IBM Systems Magazine, Mainframe - March/April 2014 - (Page 20)

IT TODAY Steve Mills, senior VP and group executive, IBM Software and Systems Money TALKS I f you need an expert on the economics of IT, there's no one better than Steve Mills, senior vice president and group executive, IBM Software and Systems. Mills has been with IBM since 1973, steadily gaining more responsibilities and bringing him to his current position where he sets the direction for more than 100,000 employees spanning software and hardware development, manufacturing, sales, marketing and support. In an industry that offers so many choices and often many mixed messages, it can be difficult to know what IT decisions will deliver the best economic advantage. Mills is focused on helping IBM clients get the most value from their IT spending. IBM Systems Magazine sat down with him to learn more about the economics of IT. Tami Deedrick is the managing editor of IBM Systems Magazine, Power Systems edition. Q: What value does IT bring to business? A: IT is all about the automation and optimization around business processes-the things companies must do to run their businesses as well as using IT as a strategic tool to provide better customer service, faster customer service and develop more insight about the markets the companies compete in. It represents a strategic advantage when used effectively to power a business both on an everyday basis as well as on a long-term forwardlooking basis. 20 // MARCH/APRIL 2014 ibmsystemsmag.com Q: What IT operating costs are rising? Are any decreasing? A: Hardware costs are going down. The hardware cost per unit of processing capacity has been dropping basically every year. The phenomenon of Moore's law, where price/performance doubles roughly every 12 to 18 months, has continued in all kinds of forms whether it's server capacity, server performance, storage capacity or the cost of storage. Networking doesn't generally come down quite as fast, but it's coming down at a pretty good clip, so the hardware side of the business has been dropping in price. Of course, what that implies is for every dollar you spend on software, you're going to be able to process more. So, generally, software prices or software budgets are not falling but what you get for the money certainly is rising. Labor costs continue to be the biggest single issue. Labor also accounts for the fastest growing element of IT. Businesses around the world spend considerably more on labor than they do on the combination of hardware and software, so labor costs are much, much higher than the asset costs PHOTOGRAPHY BY BILL BERNSTEIN IBM's Steve Mills on the economics of IT and cost-saving strategies http://www.ibmsystemsmag.com

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - March/April 2014

Table of Contents
Editor's Desk: Generation Z forges ahead
IBM Perspective: Celebrating 50 years of mainframe innovation
SHARE Outlook: The user group's value to the mainframe community
Partner PoV: Hosting virtual desktop on System z can decrease complexity and save costs
Trends: Automation Control introduces enterprise-class automated operations for smaller z/OS environments
IT Today: IBM's Steve Mills on the economics of IT and cost-saving strategies
Case Study: Money In The Bank: Isbank Turkey improves performance across the board by upgrading to the IBM zEnterprise EC12
Cover Story: Generation Z on System z: Rewarding partnerships and careers evolve from IBM’s Master the Mainframe contest
Feature: UBER-Competition: The Master the Mainframe World Championship tests the best and the brightest students on System z app-building
Feature: Making Giant Leaps: Advances in virtualization, Linux adoption and cloud deployments keep the mainframe at the top of its game
Business Partner Histories
Tech Corner: Robust compatibility is a cornerstone of the mainframe's staying power
Solutions: Abend-AID; SANSlide Series 150V7KSVC; Virtual Machine Backup 5.0; IntelliMagic Vision 7.0.0; SCM Accelerator
Stop Run: Computing museums reveal how quickly IT has changed
Reference Point - Global Events, Education, Resources for Mainframe
2014 Mainframe Solutions Edition Product Index

IBM Systems Magazine, Mainframe - March/April 2014

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