After shifting from lease to purchase of IT infrastructure and software licenses, an enterprise has to pay for unexpected lease extensions causing significant cost overruns. The BEST direction for the IT steering committee would be to establish;
Dude, I'm just glad I'm not on that IT steering committee. Sounds like they've got some serious work ahead of them. But hey, at least they've got a chance to learn from this experience, right?
Haha, I bet the IT steering committee is regretting that lease-to-purchase decision right about now. A TCO policy is definitely the way to go to avoid these kinds of surprises in the future.
Budget cuts? Really? That's just a bandaid solution. We need to establish a policy to review financial decisions and ensure we're considering the long-term costs.
The end-of-life program is a good idea, but it doesn't address the root cause of the cost overruns. We need to look at the total cost of ownership for new investments.
Teri
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