Gartner Research

Elastic IT: Fixed Costs, Variable Costs, and IT Management

Published: 14 December 2009

ID: G00203845

Analyst(s): Jack Santos

Summary

All the conversation about cloud computing has an important subtext. No longer when the CEO says "how much will it cost to . . ." can the CIO answer with a fixed-cost paradigm. Development costs, infrastructure costs, maintenance, and day-to-day operations are migrating to a variable-cost model, with fixed costs becoming a smaller chunk of the IT budget. This is at the core of IT externalization. This management initiative document explores the implications of this trend, how it will significantly impact the CIO-CEO-CFO relationship, and IT's contribution to the enterprise.

Table Of Contents

Synopsis

Analysis

The Details

  • Variable-Cost Use Cases
  • The Postmodern IT Organizational Model
  • A Word About “The Dark Side”

Conclusion

Related Research

Notes

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