What We Can Learn From The Last Recession

The high technology industry is perpetually in a state of reinvention.  Leaders and decision makers must be willing to embrace this environment in order to be successful.  However, now more than ever is the time to embrace the “change” mentality.

Why?  As decision makers assess ways to right-size their operations, technology, a cost center, is frequently near the top of the list for budget modification.  This spotlight on technology budgets creates pressure on vendors to make their products and services more effective.  Therefore, as opposed to simple cut-backs, savvy leaders and technology professionals demand investments in new processes and technologies to create the savings necessary, while increasing efficiency and performance.

Let’s frame this by looking at the recession of 2001.  Arguably THE most important information technology innovation that occurred during these years related to remote support and connectivity.  The outcome?  Technologies like Voice Over IP (VOIP) telephony substantially reduced the costs associated with calling, particularly overseas.  Remote connectivity software empowered IT support departments to resolve issues without leaving the desk, reducing overhead and resolution times to a fraction of what they previously had been.  These innovations spurred the wide scale adoption of the overseas call center, and although controversial, the result without a doubt achieves the objective of a reduced cost of operating and a sustained level of service to the consumer.

Ask a technology professional today what major innovation of the 2008-2009 recession will be remembered as the most important, and you will get a variety of answers.  Let’s take a brief look at two such innovations with great potential and what these can do for your business.

Cloud Computing - Cloud computing involves the migration of computer networks, into a centralized location, called a data center.  The investment in a centralized infrastructure allows businesses to acquire higher power, more reliable, and more redundant systems.  Also, outsourcing the network in its entirety to a third party presents a unique opportunity to normalize costs.

Sustainability - For most businesses, computers and the associated technologies that support them are one of the greatest consumers of power, along with lighting and HVAC systems.  Improvements in low power devices and power management systems enable business to cut power consumption substantially.  Don’t pay your own power bill?  Watch out – with the escalating cost of power and immanent potential for regulation, some landlords are renewing rental agreements net of power costs.

Even though we are technology consultants, ANALYSYS engages in an annual evaluation of how we employ technology for ourselves, and we look at how we can improve.  In 2009, we engaged in both the Cloud Computing and Sustainability initiatives and experienced tremendous success.  The result was a 50% reduction in internal IT support staff, allowing those personnel to be repurposed to technology consulting initiatives, and a 52% reduction in power consumption.