What we did then this year was a follow-on study to that study last year, and asked -- have the organizational politics around grid become more or less prohibitive this year versus last year? And the finding was in the study that 43 percent -- and this was of a new group of CIOs, some 100 CIOs that we surveyed -- said that it was less prohibitive. Forty-three percent said that it was less prohibitive, 14 percent said it was more prohibitive, and 43 percent said there was no change. For those that said it was less prohibitive, they emphasized the reasons why the barrier or the politic is coming down is that there’s greater awareness and emphasis on grid and understanding of it at the executive level. It’s a business decree: thou shalt do it. And they do it. And other parts of the thing companies are starting to understand is that using grid actually breaks down the barriers between the businesses and the silos and gives people more access, not less access, to the resources.
InfoWorld: What do you see as the major benefits of grid?
Baird: Grid offers a variety of significant benefits. On the bottom line profit enhancement, we’re talking about taking IT capital expenditure reductions and IT operational expenditure reductions. So you’re taking cost out of the equation. On the flip side, and offering a much bigger ROI, is the top-line revenue enhancement, and this is when you are using the grid technology to accelerate the time to discovery -- you are accelerating and improving business processes and operations, you are enhancing applications and the way that those applications perform such that the time to discovery, the time to result, the outputs are done in a more often systematic, effective, and obviously more shortened timeframe.
And if I take this a little further, with our clients we have done a deeper dive to understand the kind of net grid impacts that people are seeing on average. Typically we see with our clients, they’re telling us this, that they reduced hardware and software capital spending by between 20 and 40 percent after deploying a grid. That relates to the annual cost of the server, etc. They also reduce or reallocate an IT admin headcount fully loaded with compensation and everything in there of between five and 10 percent. And then they also reduce IT operation spend, the annual cost per server, as it relates to the support costs and the percent of the asset use and the plant and equipment cost reduction. And they are seeing between 20 and 30 percent typically after deploying grid technology. That comes from the bottom line.
You go to the top line then and the metrics change somewhat, and you’re talking about the ability to deploy a new application faster, so to get a system up and running and a new way of doing things in a shorter period of time. Then you go to things like increasing the job or work or transaction throughput, and this is the ability to do -- generate more income from additional work output or potential revenue from faster time to results or time to market. By increasing their work or job throughput or their transaction throughput, they get these significant gains. They are typically seeing between 10 times to 25 times, on average, increase in job or work or transaction throughput.