In sports, when looking at the record books we often find that most of the records are held by current players. In most cases this get attributed to the fact that the games change over time and certain elements are emphasized over others. Maybe it’s passing over running in football, home runs instead of stolen bases in baseball, or dunks over jump shots in basketball. Whatever it is, we eventually accept that the new approach to the game is going to lead us to viewing measurements differently.
For some reason, that same mentality doesn’t seem to apply to changes in how we leverage IT technologies to drive our businesses. While we now live in a world where change happens at 2x, 3x and sometimes 5x what it did in the past, but we’re still using measurements that are centered in a world where IT is primarily focused on keeping the operations running and keeping the costs down. Measurements like Return on Investment (ROI) and Total Cost of Ownership (TCO) are primarily focused on upfront costs of equipment or a level of labor that is often ignored after the initial ROI calculations are complete. But what happens when a new system is able to take on orders of magnitude more work them previous systems, which often happens with server virtualization projects, so IT handles more capacity? Do ROI and TCO really account for that increased productivity properly? Read More »