Blog Simplification, The CIO's Watchword

In its Trends report 2023, Insight stresses the importance of simplification, advising companies to work across functional groups to better understand inventory and costs. Marie del Marmol explains.

It's time to simplify. Marie del Marmol, Country Manager, Insight Belgium, repeats this over and over again. "Clarify, clarify, rationalize..." The pandemic has changed the socio-economic landscape beyond recognition, and as we continue to adapt to these changes, geopolitical turmoil has continued to turn the world upside down. Organizations are facing higher inflation, soaring energy costs, supply problems and ever tighter budget constraints.

Everything's changing. And fast. Proportionally, infrastructure costs are falling, while application costs are rising. For Marie del Marmol, it's no longer a question of cutting costs with an axe. "The status of the information system has changed. It no longer simply enables organizations to manage their business; it has become the engine that drives them forward. If it's a financial sinkhole, it's a handicap: it will have a direct impact on profitability, preventing organizations from developing over the long term..."

Oversizing, the number one source of cloud waste

As energy and equipment costs soar, CIOs are also faced with rising software and SaaS costs. This increase is not always immediately noticeable, because software licenses are rarely renewed each year, and many IT managers have relied on the cloud for volume purchases of services over 3 years or more. Cloud costs are becoming increasingly complex to track and understand, which also leads to unnecessary expenditure," notes Marie del Marmol. Oversizing is the number one source of cloud waste..." The cause is a lack of visibility over its use. 

According to a report by Anodot 2022, 44% of IT Managers believe that a third of their cloud spending is wasted. That's a lot of money. At the same time, it's no surprise. The cloud is a victim of its own success: people want more and more, even if it means they can't keep up with SaaS spending. 

"One way forward is emerging: FinOps. A four-phase cycle: assessment, information, organization and optimization. By working with specialized service providers, it is possible to assess the resources deployed, the financial strategy and the tools used. Recommendations can then be made, and an action plan drawn up to capitalize on what already exists, while optimizing governance and tools. The idea is to set up benchmarks for each resource and service in order to obtain a precise picture of consumption and costs. It is therefore important to be well-informed and to visualize the results, so as to be able to make the right decisions to optimize spending."

Cybersecurity in holistic mode

In cybersecurity, it's the issue of overlapping solutions that poses a problem. Too many solutions in use. In addition to soaring costs, this leads to real dissatisfaction among security managers: the operational inefficiency of a heterogeneous security stack, and a lack of integration, notes Gartner. The aim is to reduce the number of suppliers. The aim is threefold: to optimize functionality, reduce licenses and contain costs.

"Traditionally, cybersecurity has been seen as the department that always says no: an obstacle to innovation and progress," illustrates Marie del Marmol. This is the model that no longer works for them. 

Often, the architecture is too complex, disjointed and difficult to manage. It doesn't give companies the certainty of being protected against today's threats. Risks have been dealt with individually, one by one, which has become unmanageable and costly as these security controls often overlap, duplicating effort and functionality."

Clearly, there are security threats that lie between these individual solutions. This creates visibility gaps and can lead to threats going undetected.

"The time has come for organizations to simplify this process. If cybersecurity is seen as a holistic approach, supporting the way the organization works and making it easier to manage, the company will be more flexible when it comes to threats, but it will also be a driver of innovation and success."

The pandemic reveals governance shortcomings

For Insight, simplification is a key trend. The integrator demonstrates this in a study that focuses specifically on IT purchasing, resources, data sharing, networking and cybersecurity. It examines how collaborative approaches in these areas and between departments can lead to better decision-making, governance and flexibility.

Against this backdrop, the recent pandemic has revealed a number of shortcomings. We were able to pinpoint the proliferation of unconnected IT. Doors were opened with little regard for the coherence of the whole. Individuality took over. But we should have been aiming for the opposite. It's important for companies to work across functional groups to regain clarity on inventory and costs," says Marie del Marmol. Adopting a collaborative approach to reviewing and managing key business areas and services, rather than treating them as separate entities, will encourage better decision-making, better governance and, ultimately, make a company more agile."

Simplify purchasing, anticipate renewals

In fact, simplified processes that reduce inefficiencies in one area of the company will undoubtedly have a knock-on effect elsewhere. Increase efficiency, simplify IT purchasing," advises the head of Insight. Many organizations now support guided technology purchasing by users and large groups.

Applications have lagged behind, resulting in huge amounts of phantom IT spending and complicating tracking and management. By 2023, more companies will be looking to make it easier for these groups to access what they need, with simple systems that feature non-invasive controls and use intelligent triage to align purchasing with IT strategy.

Another purchasing trend driven by the economic environment is to anticipate renewals. Organizations want a simplified view of consolidated demand, so they can buy what they need.

"Having data from all IT departments, as well as legal and financial ones, facilitates decision-making and spending efficiency. That's what simplification is all about!"

Sharing data will make all the difference

The resources available to manage the volume and variety of IT purchases will be notoriously limited, warns Insight. Fewer resources and growing complexity. In 2023, the focus will be on the essentials. Companies will be looking for support in providing reliable data sources to drive purchasing at pace. Many, too, will be looking for help in interacting with suppliers.

Marie del Marmol advises: "Reduce waste and be concerned about data sharing. Poor data quality and availability leads to IT waste, increases risk and swells technical debt at the expense of the company's profitability."

More tips? Highlight actual consumption data for identified purchases. Inform IT security of older products and versions used, to help prioritize remediation activities. Develop knowledge of dependencies and interactions that can feed into migration, consolidation and modernization plans. Access reports and advice to help budget managers understand the causes of IaaS, PaaS and SaaS costs, and the opportunities to address them.

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Wondering how we can make your organization more simplified? Then check out our Simplification page!