IT Budget Cuts Worry Users, but Virtualization Hot

IT managers at Storage Networking World (SNW) this week said their budgets have been cut and they are concerned about the recession's impact on their departments over the next year. Even so, impromptu electronic audience polling indicated that they plan to bolster data security and roll out green technologies in 2009.

By Lucas Mearian

Wed, April 08, 2009Computerworld IT managers at Storage Networking World (SNW) this week said their budgets have been cut and they are concerned about the recession's impact on their departments over the next year. Even so, impromptu electronic audience polling indicated that they plan to bolster data security and roll out green technologies in 2009.

About 665 IT managers showed up for the event, about 8% fewer than last year, and it was clear that the economic downturn is on many minds. Of those who took part in a packed-hall electronic audience poll, 48% said they're somewhat worried about the slow economy's impact on their business and IT departments. Thirty-four percent said they are very worried about the recession, and only 18% said they're not worried at all.

Dave Burhop, CIO at the Virginia Department of Motor Vehicles, said his budget was cut 3% this year, a move that affected the number of contractors his IT department hires. This year, Burhop is staying with internal resources and asking IT workers "to suck it up and work the 12-hour days."

Burhop said he's also deploying VMware in his data center to reduce server sprawl from 3,000 boxes to 1,000. The center supports 100,000 state employees, and cutting down on the number of servers will save not only on floor space but power consumption as well.

Fully 50% of SNW attendees polled said their top challenge in storage management this year will be IT budget constraints. Twenty-three percent cited the complexity of managing their infrastructure as their biggest issue, while 16% pointed to reliable back-up and recovery solutions and 11% worried about reliability and availability.

M. Andy Hansen, principal engineer for IT and server operations at Herbalife International of America Inc., said his company's budget is flat this year, and the business is no longer allowing any "one-off" IT projects. All project requests must be submitted by October, with no add-ons allowed after that.

Herbalife, with a data storage infrastructure that's expected to grow from 250TB now to 400TB by year's end, is now evaluating storage virtualization vendors so it can pool legacy systems and new EMC Symmetrix and Clariion arrays, Hansen said. He's already rolled out server virtualization for the vitamin vendor's 700 servers, 140 of which are now virtual machines.

"We're doing a lot of virtualization and I know we're going to have a positive power impact because of that," Hansen said, adding that company is looking at a variety of ways to save money. "One thing our company has been doing is you have to bring your own cup to work now. There are no Styrofoam cups anymore. I was talking to the director of facilities and he said we save [US]$70,000 a year because we don't buy Styrofoam cups anymore."

SNW

More from IT Drilldown « Back to Virtualization
CASE STUDY
Disaster Can Inspire Quick Move to Desktop Virtualization
In the wake of a hurricane, a Texas hospital system's IT group overcame user reluctance to virtualize desktop PCs. Here's a look at their journey and the thorny little issue that Citrix just solved a few weeks ago: USB port support. Full Story »

Loading...
Virtualization Vendor Matrix

Find out what vendors offer the products you need.

View the Vendor Matrix »
Virtualization MarketSpace
Maximum Efficiency Gains with Virtualization
Learn best practices to optimize your infrastructure and operations department and gain the most from virtualization. Learn more »
Manage Virtualization Initiatives
Learn how you can better manage virtualization initiatives to recognize this technology's maximum value. Learn more »
 
SPONSORED LINKS
 

White Paper: Right-Sizing Your Power Infrastructure

Taking a Seat at the Executive Table: The Reality of Virtualization

Server Consolidation: Leveraging the Benefits of Virtualization

White Paper: 4 Customer Service Myths

White Paper: Managed Security for a Not-So-Secure World

White Paper: 5 Best Practices for Smartphone Support

White Paper: Next Generation Remote Infrastructure Management

Keeping Your Members Safe from Online Scams and Predators

The Total Economic Impact of Network Security Intrusion Prevention

Join us at the US-Brazil IT-BPO Summit, on November 10th in New York.

Increase UPS efficiency without sacrificing protection.

Learn how advanced forecasting tools can deliver significant business results for global corporations.

Lower IT Costs with Oracle Database 11g Release 2

White Paper: Visibility and the New Normal of Mobile Work

Taking the Service Desk to the Next Level

Learn about The Information Technology Infrastructure Library.

Top Five CIO Challenges

Streamline IT Costs. Boost Performance with WAN Optimization.

Want to know how you can maximize employee productivity?

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

A new fleet of PCs with a total ROI in 10 months. Find your ROI.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

Virtualization Technology as a Business Solution

Global Research: CIOs Weigh In On Virtualization

5 Key Virtualization Management Challenges

See how AT&T can help protect your network.

Webcast: Unleashing the Power of Customer Data

White Paper: Improve Agility with Operational Responsiveness

White Paper: Legacy Tools: Not Built for the Helpdesk

Secure Email and Web-Based Communication from Evolving Attacks

WagerWorks Takes Fraudsters Out of the Game using iovation

Seven Design Requirements for Web 2.0 Threat Protection

Generation Remote Infrastructure Management - Changing the Paradigm

Cloud-Based Email Management: Opinion Shifts In Favor

eBook: How Can You Make Your People Productive Anywhere?

Achieving Business Agility with Application Grid

Ready to virtualize tier one applications? Check your virtualization maturity.

Seven Ways ITIL Can Help You in an Economic Downturn

Tips for successful virtualization management.

Unified Communications: Thoughts, Strategies and Predictions. Join the discussion

Read the RSA report: Security for Business Innovation

Webcast: Looking to the Cloud for Email and Collaboration Services

64-page prescriptive guide to security, compliance, and IT operations.

Keep your IT expertise up to date. Join the Intel Premier IT Professionals.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

A Clear View Toward Virtualization

 
 
RESOURCE CENTER