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Companies waste more than $100,000 a year on redundant IT

Companies waste more than $100,000 a year on redundant IT

Rackspace claims added pressure from the boardroom, poor ROI and outsourcing experiences are also key themes

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Companies waste more than $100,000 a year on redundant IT: Rackspace

Companies waste more than $100,000 a year on redundant IT: Rackspace

IT departments across A/NZ are spending big on redundant technology. In a recent study commissioned by Rackspace and conducted by deciBel Research, it found that one in ten companies wasted more than $100,000 a year on redundant IT.

The survey, which polled 252 IT decision makers across A/NZ, also found 13 per cent wasted $50,000 to $99,999, and 25 per cent wasted $10,000 to $49,999 a year on redundant IT.

Added pressure from the boardroom, poor ROI and outsourcing experiences are also key themes contained in Rackspace's research. It found 43 per cent of respondents have experienced executive pressure to implement technology, even though they personally believed it was too risky for the business.

But it’s not just the technology that is under performing. It also found 54 per cent of all surveyed businesses, and 77 per cent of medium sized businesses surveyed said they employed a member of staff in the IT team, only to realise after the fact, that they were a bad hire.

Rackspace A/NZ director and general manager, Angus Dorney, said in a crowded market where new technologies are released at such a rapid rate, the modern day choice has become less black and white than it was a decade ago.

“It can be difficult to forecast if a purchase is going to deliver on its promise to provide your business with sufficient ROI. In some cases, this research shows that a lot of technology is purchased and never used,“ he said.

Dorney added businesses should do the ground work to have the foundation they need for a swift and seamless implementation, and in selecting the right technology for business needs.

“Helping to ensure you’re making the right choices when it comes to technology can come down to doing your research, taking the time to do an in-depth comparison of the available offerings and consulting reputable and experienced providers,” he added.

Other findings from the study include:

  • 73 per cent of survey respondents reported making a poor purchasing decision, with 33 per cent purchasing software and 29 per cent purchasing hardware that didn’t deliver what was promised to the business.
  • 32 per cent of them invested in software and 31 per cent investing in hardware that became irrelevant within the intended lifespan.
  • 45 per cent of survey respondents said they believed they were more likely to make a poor technology decision now, than they were ten years ago.
  • More than half (57 per cent) of survey respondents have had a negative outsourcing experience from an IT service provider.
  • 88 per cent of survey respondents reported having learned important lessons from regretful decisions.

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Tags ITfindingredundantstudyspendingrackspace

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