Feeds

IT directors unsure of tech benefits

But when were they sure about anything?

  • alert
  • submit to reddit

High performance access to file storage

With tech budgets under intense scrutiny and vendors waiting with bated breath for a surge in spending, there's probably never been a better time to look at project success. According to a recent poll of IT directors from medium and large businesses, individually they will spend £37.7 million a year on some 45 annual IT projects for their business, but 80 per cent of them don't believe that these solutions will provide a competitive advantage to their firm.

There is an obvious question that begs to be answered - what is the definition of competitive advantage? Does it include profitability and efficiency gains for instance? We don't know and the study, undertaken by Winmark Research, doesn't seek to answer it.

Still, putting that aside, CIOs still aren't very confident about their work. 80% of them expect that their email and intranet systems will crash when they launch a new application. And only 6% of them think that the rest of their critical systems are safe from failure in that situation.

It's a sorry state of affairs but it seems that CIOs are fairly pessimistic about the likelihood of failure with their projects and systems. 65% of those asked said that their projects achieve less than 75% of their expected value. This could be because of a lack of understanding how to measure the value of course - those contentious soft benefits can still irk.

Failure to reap all of the benefits from a project, and failure of an entire system are completely different things. But each IT director polled said that they thought the average cost of system failure to their business was approximately £129,000 annually. That's just the cost of the failure itself too and doesn't include potential lost revenues or damage to reputation. For the IT directors, it's the lost revenues that concern them.

The study needs to be taken with something of a pinch of salt. It was commissioned by a change management software firm, Serena. Still, it highlights the problems and concerns that are to be found amongst tech buyers. IT projects have always been a controversial subject for the business. High failure rates, project over-runs, budget slippage, you name it, the tech project has had it. In today's tough economic climate though, it seems IT Directors are still unsure about their returns and until that improves, spending will remain dipped.

© It-Analysis.com

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.