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Fujitsu Visit 2009 - How capital and budget constraints are shaping IT strategies

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Screen with writing: Joseph C. Puccirelli IDC Opex vs. Capex: How capital and budget constraints are shaping IT strategies The whole notion of financial management really speaks to the idea of dynamic solutions. Dynamic solutions are being driven by business imperatives. The technology is rushing to keep up with the business imperative. Now what we're gonna talk about is not the technology obstacles to dynamic infrastructure, but the organizational and the financial frameworks that perhaps present some obstacles. Just to give you a number, a number that surprises me every time I look at it, if you look at all capital equipment spending: I'm talking commercial aircraft, drill presses, all types of machinery, including IT, the rule of thumb in a mature economy is that IT spending is often between 35 and 45 percent of all the capital spending in a particular country. Part of our problem with IT is that we are not necessarily a very efficient user of business capital. Here in the EU, if you look at another option, that measures are an indicator of capital efficiency, only about 12 percent of all IT equipment is leased or financed. That's about half the rate of other types of industrial equipment. So the pressure, the challenge, to the IT professionals from the CFOs is how can you be as efficient in using your capital, as the manufacturing people are, or the production people are, or the logistics people are inside the organization? If leasing and financing was not available to you too, to finance your IT equipment what would be your next choice? And the answer was cloud computing, or utility type computing. Now many of you are thinking, well but that doesn't make sense Joe, because those offering are still not very mature. And the answer is 'You're right, they're still evolving in real time.' The point is, is that the business wants dynamic infastructure. The business wants time to market, and speed, and flexibility, and capital efficiency.

Video Details

Duration: 2 minutes and 21 seconds
Year: 2010
Country: United States
Language: English
License: Dotsub - Standard License
Genre: None
Views: 77
Posted by: christineward on Nov 1, 2015

Fujitsu Visit 2009 - How capital and budget constraints are shaping IT strategies
Feb 1, 2010 Retrieved from: ----- No changes have been made to the video except the addition of accurate close captioning. -----

Fujitsu Global

Joseph C.Puccirelli

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