IT professionals must drastically rethink the way they spend their budgets if their companies are to avoid obsolescence.
Delivering a keynote address at LinuxWorld Expo in New York Randy Mott, senior vice president and chief information officer at Dell, urged attendees to ensure that their company IT budgets are spent on new technologies, like Linux, rather than on maintaining existing legacy systems.
"Around 85 per cent of IT spending goes on keeping things as they are, only 15 per cent on innovation," said Mott.
Instead IT budgets should be invested in the future, he maintained. Up to 65 per cent of Dell's own budget goes on new development, he claimed; a figure that is up from 25 per cent three years ago.
Mott added that his goal was to increase the proportion further, to 75 per cent of his budget by 2005.
Dell has achieved significant savings in its own IT infrastructure by switching to Linux running on Intel-based clusters.
Last year the company replaced 14 Sun Solaris systems managing internal sales operations and databases with its own clustered servers running Red Hat's version of Linux.
By running Oracle 9i on the clusters, performance was up 89 per cent on the Solaris systems and had proved 41 per cent less expensive, Mott explained.
"It's hard to argue with the economics," he said.
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