SOURCE: The Standish Group International

July 02, 2008 08:55 ET

Major IT Users Expect to Save $30 Billion While Spending $40 Billion; "Is This Any Way to Run a Business?" Asks Standish International's Jim Johnson

BOSTON, MA--(Marketwire - July 2, 2008) - "Spending $40 billion to obtain only $30 billion in savings is 'Alice in Wonderland' logic," said Jim Johnson, Chairman of the Standish Group International.

In a just-released TRENDS IN OPTIMIZATION REPORT from Standish Group, large IT user organizations are planning to spend $40 billion on optimization tools, skills, technology and services. Yet only $30 billion in savings is anticipated.

"The track record for the last three years for optimization products is dismal," Mr. Johnson continued. "Optimization has joined 'enterprise' as another overused IT buzzword. However, that does not mean optimization has no value -- but it does need a closer look and careful consideration."

The Standish definition of "optimization" is a complete approach that, when fully implemented, covers systems, people, process, applications and data -- in other words, the whole IT organization. The goal is to provide the best value for the highest level of service and function. IT optimization comprises procedures to make systems, applications, processes and people as effective and functional as possible, at the best possible value, with the least possible risk.

The Standish Group's TRENDS IN OPTIMIZATION REPORT identifies 10 optimization drivers. They are value, data center consolidation, services consolidation, readiness and mitigating downtime costs, virtualization, security, "going green," projects, staff, and service level/performance assessment.

The "Trends in IT Value" is based on DARTS (Demand Assessment Requirements Tracking Studies), Standish Group's world-famous CHAOS University Executive Seminar Series, and CENTS (Comparative Economic Normalization Technology Study) and other research instruments. The Standish Group's TRENDS IN OPTIMIZATION REPORT is available free of charge to Standish Group subscribers. Non-subscribers may obtain copies directly from The Standish Group at: for $1,000 per copy.

About The Standish Group International, Inc.

Since 1985 The Standish Group, the leader in spotting future trends, has been helping end users and vendors of technology solutions prepare for the future. The Standish Group delivers fast, consistent and reliable IT advice built on a solid foundation of primary research. For further information visit our website at:

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