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The ZDNet Great Debate Series explored the proposition: IT Department: Cost Center or Profit Center?. Discussing the IT industry and how it can adapt and prove to be a contributor to a company's profit as opposed to just the cost of doing business.

The debaters, Juston James of TechRepublic and Dana Gardner of ZDNet, gave some great insights in to the problems facing IT departments. James taking the cost side explained that while it could be possible, many in the IT industry are not adopting a profit prespective which could find them struggling in this era of outsourcing.

The problem, as James points out, is "most IT departments consistently fail to deliver value." The days of setting up servers, intranet and company records databases are gone and there is a need for IT employees to stay in front of new technology. If the department is to bring profit to the company it needs to be aware of what is hot and how the new tech can be incorporated in to the company's approach.

My suggestion has always been to have IT listen to what the marketing and sales teams are asking for and have them forward any new tech these people come across as they interact with others in their industry. A good example is the installation of VOIP system for the company, early adopters saved their companies hundreds of thousands of dollars. Similarly integrating CMS with SEO abilities or developing platforms to promote affiliate marketing can be a huge source of profits.

Gardner points out that "IT must pick its first battles carefully... Or find a problem that impacts those tasked with business development and fix it or offer suggestions." In otherwords, move towards a collaborative effort. I have worked in situations where the IT department was an island on to itself and the introduction of new tech met a wall of denial. Marketers and sales teams need to explain the upside of such action. And "IT needs to proactively court those that are building the new business winners," Gardner added.

As a marketer I always try to bring the IT people in to the perks of meeting people at these new startups and sharing the swag from places like Google and others. Arranging intros to the engineering guys from Google won me a lot of points with IT.

The days of isolation for the IT guys is over and the companies that are having the major successes are those that are forward looking and will to explore new things.

The full debate is worth a read.

Edited by Kerry W: promoted to news

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Last Post by CimmerianX
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excellent thread...I dont believe that IT deparments are struggling for the time as with all new Tech it brings with it a feeling out stage with cloud and Virtaulistation has done...however there is no denying both these fields are they future of IT and I agree woth they article in that is important to stay ahead or simple fall behind and be left.

I am a cloud computing and virtualization consultant and can openly admit that it not for all business to adopt the cloud due to security reasons and legal reasons, however I do believe that companys will start to develop private clouds over they next few years I personally feel windows 8 will only be they start of cloud computing there is just no need to physically have so mny server anymore when they can all be run off one super server as it where.

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Marketers and sales teams need to explain the upside of such action. And "IT needs to proactively court those that are building the new business winners," Gardner added.

WTF? Marketers and Sales Teams have NO BUSINESS telling IT what tech they need to implement. Anytime a marketer has ever told me 'we need to move into the cloud' I'll look at him dead on and ask why. Then watch as he struggles to come up with an answer other than 'because I heard its the cool new way to work".

The cloud storage is just 1 tool in the IT toolbox. The cloud is not the end all solution for every problem.

Local Virtualization is a must have for maximum ROI on hardware. But public clouds should be used sparingly and only for very specific solutions.

Edited by CimmerianX

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