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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.

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For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

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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

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

For years, DevOps teams operated under a simple assumption: collect enough telemetry, and you can find and fix any problem. That assumption is breaking down. Modern enterprises now operate across microservices, hybrid cloud environments, APIs, Kubernetes, and highly automated delivery pipelines. Releases happen continuously, dependencies shift constantly, and failures spread faster than teams can diagnose them ...

New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...

When most people think about cybersecurity, they picture firewalls, encryption, and access controls — technical tools designed to protect systems and data. But beneath the technology lies a deeper set of principles about trust, decision-making, and resilience ... The best leaders don't eliminate risk. They manage it intelligently. And in many ways, cybersecurity offers a surprisingly useful playbook for doing exactly that ...