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Thursday, June 7, 2012

IBM Will Cut Internal Software Again

IBM decided that it’s wasting too much money running too much software on its internal networks. Although the company has already cut the amount of software it runs on its internal systems by 70%, the IBM’s director Jeanette Horan believes that they need even more consolidation.

If you can’t imagine the size of the IBM’s problem, you should know that before the consolidation effort it was using 16,000 applications, and has since cut that number to only 4,500. However, the CEO of the company has told her IT department to cut the remaining applications to 2,250 by the end of 2015. Jeanette Horan explained that the best solution is to have common global applications within all business units.

Currently there is no global process, but rather plenty of different systems in various countries, which is now becoming a problem. The matter is that today more and more companies move onto the cloud and therefore duplication becomes more and more obvious.

Of course, the suits in the company were quick to develop a process, with plenty of flow charts, to tackle the software problems. They also issued a memo which explained the need to get rid of most applications. As you can understand, the application consolidation team would sooner or later point to duplications. After this, the business unit will be officially told the cost of upgrading and supporting all the apps. Finally, the application reduction is expected to be framed in the overall context of the strategic goal…

Despite of all the complexity of the entire process, the company estimated that it has saved around $1.5 billion in result of application and data centre consolidation projects within the past few years and is going to save more with these plans.

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