One of my friends used to own a sandwich bar. He knew the exact profit margin on each product. He knew the impact of a price change from one supplier on each of the products he sold, as well as the overall affect on his profits.
So compare that situation with your average IT department, where to be frank, nobody has a bloody clue about costs. Yes, we all know the headline grabbers like licensing cost for Oracle and you can probably find the bit of paper that tells you the yearly hardware maintenance fee, but I’ve not encountered many companies that have a handle on the real cost of projects. If a company can’t say, “Project X cost £Y to complete and costs £Z a year to maintain and this is the breakdown of costs”, with a reasonable level of accuracy then they’ve failed.
Easy reading for you today folks and literally couple clicks to vote. Cheers!