You are here: silicon.com > Comment & Analysis

Comment & Analysis

Windows 2000: What's the real cost?

The launch of Windows 2000 is on the horizon and the inevitable Microsoft marketing machine is warming up. Companies may fall for the hype and push IT departments for action. All IT managers will have to do is explain why the upgrade will cost more than their colleagues ever imagined. Lisa Burroughes investigates

By Lisa Burroughes

Published: 1 April 1999 10:43 BST

One of the toughest questions any IT director has to face when a new operating system (OS) comes to market is how to cost-justify the investment the board. But with Windows 2000, IT departments may have a very different problem on their hands: stopping their business colleagues getting carried away with the hype and underestimating the real costs of a roll out.

At an Elite (Effective Leadership in Information Technology) group briefing in London recently, it emerged that some IT directors are looking at a move to Windows 2000 - but have realised the costs are greater than their business expects.

Clive Longbottom, analyst at CSL consultancy, claims Windows 2000 will be scaleable, secure and reliable - all alleged weaknesses of previous versions of NT - and so does offer real benefits. That message will be sold to business managers through the mainstream media. They may well be won over by the marketing spiel, and they will be going to the IT director to find out when their company is planning to upgrade - a welcome reversal of the normal patterns of behaviour.

But this will create problems of its own. Gillian Ferraro, IT director at the British Tourist Authority, pointed out that upgrading to Windows 2000 isn't just about the software itself. It's as much to do with the hardware and the network. "The demands on hardware become much greater, which means greater cost," she said.

Roger Marshal, IT director of City of London, added: "Making a business case for the increase in cost is getting more and more difficult."

The problem for IT managers isn't one of justifying the new OS; it's about explaining the need to upgrade PCs, servers and possibly the network. Without this, the full potential of Windows 2000 cannot be realised.

The onus is therefore on IT departments to produce a plan which incorporates all these elements - and explains them in business terms.

And perhaps this could be an opportunity to get backing for a few other items on the IT wish list. If you want to upgrade your network and/or hardware, use Windows 2000 as a lever. Your business colleagues may already be sold on the upgrade idea - all you'll have to do is explain why it'll cost twice as much as they read in their national newspaper.

Prepare for the inevitable pressure from business units to upgrade - and ensure that they're aware of the real costs. Otherwise two years down the line, when every spending limit has been broken, the allegations of IT being unable to keep within budgets and talk in business terms will gain even more credence.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

  • Jobs
SAP Netweaver Portal Consultant

SAP project environments Propose technical solutions to meet business requirements Design and develop Portal-based applications using SAP development ...

IT Manager Sales Specialist (Sales) - North East - Darlington

About the Person: - An experienced sales professional - Relevant experience in field based selling - Proven track record of delivering against ...

Data Centre Operations Technician (Hardware, Server, IT, Windows, Linux)

Please note: You MUST be eligible to work in the United Kingdom, and if successfully employed, you be subject to background checks which involve: ...

CIO50 2008
The silicon.com CIO50 2008 profiles the most influential and innovative tech chiefs in the UK across all industries and organisation size, from the biggest FTSE100 companies to high growth dot-com start ups and the public sector. The list was voted on by the UK CIO community and a panel of experts. Find out more in our latest special report.





Quick Sitemap Links: