How Red Hat Enterprise Linux Shrinks Total Cost of Ownership (TCO)

IT organizations face the constant challenge of juggling two almost opposing priorities: continuously delivering business-critical application services while keeping IT expenses in line with budget constraints. The primary function of IT departments is to supply core infrastructure and applications to attract new business, generate revenue, and facilitate profitability – and IT managers strive to meet this goal in spite of flat or shrinking IT budgets.
According to an article in Computer Weekly, approximately 80% of IT expenses are spent on maintenance and support for the existing infrastructure.1 Beyond maintaining current platforms and mission-critical applications, IT must also address new mandates, such as reporting requirements for regulatory compliance or corporate “green” IT initiatives. In addition, IT managers must allocate budget to tackle emerging strategic initiatives that are needed for future success.
By decreasing the total cost of ownership (TCO) for infrastructure systems, IT managers can potentially free budget dollars, re-allocating them to other essential or more pressing projects. The challenge lies in figuring out how to reduce TCO by increasing IT efficiency and driving down operational costs – or, to put it simply, how to do more with less.

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