HP Transforming IT Ops
Even with the economy in a fierce downturn, HP CIO Randy Mott preaches a high-risk, capital-intensive approach to transforming IT operations. But will other CIOs follow his lead?
December 2, 2008
By Chris Murphy, InformationWeek, December 1, 2008, 10:40 AM
Randy Mott's telling an incredibly persuasive story. Hewlett-Packard Co. (NYSE: HPQ)'s CIO is laying out the results of a three-year journey by his team to transform the way it builds, delivers, and manages the technology that runs HP, and the results look impressive: triple the bandwidth at half the cost; 70% of employee time spent on new development with just 30% on IT support; 85 data centers consolidated to six; 700 data marts to fewer than 55; 6,000 applications to about 1,500.
In rough numbers, HP spent about $1.7 billion on the IT transformation, including construction of six new data centers. At the same time, it cut ongoing IT spending from 4% of revenue three years ago to just under 2% today, generating about $1 billion in annual savings. What CIO wouldn't love to have those numbers to tout?
Yet all I can think, as I sit at an HP event at a Miami resort, surrounded by HP customers who've come to learn what Mott and his team are up to, is this: Will even one CIO in the audience follow his advice?
Find out at InformationWeek
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