costs
Consumerization of IT
Vendor Management




© 2008 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.




Resource Id: 720312