Posts Tagged ‘Infrastructure’

Solaris health system turns to Xerox to reduce costs, maximize IT investment

July 17th, 2010

Healthcare institutions charged with cost cutting, improved patient satisfaction and overall operational efficiency are turning to Xerox Corporation (XRX 8.36, +0.06, +0.72%) for help. Solaris Health System, in Edison, N.J., will save more than 20 percent on costs associated with printing, storing and sharing documents, as one of Xerox’s newest managed print services (MPS) clients.

Xerox will deploy an MPS strategy to help Solaris reduce IT infrastructure costs across its network of seven healthcare facilities by consolidating the number of output devices like printers, copiers and fax machines and providing pre-emptive service for all equipment regardless of vendor. Solaris will also use Xerox’s expertise in business process outsourcing to improve the flow of information through its medical network by integrating document management strategies with existing health information system (HIS) applications and technology.

“By changing how we merge, store and use our data, Xerox will make it possible for our physicians to have the information they need when they need it, and deliver a positive experience to our patients,” said Miroslav Belote, director of Information Systems, Solaris Health System.

Using MPS to redirect print jobs to the most cost-effective machine, Solaris will meet environmental sustainability goals to reduce paper use, power consumption and landfill waste. The health system will also benefit from onsite Xerox document advisors to help with more effective patient communications and regulatory forms. By printing documents on demand in the print shop, Solaris will eliminate piles of hard-copy forms taking up costly warehouse space.

Xerox will design training programs and change management procedures to help employees successfully adapt to new technology and work processes.

“The healthcare industry faces tremendous pressure to provide superior services, manage data and comply with industry regulations on limited budgets,” said John B. Jones, vice president, Healthcare Providers, Xerox. “By relying on Xerox’s expertise in document management, healthcare organizations are saving money and freeing up resources to focus even more on what matters most: providing exceptional care to their patients.”

As the largest provider to manage all document and business process needs within a healthcare organization, Xerox is helping healthcare organizations like Methodist Healthcare, University of Pittsburgh Medical Center, Marin General Hospital and White Memorial Medical Center intelligently organize information — from both paper and electronic sources. Through ACS, A Xerox Company, Xerox manages all aspects of healthcare programs, healthcare IT, clinical workflows, administration and patient accounting, care and disease management, and business office and revenue cycle operations.

Xerox was positioned by Gartner, Inc., in the Leaders Quadrant in the “Magic Quadrant for Managed Print Services Worldwide(1)” for 2009 and the company was recognized as a leader in IDC’s 2010 MPS MarketScape report(2).

Source:http://www.marketwatch.com/story/solaris-health-system-turns-to-xerox-to-reduce-costs-maximize-it-investment-2010-07-15?reflink=MW_news_stmp

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Nearly Two-Thirds of IT Infrastructure expected to be outsourced by 2020, according to savvis’ global study

June 8th, 2010

An annual study commissioned by Savvis, Inc. , a global leader in cloud infrastructure and hosted IT solutions for enterprises, predicts the number of companies that outsource their IT infrastructure will increase globally from 17 percent today to 64 percent in 2020.

Independent research firm Vanson Bourne in April surveyed more than 600 IT and business decision makers from mid to large enterprises and public sector organizations based in the United States, United Kingdom and Singapore.

Sixty-one percent of respondents believe managing IT in-house provides no competitive advantage and has to stop.
“With the rise in acceptance of outsourcing within the IT industry, and the related economies of scale that accompany the managed services model, businesses are finding it difficult to justify owning their own IT infrastructures,” said Bryan Doerr, chief technology officer at Savvis.

The trend away from in-house IT infrastructure can be seen in the study results:

United States: In-house IT infrastructure is expected to drop from 82 percent today to 49 percent in 2020.
United Kingdom: In-house IT infrastructure is predicted to drop from 90 percent today to just 23 percent in 2020.
Singapore: IT infrastructure being controlled in-house is expected to drop from 62 percent today to 38 percent in 2020.

In looking at 2010, organizations cited cost savings (58 percent) and growing revenue (54 percent) as their top strategic priorities. The biggest issue organizations face concerns doing more with less budget (54 percent).

When asked what factors prevent their organizations from outsourcing all elements of their IT infrastructure, survey respondents cited company culture (43 percent) and sunk costs in which IT assets already are paid for and owned (37 percent).

Source:http://www.prnewswire.com/news-releases/nearly-two-thirds-of-it-infrastructure-expected-to-be-outsourced-by-2020-according-to-savvis-global-study-95837954.html

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IT and local public services: predicting the next 3-5 years

June 2nd, 2010

The Socitm President, writing exclusively for eGov monitor, argues spending cuts provide CIOs a unique opportunity to transform their organisation and deliver more holistic and successful public sector ICT infrastructure.

In the aftermath of the £6bn cuts package, including the freeze on all new IT expenditure over £1m, it is difficult to think beyond the task of assessing immediate implications.

But think we must, because the current crisis may represent a once-in-a-lifetime opportunity for us, the CIOs, to lead our organisations to build a more mature, holistic, invest-to-save and ultimately successful approach to public sector IT.

This is not a soft option: frankly it is very hard – and very little of it is about technology. It actually concerns culture change, outcomes focussed management, staff empowerment and customer needs.

IT departments will need to change dramatically, becoming much less to do with making things and much more about facilitating change and driving efficiency. In the best performing organisations of tomorrow, IT will be a power house of innovation and modernisation – not simply a support service.

That means moving out of the technology focussed comfort zone. IT won’t just be expected to talk in the language of the business, it will become a major part of the business, expected to take risks and responsibility for improvement. The CIO must be a trusted agent of change, not letting technology lead change but harnessing technology to reform how we design and deliver services from the inside out.

As we move beyond business process improvement enabled by IT, the issue over poor value from information will have to be addressed. This will become a pressing priority for IT if it is to deliver significant productivity and efficiency improvements but it will be hard to turn some of this into cashable savings. It also moves IT still further from the ‘T’ towards the ‘I’.

However, one area of technology which will remain a high focus is security and authentication. This is arguably going to remain the biggest technical hurdle ahead. Without a universal cost-public sector solution to authentication, – and opportunities exist for low cost, federated models of ID and authentication – many areas of information sharing and team integration will prove impossible.

New technologies which are common outside work will be adopted within our organisations. The fear of social networking, for example, will be exorcised and these new tools are likely to become dominant communication mechanisms competing with and replacing current levels of email.

IT business continuity will become more important, and organisations that are currently skating on thin ice with their business continuity and IT disaster recovery, including schools, will have to re-think their business model and make suitable provision. Driving without insurance is not acceptable, neither is running a public service without business continuity. This will further promote shared services and integration across the public sector with more cost efficient and subtle methods of providing IT business continuity than simply outsourcing data centres to the private sector as we have in the past.

IT will be at the heart of other profound changes. The concept of the desktop and for that matter an office will disappear. Technology will support a “mobile briefcase”, and typically people will be using their own equipment to access information and networks, not equipment provided by their organisation. They may go to an ‘office’, but not the dedicated office base of the past.

People will choose what technology they want to use and buy it themselves – most of us already have our own phones and PCs, (and cars!) so why do we need our employer to duplicate this? This will save money on equipment and support costs and give employees more choice.

Reusable transactions based around shared processes will dominate software priorities. Public service organisations will have to agree on a standard ways of doing things to cut costs, and this will be the incentive to create a single incidence of major software licences (eg. Lagan, ORACLE, SAP, IBM etc.) and drive down IT costs.

Web self service will, of course, become the norm and the default channel for service delivery – the web as a ‘bolt on’ to existing and traditional ways of delivering service is not sustainable.

That in turn will force a fundamental shift in channels of delivery, service design and the way in which the customer for services (and the citizen – they are different) will expect to see services presented. True end-to-end self service will be essential if back office overheads are to be removed – the temptation to retain manual ‘checks and balances’ will be resisted as the costs become more critical than the risks.

Joint ventures between public service organisations will accelerate shared services. Many of the current barriers – regulation, bureaucracy, political and others – will need to be overcome in the interests of efficiency and improved public services. Many public service organisations will be forced to make rapid changes in this direction just to remain solvent, let alone to deliver joined up service delivery.

However, traditional outsource contracts of the past are in many cases not fit for purpose. They have failed to be sufficiently flexible, low cost or transformational. In the same vein, most traditional contracts for IT are 20 years passed their sell by date. We will need a fundamental re-think if a greater flexibility and added value from IT investment is to be achieved. The tired ‘client/contractor’ model just won’t stand up.

The number of IT service centres across the public sector must fall dramatically – computer rooms, service desks, professional teams and even heads of IT. This will not only bring about dramatic efficiencies but just as importantly, it will drive the deliverability of public service reform by making it easier to share information and to integrate teams. Whilst national consolidation will happen, the main emphasis will be local – across councils, health, public protection services and central government services delivered locally.

Source:http://www.egovmonitor.com/node/36753

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IT infrastructure outsourcing, multisourcing boosted by ITIL framework

March 12th, 2010

IT infrastructure outsourcing and multisourcing are tricky tasks for enterprise CIOs, but bringing the IT Infrastructure Library (ITIL) framework into the process can make large-scale outsourcing deals more palatable.

The Procter & Gamble Co., an $80 billion a year consumer-products company based in Cincinnati, with more than 135,000 employees in 80 countries, has gone through several rounds of IT outsourcing, starting in 2003.

“We were embarking on a fairly rapid global expansion, and we felt like we needed to have the capacity and capability to meet that global expansion and business expansion with IT infrastructure and application capabilities,” said Daryl Goetz, Procter & Gamble’s global IT Service Management (ITSM)/ITIL manager.

Seven years ago, the company decided to outsource a large portion of its IT organization, including infrastructure, networking and applications. The IT infrastructure outsourcing vendor, Hewlett-Packard Co., in Palo Alto, Calif., also took responsibility for support in those areas, including the replacement of applications and hardware and the development of new products.

Like Procter & Gamble, which launched its ITIL framework in 1997, HP is an ITIL shop, Goetz said, with equivalent levels of maturity.

“We’ve had a lot of success with ITIL,” Goetz said. “It’s a good foundation and capability for structurally having clear, defined process.”

That same year, Procter & Gamble also outsourced its HR applications to IBM Corp., and its on-site utility work to Chicago-based Jones Lang LaSalle Inc.

“While the [outsourcing to Jones Lang LaSalle] is not unique to IT, it gave us a touch of multivendor,” Goetz said. “Obviously, we had to coordinate among all of them.”

Foreseeing a further desire to diversify in the future, Procter & Gamble made a strategic decision to reexamine its outsourcing contract with HP after five years. When 2008 rolled around, “we decided that the network portion of that was a key driver to our globalization and our integration capability with our acquisitions, so we decided to look at re-outsourcing that portion to another vendor,” Goetz said.

Following a review process, Procter & Gamble chose British Telecom, now BT Group PLC, for its strong ITIL base, success in global networking and cultural similarities between the two companies.

Procter & Gamble’s CIO drove the ITIL-aligned multisourcing efforts, assembling a leadership team including the vice presidents of such key IT areas as global databases and infrastructure, a representative from financial services, and the company’s employee relationships director, among others.

“Anybody thinking about outsourcing, my very first requirement would be [to determine] how ready you are in terms of standard process across the environment you want to outsource,” Goetz said.

In drawing up IT outsourcing contracts with the various vendors, the team focused on integration, meaning the suppliers’ responsibility to integrate into Procter & Gamble’s existing culture and ITIL framework.

“The key to our success is integrating, not interfacing,” Goetz said. “Many of the struggles I’ve seen have [come from] setting up contracts and looking for suppliers in a very interfacing kind of design, versus an integration design.”

Procter & Gamble quickly learned it had to change its own internal measures of success — the “what counts” factors, Goetz said.

The leadership team worked with non-IT business professionals to understand their business objectives, then created an end-to-end IT infrastructure based on those objectives.

“There was a very direct alignment between the IT infrastructure and application environment and the business needs,” Goetz said.

Change management was also considered a crucial need in handling so many vendors, so Procter & Gamble developed processes related to cross-vendor integration points.

“With multiple vendors, we wanted just one flow chart end to end. We had to look at the places where the two vendors needed to work together, like change implementation,” Goetz said. “A single vendor cannot just feel it has the total authority to implement change … without communicating with the other vendors, and making sure not to disrupt other vendors’ success.”

Using manuals and having a process flow in place with clearly defined steps and integration points meant “vendors knew their responsibilities and understood how they worked collectively to both communicate and coordinate their activity,” Goetz said.

Goetz also advocated phasing in IT infrastructure outsourcing, focusing on in-process, business-focused measurements, and creating a plan for maintaining the currency of the company’s infrastructure, including determining how to pay for it and how frequently it will be refreshed.

Above all, avoid getting stuck in the middle of your various providers by establishing clear objectives, such as service-level agreements and measures of change management success, Goetz said.

“Probably our single greatest challenge is not being drawn into being a referee,” Goetz said. Following the firm’s previous multisourcing experiences, “as we brought British Telecom on board, we leveraged that knowledge and skill.”

Procter & Gamble is not alone in its effort to tap ITIL for IT outsourcing and multisourcing management.

Rob Whiteley, vice president and research director of infrastructure and operations at Cambridge, Mass., consultancy Forrester Research Inc., said that IT infrastructure outsourcing is on the rise, and enterprises are relying on ITIL to manage such relationships.

Last year, a Forrester survey of 56 global IT-infrastructure outsourcing clients determined that a growing number were turning to infrastructure outsourcing to free up cash and devote more time to using technology to enable the core business rather than more simple “keep-the-lights-on” IT functions.

“A lot of companies are trying to figure out how to continue making cost efficiencies,” said Whiteley, who is hosting Forrester’s Infrastructure & Operations Forum in Dallas March 17-18, at which Goetz will also speak.

In the past, many have lacked processes like ITIL to tackle outsourcing, especially multisourcing. However, Whiteley said, there’s nothing like a good crisis to force change.

“A lot of companies looked hard [over] the past 18 months at ITIL and Six Sigma [because of the economic crisis],” he said. Now that more companies have those process improvement methodologies in place, “we feel they’re in a [better] position to outsource than in the past five years.”

Source:http://searchcio.techtarget.com/news/article/0,289142,sid182_gci1419421,00.html

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Fujitsu focuses on dynamic infrastructures at CeBIT 2010

March 4th, 2010

At CeBIT 2010, Fujitsu presents an overview of the company’s solutions and services on the theme of “Dynamic Infrastructures for your Success”.

The focus is on Infrastructure-as-a-Service for Server, as well as a comprehensive portfolio of managed services.
Rackspace Managed Hosting

Five halls at CeBIT represent the enterprise, showing how customers from all over the world can use Fujitsu’s IT solutions and services to create competitive advantages for their individual businesses.

Hall 4: Dynamic Infrastructures for your Success

Plug and play IT – Infrastructure-as-a-Service for Server

In hall 4, Fujitsu presents Infrastructure-as-a-Service for Server (IaaS), the flagship Private Cloud Services offering for enterprises. With IaaS, companies can purchase server capacity as necessary via a flexible billing model.

The required hardware is stored in Fujitsu high security centres built especially for this purpose. Customers can chose an individual solution and configure it through Fujitsu’s Infrastructure-as-a-Service portal. The server resources can be accessed via a secure VPN (Virtual Private Network).

Managed services – comprehensive answer to dynamic IT requirements

Just in time for CeBIT, Fujitsu presents in hall 4 the company’s new service package, ManageNow, for efficient IT infrastructure administration in data centres.

The ManageNow solutions simplify and optimise daily processes in data centres using standardised administration of heterogeneous infrastructures and automatised administration of operating systems, software and databases for servers and clients.

The packages contain additional features for the ManageNow software, implementation services, maintenance and support. ManageNow supports Fujitsu’s IT infrastructure products as well as heterogeneous environments. Enterprises can use ManageNow to consolidate different administration and surveillance tools, benefiting from a seamless integration with popular administration solutions, fast implementation and a cost reduction of up to 65%.

Fujitsu’s Managed Workplace services have been designed especially for Windows 7. Managed Workplace can be used to administer PC workstations throughout the entire life cycle. This frees enterprises from daily routine tasks so they can concentrate on their core business. The service is based on customer-specific service level agreements; a price per workstation model guarantees maximum cost transparency.

Managed Virtual Workplace comprises comprehensive services with a focus on the administration of the entire virtual workplace infrastructure. Information Technology Infrastructure Library (ITIL) based services and options adapted to meet specific requirements guarantee customer satisfaction and increase productivity, flexibility, availability and security at the same time.

With Fujitsu’s own state-of-the-art Managed Storage offer, enterprises of all sizes can benefit from flexible data management, cost control and data security. Fujitsu administers storage solutions onsite as well as at its own data centres. Fixed costs are changed into variable costs and there are hardly any limits for extensive data growth.

Managed Server guarantees interruption-free server infrastructures. Proactive services such as Auto Immune Systems support automatic recognition and eliminate errors. At the same time, IT processes are immunised so business transactions are protected from interruptions.

Tape Virtualisation with ETERNUS CS800

Fujitsu also introduces the latest storage system in its ETERNUS family in hall 4. The ETERNUS CS800 is a ready-to-use storage solution with integrated deduplication, offering comprehensive data security within dynamic infrastructures. The solution is particularly suitable for medium-sized enterprises working with disk backup. Integrated deduplication reduces average capacity requirements for hard disks within the system by 90% and therefore helps reduce backup costs. The ETERNUS CS800 stores backup data in different locations throughout the company network, using deduplication. The required network bandwidth is reduced by at least 20%. The ETERNUS CS800 supports Symantec OpenStorage for Replication and Direct Tape Creation.

Hardware highlights: from Zero Client to server-star

With the first “real” Zero Client, Fujitsu presents one of the tradeshow highlights in hall 4 – tomorrow’s end-user device. The Zero Client is a frontend solution with all the advantages of a Thin Client – and even more. Designed as an intelligent display and available in 19 and 22 inches, the Zero Client comes with a single cable for power supply and LAN. It needs no operating system no processor, no applications, and no local data backup. The Zero Client merely establishes the connection to the virtual machine so there is no need for workplace management. This makes the “total cost of ownership” significantly lower than for the Thin Client.

Fujitsu also presents the latest additions to its notebook portfolio at CeBIT in hall 4. The new LIFEBOOK S710, for example, is equipped with Intel’s latest processor technology and offers excellent performance. At only 2.15 kilograms, it is one of the lightest modular 14-inch notebooks. The model offers integrated 3G/UMTS, WLAN and Bluetooth functionality. With a battery life of up to ten hours, it will last an entire working day without recharging. Fujitsu’s newest Tablet PC based upon the latest Intel platform, the LIFEBOOK T900, really stands out with its high processing power, multidirectional LED displays, and flexible electronic pen or multitouch operation.

Both LIFEBOOKS are equipped with Fujitsu’s Advanced Theft Protection, a modular security solution, which is also shown in hall 4. It especially caters to mobile users’ needs and offers maximum security for hardware and data; users can lock their notebooks in case of theft, erase sensitive data or locate the notebook and retrieve the notebook.

Fujitsu also presents a number of products in its current hardware portfolio – for example the fireball among its powerful PRIMERGY servers, the blade server BX900. Furthermore, client solutions such as the 0 Watt PC will be shown in action.

Hall 9: End-to-end solutions for the public sector

Federal and state authorities, municipal administrations and associations, universities and other public institutions are facing the challenge of balancing cost reductions and higher IT efficiency. In the Public Sector Parc in hall 9, Fujitsu and its renowned partners such as NetApp, Symantec, Brocade, EMC or CA demonstrate the capabilities of its powerful and energy efficient Intel-based infrastructure products, solutions and services. They will show how new supply and operating models within an “as-a-service” concept can change the IT in future administration models. Special topics such as secure eGovernment, Geo-Information, the White IT alliance or the new ID card or legally compliant online shopping offer plenty of issues to discuss for contracting authorities.

For the “Citizen meets The State” visitor’s day on Saturday, administrative solutions users once more take centre stage. The focus is on topics such as new forms of learning that integrate IT technologies, like the use of notebooks in classes.

Hall 15: Fujitsu’s premiere on Planet Reseller

This year, Fujitsu is represented for the first time at Planet Reseller in hall 15 booth F 15. The company uses the international gathering of the specialised trade to introduce tradeshow highlights such as Infrastructure-as-a-Service for Server, plus the latest additions to the client’s portfolio to the channel and distribution companies.

In the context of the new IaaS for Server offers, Fujitsu provides server capacities from its own data center on demand. At CeBIT, specialty retailers can test the new services themselves. For example, they can see for themselves how easy it is to provision new server capacities via the IaaS portal.

On Planet Reseller, Fujitsu shows a number of new products available through the channel program “Value4you”. Highlights are desktop PCs, notebooks, monitors and particularly the proGreen Selection.

Hall 8: Green IT

In Hall 8, Fujitsu is a partner at BITKOM’s Green IT booth – and presents its most important new developments in the areas of environmental friendliness and energy efficiency.

Environmental friendly and resource-conserving IT have played an important role at Fujitsu for more than 20 years. The green IT concept addresses singular aspects as well as the entire production process. For example, this means environmentally friendly materials are being used, or transport and packaging solutions are chosen to meet the best possible resource conservation conditions.

The “CeBIT green IT” – hosted by the hi-tech association BITKOM, the Federal Environment Ministry and the Deutsche Messe AG – offers Fujitsu an ideal platform to show its environmentally friendly concepts to tradeshow visitors and demonstrate, together with its partner Intel, how to implement environmentally friendly IT today.

SAP World Tour in hall 19

On the SAP World Tour in hall 19, booth 2.35, Fujitsu presents innovative dynamic It solutions and IT services for the SAP landscape. In more than 35 years of partnership and cooperation with SAP, Fujitsu has gained great expertise particularly in regard to service-oriented architectures with integrated virtualisation and automation technologies.

With time-tested solutions and services such as the FlexFrame for SAP, SAP BusinessObjects and the SAP Discovery System V4, Fujitsu nails the colours to the mast at the SAP World.

TDS at the CeBIT 2010

IT outsourcing, SAP services for medium-sized businesses and application management are the focus of TDS’ tradeshow appearance at the Fujitsu booth in hall 4 (booth E20).

Business Intelligence Packages for medium-sized businesses, tailor-made SAP offers for the process industry as well as for cosmetics and food manufacturers are only a few examples of the presented SAP solutions. Visitors also can learn more about medium-sized businesses at TDS and Fujitsu’s shared booth on the SAP World Tour (hall 19).

In the Public Sector Parc (hall 9, Fujitsu booth C60), TDS shows software and services for human resources departments. The portfolio includes the modular personal software TDS-Personal, as well as HR Business process outsourcing (HR BPO), covering all administrative processes in human resource management. This includes payroll accounting, travel expense accounting and applicant data administration.

Source:http://www.itweb.co.za/index.php?option=com_content&view=article&id=30986%3Afujitsu-focuses-on-dynamic-infrastructures-at-cebit-2010&catid=241%3Aservers-and-server-based-computing&Itemid=99

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The ROI on outsourcing your IT infrastructure

February 26th, 2010

Return on investment is a common term, often used by the companies and marketing heads to describe profit. However, many struggle to define it when it comes to compare in-house versus outsourced IT strategies. And, when it comes to IT, almost all enterprises outsource at least some of the IT resources and activities necessary to support business operations.

“Outsourcing” is the process of contracting with a third-party to provide a selective list of business activities. ROI is the key consideration when deciding whether or not to outsource IT activities. Hostway Corp., a provider of domain name registration, Web hosting and e-commerce, colocation, managed dedicated hosting, and more, said that the availability of competitive outsourcing products from a diverse set of service providers should result in significant opportunities for cost reduction and improved IT performance.

Today, there are a number of companies that specialize in outsourcing, and enterprises should exercise care when selecting the right service provider to meet their needs. In order to effectively outsource, the enterprise IT and executive management should perform an accurate assessment of the business objectives. And, then determine the IT implications, and tangible and intangible costs of meeting those objectives through in-house and outsourced strategies.

Hostway (News – Alert) officials said that the decision to outsource should be an objective and financially driven initiative. The decision should be made after assessing capital requirements, business and operational risks, and the value of maintaining the enterprise’s focus on core business activities and competencies.

The white paper, “Outsourcing your IT Infrastructure,” explains that significant ROI can be achieved by outsourcing some or all of a company’s servers and data center equipment. It talks about ROI in details, and discusses about a simple tool for analyzing the relative merits of some types of outsourcing. The paper also talks about the benefits of outsourcing. And, it contains factors to consider when exploring outsourced strategies.

Source:http://www.tmcnet.com/channels/dedicated-server/articles/76915-roi-outsourcing-it-infrastructure.htm

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Banks can make savings through virtualisation

February 6th, 2010

Among the many industries benefiting from new technologies such as virtualisation and cloud computing is the finance industry, with more banks across the UK seeing the advantages of outsourcing their IT infrastructure.

Banking on saving a net of £8 million from IT and energy costs, building society Nationwide recently announced it would work to virtualise 500 servers in its system. Savings for the firm will come from the consolidation of hardware assets by removing old hardware, and increasing the efficiency of existing physical servers.

Virtualisation – where multiple servers can be run off one physical unit – contributes to a lessened need for hardware space by companies. These initiatives also help to cut energy costs and contribute to a ‘greener’ approach to technology solutions.

As reported by Computer Weekly, the financial company has already consolidated an average of 12 servers onto each physical machine. Given this current rate, Nationwide should be able to whittle down its existing 500 servers to under 50, slashing its numbers by over 90 per cent.

“This reduction has not only saved space within the datacentre but has also significantly contributed to a decreased carbon footprint through a reduction in power and air-conditioning usage,” the company said.

The building society has inked a deal to move to SAP service-oriented architecture technology under a comprehensive £300 million transformation initiative to improve its business practices. Nationwide has also confirmed it will launch a voice and data convergence programme for its operations.

Nationwide has assets of over £200 billion as of April 2009 and over 13 million customers, and is the largest building society in the UK. By employing virtualisation solutions to such notable effect, it is expected to inspire other companies across the finance industry to look into the technology themselves

Source:http://www.rackspace.co.uk/rackspace-home/media-centre/news/article/article/banks-can-make-savings-through-virtualisation/?tx_ttnews[backPid]=63&cHash=0a9ebdd221

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