IT Cost Optimization(Focusing on ERP)
Definition of Optimization• Spend less on IT anddeliver more value tothe business.ITExecutives• Spend more on a newproduct...
FACTSBUDGET AND EXPENSE:Maint.Human
FACTSBUDGET AND EXPENSE:20%80%BUDGETRunning ExistingIT SolutionIT Enhancement
FACTSThe Biggest Expense of the 80%:20%60%Annual Maintenance Contract and Depreciation
Most Expensive AMC are Software:100%DP +AMC80%DP +AMC60%DP +AMC40%DP +AMC0%DP +AMC1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr.2...
Most Expensive Software is ERP:
BUSINESS VALUE of ERP Maintenance:1st Year2nd Year3rd YearAfter(3)YearsMin.BusinessVALUEEnvironment is stabled.All functio...
SUGGESTION FOR OPTIMIZATION:
SUGGESTION FOR OPTIMIZATION:Start the negotiation early.Consider 3rd party support as anoption.Give the vendor customizati...
SUGGESTION FOR OPTIMIZATION:“SaaS” Software as a Service“IaaS” Infrastructure as a Service“PaaS” Platform as a ServiceClou...
It’s your TURN!!!
ThankYou!Sukriah!Shukran!Gracias!
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Imad Sweidan, CIO at Almansoori Specialised Engineering - Cost optimization on software / ERP maintenance

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Imad Sweidan, CIO at Almansoori Specialised Engineering spoke at the CIO Middle East Event April 2013

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Imad Sweidan, CIO at Almansoori Specialised Engineering - Cost optimization on software / ERP maintenance

  1. 1. IT Cost Optimization(Focusing on ERP)
  2. 2. Definition of Optimization• Spend less on IT anddeliver more value tothe business.ITExecutives• Spend more on a newproducts to show ITvalue to the business.Vendors
  3. 3. FACTSBUDGET AND EXPENSE:Maint.Human
  4. 4. FACTSBUDGET AND EXPENSE:20%80%BUDGETRunning ExistingIT SolutionIT Enhancement
  5. 5. FACTSThe Biggest Expense of the 80%:20%60%Annual Maintenance Contract and Depreciation
  6. 6. Most Expensive AMC are Software:100%DP +AMC80%DP +AMC60%DP +AMC40%DP +AMC0%DP +AMC1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr.20-25%CAPXOPEX60% expense – after depreciation period, the asset value becomes zero. You stillcontinue paying maintenance (20-25%) on original value of the investment.
  7. 7. Most Expensive Software is ERP:
  8. 8. BUSINESS VALUE of ERP Maintenance:1st Year2nd Year3rd YearAfter(3)YearsMin.BusinessVALUEEnvironment is stabled.All functions are already available.Most of the time, technical support /resolutions from AMC are notsatisfactory.Min.
  9. 9. SUGGESTION FOR OPTIMIZATION:
  10. 10. SUGGESTION FOR OPTIMIZATION:Start the negotiation early.Consider 3rd party support as anoption.Give the vendor customizationoptions.Contact “Forum”
  11. 11. SUGGESTION FOR OPTIMIZATION:“SaaS” Software as a Service“IaaS” Infrastructure as a Service“PaaS” Platform as a ServiceCloud DR “Disaster Recovery”
  12. 12. It’s your TURN!!!
  13. 13. ThankYou!Sukriah!Shukran!Gracias!

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