CMDB ROI Comes From The Basics

Report documents precisely where, when and how ITIL CMDB guidance can help IT organizations realize cost savings

[ClickPress, Wed Jan 31 2007] A report published by itSM Solutions claims having a CMDB does not deliver a return on investment. According to report author Hank Marquis, “A CMDB does nothing by itself. The benefits come not from having a CMDB, but from using the knowledge a CMDB organizes.”

The report details an actual case study of a City government that identified $180,000 in monthly cost reductions and avoided a $600,000 networking hardware purchase order by using a tool that federated systems management information and produced utilization and availability metrics. Marquis claims the City government identified the savings within 30 days.

While indicating that database federation was key to this projects success, the report outlines how it was the use of the knowledge organized by the CMDB software product that allowed IT managers to identify, quantify and then realize the cost reductions.

Marquis describes cost reductions from bandwidth consolidation, idle asset reallocation, vendor rebate discovery and vendor consolidation. Marquis says “It isn't sexy, but it is real money. And without the CMDB software to consolidate all the data the City would never have been able to see the 'trees for the forest' and would not have realized the amazing benefits.”

The report details the techniques used by the City. Marquis writes “The CMDB did not do this for them. It was their use of Service Level Management to establish thresholds and targets, Capacity Management to monitor resource utilization, and Availability Management to monitor vendors performance. However, without a CMDB they could not have pulled everything together as they did. And they didn't have 'mature' Availability, Capacity or Service Level Management either. They initially implemented only as much as they needed to obtain their ROI – per their plan.”

About the Author:
Hank Marquis is a software industry pioneer with expertise in development of network and systems management platforms, database systems, and knowledge management/expert systems. He combines his software expertise with over 20 years of practical hands-on experience managing, organizing, and optimizing IT infrastructures and organizations. Hank holds the ITIL IT Service Manager certification with Distinction in Service Delivery. He is the author of two books on software development, and “How to Succeed with ITIL”, published by the Nichols Kuhn Group.

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If you’d like more information about this topic, or to schedule an interview with Hank Marquis, please call Tammy Lyons at (617) 264-0946, email tammy.lyons@itsmsolutions.com

A published copy of the report is available at:
http://www.itsmsolutions.com/newsletters/DITYvol3iss5.htm

Web sites for further information:
itSM Solutions website: www.itsmsolutions.com
Hank Marquis website: www.hankmarquis.com

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