The recession is raising consciousness, for example, about just how much money is being spent on IT maintenance and support.  As the role of IT has expanded within organizations, starting with pure data management, then moving on to information management, and then strategic knowledge management, maintenance and support costs have also expanded to consume a staggering 70% to 80% of IT budgets, according to Forrester Research.  It’s not uncommon for companies to own a multitude of data centers and hundreds of servers. 

One way to look at this problem is to simply acknowledge that this is the inevitable trend. But, the other way to look at it is that the cost-saving opportunity here is huge.  There is no question about the fact that adopting a managed services approach can save the organization significant amounts of money, because you are giving over day-to-day maintenance and support responsibilities to a firm that can take advantage of the economies of scale that come with being in the business of managing technology for a multitude of organizations.

The transition to managed services has been understandably difficult for many organizations to embrace.  First of all, it is big change, and change brings up the very natural and appropriate attention to risks.  Are there security or privacy risks, for example?   

As it goes with technology, however, continuous improvements have been made to ensure that the organization is not putting itself at risk with the transfer of IT maintenance and support to an outside partner.  The solutions have been baked in to ensure that your data is perhaps even more secure with an outside vendor that provides managed services for a living.  The risks have been addressed…and managed services should enable you to provide even more proactive and preventive support than can be provided internally.  This is because, to be a player in the managed services business, a vendor must have state-of-the-art equipment, processes and practices, all across the board.

And think what you could do with the budget freed up for more strategic work.  Your organization definitely needs to make the best use of the “I” in your “T,” but it does not need to have the “T” maintained and supported internally, at a cost that, almost invariably, far surpasses what can be provided by an external vendor. It’s the 21st century, and you now have a higher strategic calling.  Your organization needs you to free up dollars to invest in strategic innovations that improve the financial position of your organization, better serve your customers and, if yours is a commercial enterprise, give you a differential advantage.

You just have to hear it to appreciate the intensity of his conviction regarding the need for change in how information technology is managed in higher education!  Here is the link to listen to Adrian’s presentation – 73 minutes of transformative and energizing thinking about what the future can hold for institutions that embrace change!  Adrian paints a clear vision of the path that can lead to enhanced learning and educational value through a restructuring of the technology environment – in keeping with a strategy that separates “the core” from “the context.” 

Much more cost effective strategies exist today for maintaining “the context,” – meaning the software applications that have become mere commodities that are essential but not differentiating – than are currently being utilized by the majority of universities.  When they are employed, budgets can be reallocated to take advantage of the host of “core” technologies that facilitate collaboration, informed decision-making for stakeholders, and learning…with the agility to embrace the new and upgraded technologies as they continue to emerge onto the scene.

CUNY enrolls 400,000 students and, with all of its 10,000 faculty members and employees included, has about 500,000 people moving through the campuses of its 23 colleges in New York City every day. CUNY occupies 29 million square feet of real estate and consumes 1% of the city’s entire energy load. The system is huge and, right now, it is embarking on changes that will make a huge impact on the environment. The goal is to reduce the institution’s carbon footprint by 30% by 2017.

From an IT perspective, CUNY is changing out all legacy systems and deploying Oracle/PeopleSoft as its base for gaining efficiencies and reducing energy usage. But that is only a small part of the plan. It’s comprehensive, with high participation across all campuses. From the sound of it, the initiative is extremely well orchestrated and no stone has been left unturned.

Check out the CUNY Web site to learn more. You may also be interested in checking out their October 30, 2008, Sustainability Conference. CUNY is committed to minimizing its ecological impact and investing the resources to “construct, retrofit and maintain more sustainable facilities,” and they want to share ideas to ensure success. In addition to the October 30 conference, CUNY is forming an advisory board consisting of a broad spectrum of industry leaders from financial services and utility companies, as well as the “new green industry.”

We’re impressed with this undertaking and wish CUNY the highest degree of success. The road to sustainability will certainly require a sustained effort, and it sounds like they have put the foundation in place to move their enormous and highly complex institution successfully along the path toward their vision. GO CUNY!