Study: IT Decentralization Increases Total Technology Costs

Over 64% of IT executives surveyed believe that IT decentralization has increased total technology costs, according to a new report published by The Economist Intelligence Unit (EIU).

“The IT Archipelago, the Decentralization of Enterprise Technology,” report sponsored by VMware reveals that over 40% of IT executives believe that technology decisions are being decentralized, with increasing control taken by business users. Business users say the primary reason is that new technologies require business knowledge and expertise (28%).

The resulting fragmentation of technology is creating complexity and duplication, thereby increasing the complexity of operations and vulnerability to cyber-risk.

The move to decentralize challenges enterprise collaboration, according to 60% of IT executives. IT decentralization also increases the vulnerability of the firm to cyber-attacks, according to 66% of respondents.

“IT executives believe that their inability to respond quickly to business users’ needs is the primary driver of decentralisation,” says West Coghlan, the editor of the report.

“Business users say the most important reason is that domain expertise is required to make technology decisions that affect their business. The consequence of both of these factors is an emerging complexity that is having a real impact on operations and vulnerability to cyber-attack.”

With three out of four business users authorizing their own devices, and approximately half building their own apps and cloud networks, we can only expect these challenges to grow. 

 

 

 

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