Skip to main content

How Much Does Your IT Operations Really Cost?

Mohan Kompella

With the complex, dynamic nature of today's IT stack and the operational processes that support it, IT operations teams are finding they need to constantly grow their resources to manage all the moving pieces. This can get expensive … but how much are they spending?


The answer is often surprising. Complexity has made it hard to quantify how much excess resources are being wasted on simply dealing with new processes and challenges that relate to growth. Sorting through noise, filtering the signals that matter, recognizing and troubleshooting, sharing with distributed teams — all of these processes become more complex as organizations grow and environments modernize. AIOps solutions can help recoup some of these wasted resources — but how much? To understand the true cost of IT operations and the value AIOps can provide them, it helps to deep-dive into how key roles and processes in IT organizations have transformed, and how these changes are impacting the way IT operations teams need to operate.

Business Value Assessment

The key to understanding the actual cost of your IT operations lies in assessing the impact of several core metrics on your performance and processes. Along the way, you also identify where AIOps improvements can make the biggest difference and determine the actual financial value of an AIOps adoption project.

These are detailed in the following image:


■ Major incidents — their volume and MTTR help quantify your average service downtime — which basically means your Operational Efficiency.

■ Minor incidents — their volume, MTTR, and time spent on handling them — all amount to your Operational Performance in man-hours.

■ Incident management processes — determining the amount of time you spend on each of your incident management life cycle phases allows you to understand where the most improvement is needed.

■ The maturity of your tools and processes — allows you to identify how much you will need to invest in improvement through AIOps adoption, and how much value can be achieved.

■ Your headcount — identifying exactly how many people are involved in your IT operations, directly and indirectly, helps close the loop on Opex.

Closing the Gap: AIOps to the Rescue

AIOps de-risks digital transformation initiatives by allowing IT operations teams to handle the data and complexity that these transformations bring to the table. It does so by providing IT Ops with several capabilities detailed in the following illustration:


What are the quantitative values of AIOps?

■ AIOps gets rid of the noise. Whether it's multiple alerts stemming from the same problem, or a change that caused an alert storm, AIOps identifies and eliminates that noise before IT Ops spends time on it. Correlation, maintenance-based alert squelching both equate to fewer incidents. Typically, 50% or more of incidents are non-actionable noise.

■ AIOps helps quickly diagnose and identify the root cause of an incident. That means teams can start remediating sooner and with more certainty.

■ AIOps provides automation. That means everything from a unified ops console to automated incident workflow to auto-triggering of remediation actions. Overall, it means speed and accuracy for every incident dealt with or lower MTTR.

■ These benefits enable organizations to reclaim engineering time and put it to use on transformation initiatives. These also mean improvements to Service Availability.

Once you assess the actual costs of your IT operations and calculate the quantitative values AIOps can bring you — you can make an educated decision on where and how to improve.

The Latest

From smart factories and autonomous vehicles to real-time analytics and intelligent building systems, the demand for instant, local data processing is exploding. To meet these needs, organizations are leaning into edge computing. The promise? Faster performance, reduced latency and less strain on centralized infrastructure. But there's a catch: Not every network is ready to support edge deployments ...

Every digital customer interaction, every cloud deployment, and every AI model depends on the same foundation: the ability to see, understand, and act on data in real time ... Recent data from Splunk confirms that 74% of the business leaders believe observability is essential to monitoring critical business processes, and 66% feel it's key to understanding user journeys. Because while the unknown is inevitable, observability makes it manageable. Let's explore why ...

Organizations that perform regular audits and assessments of AI system performance and compliance are over three times more likely to achieve high GenAI value than organizations that do not, according to a survey by Gartner ...

Kubernetes has become the backbone of cloud infrastructure, but it's also one of its biggest cost drivers. Recent research shows that 98% of senior IT leaders say Kubernetes now drives cloud spend, yet 91% still can't optimize it effectively. After years of adoption, most organizations have moved past discovery. They know container sprawl, idle resources and reactive scaling inflate costs. What they don't know is how to fix it ...

Artificial intelligence is no longer a future investment. It's already embedded in how we work — whether through copilots in productivity apps, real-time transcription tools in meetings, or machine learning models fueling analytics and personalization. But while enterprise adoption accelerates, there's one critical area many leaders have yet to examine: Can your network actually support AI at the speed your users expect? ...

The more technology businesses invest in, the more potential attack surfaces they have that can be exploited. Without the right continuity plans in place, the disruptions caused by these attacks can bring operations to a standstill and cause irreparable damage to an organization. It's essential to take the time now to ensure your business has the right tools, processes, and recovery initiatives in place to weather any type of IT disaster that comes up. Here are some effective strategies you can follow to achieve this ...

In today's fast-paced AI landscape, CIOs, IT leaders, and engineers are constantly challenged to manage increasingly complex and interconnected systems. The sheer scale and velocity of data generated by modern infrastructure can be overwhelming, making it difficult to maintain uptime, prevent outages, and create a seamless customer experience. This complexity is magnified by the industry's shift towards agentic AI ...

In MEAN TIME TO INSIGHT Episode 19, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA explains the cause of the AWS outage in October ... 

The explosion of generative AI and machine learning capabilities has fundamentally changed the conversation around cloud migration. It's no longer just about modernization or cost savings — it's about being able to compete in a market where AI is rapidly becoming table stakes. Companies that can't quickly spin up AI workloads, feed models with data at scale, or experiment with new capabilities are falling behind faster than ever before. But here's what I'm seeing: many organizations want to capitalize on AI, but they're stuck ...

On September 16, the world celebrated the 10th annual IT Pro Day, giving companies a chance to laud the professionals who serve as the backbone to almost every successful business across the globe. Despite the growing importance of their roles, many IT pros still work in the background and often go underappreciated ...

How Much Does Your IT Operations Really Cost?

Mohan Kompella

With the complex, dynamic nature of today's IT stack and the operational processes that support it, IT operations teams are finding they need to constantly grow their resources to manage all the moving pieces. This can get expensive … but how much are they spending?


The answer is often surprising. Complexity has made it hard to quantify how much excess resources are being wasted on simply dealing with new processes and challenges that relate to growth. Sorting through noise, filtering the signals that matter, recognizing and troubleshooting, sharing with distributed teams — all of these processes become more complex as organizations grow and environments modernize. AIOps solutions can help recoup some of these wasted resources — but how much? To understand the true cost of IT operations and the value AIOps can provide them, it helps to deep-dive into how key roles and processes in IT organizations have transformed, and how these changes are impacting the way IT operations teams need to operate.

Business Value Assessment

The key to understanding the actual cost of your IT operations lies in assessing the impact of several core metrics on your performance and processes. Along the way, you also identify where AIOps improvements can make the biggest difference and determine the actual financial value of an AIOps adoption project.

These are detailed in the following image:


■ Major incidents — their volume and MTTR help quantify your average service downtime — which basically means your Operational Efficiency.

■ Minor incidents — their volume, MTTR, and time spent on handling them — all amount to your Operational Performance in man-hours.

■ Incident management processes — determining the amount of time you spend on each of your incident management life cycle phases allows you to understand where the most improvement is needed.

■ The maturity of your tools and processes — allows you to identify how much you will need to invest in improvement through AIOps adoption, and how much value can be achieved.

■ Your headcount — identifying exactly how many people are involved in your IT operations, directly and indirectly, helps close the loop on Opex.

Closing the Gap: AIOps to the Rescue

AIOps de-risks digital transformation initiatives by allowing IT operations teams to handle the data and complexity that these transformations bring to the table. It does so by providing IT Ops with several capabilities detailed in the following illustration:


What are the quantitative values of AIOps?

■ AIOps gets rid of the noise. Whether it's multiple alerts stemming from the same problem, or a change that caused an alert storm, AIOps identifies and eliminates that noise before IT Ops spends time on it. Correlation, maintenance-based alert squelching both equate to fewer incidents. Typically, 50% or more of incidents are non-actionable noise.

■ AIOps helps quickly diagnose and identify the root cause of an incident. That means teams can start remediating sooner and with more certainty.

■ AIOps provides automation. That means everything from a unified ops console to automated incident workflow to auto-triggering of remediation actions. Overall, it means speed and accuracy for every incident dealt with or lower MTTR.

■ These benefits enable organizations to reclaim engineering time and put it to use on transformation initiatives. These also mean improvements to Service Availability.

Once you assess the actual costs of your IT operations and calculate the quantitative values AIOps can bring you — you can make an educated decision on where and how to improve.

The Latest

From smart factories and autonomous vehicles to real-time analytics and intelligent building systems, the demand for instant, local data processing is exploding. To meet these needs, organizations are leaning into edge computing. The promise? Faster performance, reduced latency and less strain on centralized infrastructure. But there's a catch: Not every network is ready to support edge deployments ...

Every digital customer interaction, every cloud deployment, and every AI model depends on the same foundation: the ability to see, understand, and act on data in real time ... Recent data from Splunk confirms that 74% of the business leaders believe observability is essential to monitoring critical business processes, and 66% feel it's key to understanding user journeys. Because while the unknown is inevitable, observability makes it manageable. Let's explore why ...

Organizations that perform regular audits and assessments of AI system performance and compliance are over three times more likely to achieve high GenAI value than organizations that do not, according to a survey by Gartner ...

Kubernetes has become the backbone of cloud infrastructure, but it's also one of its biggest cost drivers. Recent research shows that 98% of senior IT leaders say Kubernetes now drives cloud spend, yet 91% still can't optimize it effectively. After years of adoption, most organizations have moved past discovery. They know container sprawl, idle resources and reactive scaling inflate costs. What they don't know is how to fix it ...

Artificial intelligence is no longer a future investment. It's already embedded in how we work — whether through copilots in productivity apps, real-time transcription tools in meetings, or machine learning models fueling analytics and personalization. But while enterprise adoption accelerates, there's one critical area many leaders have yet to examine: Can your network actually support AI at the speed your users expect? ...

The more technology businesses invest in, the more potential attack surfaces they have that can be exploited. Without the right continuity plans in place, the disruptions caused by these attacks can bring operations to a standstill and cause irreparable damage to an organization. It's essential to take the time now to ensure your business has the right tools, processes, and recovery initiatives in place to weather any type of IT disaster that comes up. Here are some effective strategies you can follow to achieve this ...

In today's fast-paced AI landscape, CIOs, IT leaders, and engineers are constantly challenged to manage increasingly complex and interconnected systems. The sheer scale and velocity of data generated by modern infrastructure can be overwhelming, making it difficult to maintain uptime, prevent outages, and create a seamless customer experience. This complexity is magnified by the industry's shift towards agentic AI ...

In MEAN TIME TO INSIGHT Episode 19, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA explains the cause of the AWS outage in October ... 

The explosion of generative AI and machine learning capabilities has fundamentally changed the conversation around cloud migration. It's no longer just about modernization or cost savings — it's about being able to compete in a market where AI is rapidly becoming table stakes. Companies that can't quickly spin up AI workloads, feed models with data at scale, or experiment with new capabilities are falling behind faster than ever before. But here's what I'm seeing: many organizations want to capitalize on AI, but they're stuck ...

On September 16, the world celebrated the 10th annual IT Pro Day, giving companies a chance to laud the professionals who serve as the backbone to almost every successful business across the globe. Despite the growing importance of their roles, many IT pros still work in the background and often go underappreciated ...