The report doesn't detail precisely where the savings come from, but it's a safe bet that they come from reduced investments in storage and server equipment; lower energy bills thanks to decreased demand for electricity and cooling for the server room; less spending on paper, ink, postage, transport, and file storage (through document management); and more efficient use of man-hours, thanks to having fewer machines to administer, fewer physical documents to handle, and in the case of cloud computing, fewer apps and services to manage.
These investments are demonstrably well-suited to address what respondents deemed the greatest sources of inefficiency in their IT departments: 36 percent identified outdated processes and 35 percent point to outdated technology. "Lack of budget" and "lack of staff knowledge" represented the third and fourth most significant sources of inefficiency.
Technology investments alone aren't sufficient to yield efficiency gains, the report notes. Respondents said that in order to maximize efficiencies, they've had spend time educating upper management about IT; lay out long-term plans for updating technology; change organizational culture to encourage and support efficiency; and develop and update processes and procedures accordingly.
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