Effective management of IT assets, vendors and contracts yield an enterprise that is better managed, more flexible, more cost-effective, more accurate and more efficient in delivering its mission. IT has a much clearer understanding of its capabilities and how to apply them.
On the other hand, those lacking this live in a perpetually murky state. Decisions are made anecdotally, mistakes are more frequent, recovery from mistakes is less certain, change is slower and major projects are on a shaky foundation of poor asset knowledge.
Effective asset, vendor, and contract management can pay for itself in hard cost savings every year, but perhaps more importantly - it is key in rationalizing and simplifying the software portfolio by giving IT knowledge of the true use of the applications.
Software, hardware, and infrastructure are being replaced by “as a Service” providers. This makes IT vendor and
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