When I was COO, IT/software engineering commonly reached out with requests like: “We’re running low on capacity and need another blade!” To which I’d think: “There’s goes another $400,000.” Like so many others, we had to continuously buy capacity to handle our growing peak periods – end of month, end of quarter, end of year, thousands upon thousands of concurrent sessions, seasonal fluctuations (like today’s BFCM).
As supply chain software evolved and businesses increasingly outsourced solutions, total cost of ownership shifted, alleviating not only the cost of hardware, software, and departmental headcount, but also some of the sunk costs already embedded in the enterprise, like the facilities, networks, security, administration, shared services, and so on. And yet, the accrual of systems and outsourced solutions found their own complexities and cost inefficiencies.
As supply chain software continues to evolve, so do the possibilities for running an efficient digital, global supply chain – especially one that simplifies how the IT landscape is managed at the lowest total cost of ownership.
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