Intelligent CIO LATAM Issue 22 | Page 53


A data centresized conundrum for CIOs : Cutting costs and evaluating TCO

Robert Hormuth , CVP , Architecture and Strategy , AMD , offers tips for CIOs to evaluate the total cost of ownership of data centre solutions and how they can generate efficiencies . He discusses why upgrading to a newer infrastructure is more cost-efficient as older systems can likely cost more in upkeep and energy .

CIOs with tightened budgets are faced with a data centre-sized conundrum . Where can they cut the fat while preserving essential services and investing in technologies that are essential to growing revenue ? One area that stands out on any budget sheet : data centres , given they are consistently one of the largest cost centres for IT and continue to grow .

In fact , core IT spending around data centre needs – systems , software , devices and IT services – is projected to account for nearly 70 % of total IT spend in 2023 , according to Gartner . That ’ s an increase of more than 20 % since a decade ago .
Of course , CIOs can ’ t just gut their data centre budgets . Their infrastructure – whether on-prem , colocation , public or private cloud ( or likely , some combination ) – is now critical to operating in the modern world . Data and compute are accelerating faster than ever before , thanks in part to the pandemic turning our lives even more digital , as well as the explosion of data and memory-heavy AI workloads . And CIOs must meet their mandate to ensure their workforce is armed with software stacks that are robust , better than the competition ’ s and , critically , agile for developers to build and deploy cutting-edge solutions .
That ’ s not to say bloat is better . As CIOs contend with what ’ s best for the business , their customers and their bottom line , there are areas in their data centres that may be overlooked for long-term growth and rightsizing . Several tips for CIOs to evaluate the total cost of ownership of data centre solutions and generate efficiencies include :
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