Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

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

514 views

Published on

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

Published in: Technology, News & Politics
  • Be the first to comment

  • Be the first to like this

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!

×