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The True Cost of IT Inefficiency

Song Pang
NetBrain Technologies

A recent study found that 75% of CIOs struggle to strike the right balance between business innovation and operational excellence. Finding this equilibrium can be challenging, as focusing on operational efficiency may come at the expense of innovation and growth. For all their excitement about digital transformation, AI, or cloud computing, enterprises spend a majority of their time simply keeping the lights on.

Since IT costs can consume a significant share of revenue — between 2 and 19 percent, depending on the industry — enterprises should (but often don't) pay close attention to the efficiency of IT operations at scale. Improving operational cost structures even fractionally can yield major savings for larger organizations, often in the tens of millions of dollars. Conversely, there are long-term financial consequences to not optimizing operational processes. One way to avoid these issues is through no-code network automation.

But first, it's important to understand the context of how enterprises have fallen into a pattern of ignoring the importance of operational efficiency. For decades, IT decision makers have mistakenly assumed that the capabilities gained by new technologies have been matched by advancements in the operation of those technologies. Unfortunately, this isn't the case. Not only do organizations rely on the same highly inefficient, labor-intensive operations and maintenance (O&M) plans and practices, they're growing in scale and consume an ever-larger share of IT budgets.

And that's where the problem lies; with the increasing complexity of hybrid networks and accelerating pace of technology refresh cycles, the number of service tickets is skyrocketing. But those outdated O&M plans dictate that every month thousands of tickets must be manually assessed by a help desk or level one engineer. The result is an average mean time to repair of up to two days. Moreover, in more than two thirds of cases, problems no longer exist by the time service tickets are escalated to skilled network engineers. Problems that do persist, no matter how familiar they are to the engineers working on them or how often they've been addressed in the past, tend to be resolved with brute force using basic tools.

This network operations efficiency problem also carries significant risks and costs for the entire business. These include:

  • An increased number of service disruptions, network outages and service degradations
  • Incidents that last longer, affect more users and take longer to resolve
  • Higher security risks, more "hidden" vulnerabilities and audit and compliance failures
  • Lower available computing capacity, degraded application response times
  • Higher Infrastructure carrying costs (including warranty) for devices no longer present
  • Declining customer satisfaction, retention and valuation
  • Negative reputational impacts
  • Limited available resources across geographies, higher staffing and training costs, mismatched skill sets, and increased escalations

It's fiscally and managerially indefensible for a modern enterprise to operate with these kinds of costs and risks hanging like a Sword of Damocles over their heads.

From a strategic point of view, IT leaders need to change the way they think about IT operations and service delivery. Rather than looking purely at IT products in isolation, they need to consider the fully burdened costs of owning and operating their digital infrastructure, with the primary metric being the total cost of service delivery per unit of work.

Of course, this can be a difficult transition to make as it requires IT leaders to first accept that their existing plans don't work. However, organizations that recognize the fundamental underlying problem and make improving IT operational efficiency a strategic priority do have a powerful tool at their disposal: no code network automation.

Simply put, no-code network automation empowers IT network and support teams to do more — much more — with less. It enables every existing network resource to become an automation expert by capturing and abstracting subject matter expertise, automating repetitive manual tasks (like network configuration, outage prevention, assessment and daily operations and diagnostic troubleshooting) and performing them efficiently at scale across every hybrid cloud-connected network infrastructure. Problems only need to be "solved" once and then can be corrected automatically when they reoccur.

The bottom-line impact of this kind of modern O&M approach is significant. Even small improvements can translate to significant cost savings at enterprise scale. A multi-billion-dollar enterprise, greater network operations efficiency could reduce costs by tens of millions of dollars per year.

Despite these compelling numbers, for most organizations the potential of network automation is still largely untapped. But as networks continue to grow in scale and complexity, IT leaders must pay closer attention to the structural and process inefficiencies that are eating their IT budgets. Continuing along the same path is simply untenable at a time when they are being asked by the C-suite to do more with less. Investing in network automation will not only provide financial rewards, but tangible benefits in terms of greater network reliability, improved performance and stronger security.

Song Pang is CTO at NetBrain Technologies

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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 ...

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The True Cost of IT Inefficiency

Song Pang
NetBrain Technologies

A recent study found that 75% of CIOs struggle to strike the right balance between business innovation and operational excellence. Finding this equilibrium can be challenging, as focusing on operational efficiency may come at the expense of innovation and growth. For all their excitement about digital transformation, AI, or cloud computing, enterprises spend a majority of their time simply keeping the lights on.

Since IT costs can consume a significant share of revenue — between 2 and 19 percent, depending on the industry — enterprises should (but often don't) pay close attention to the efficiency of IT operations at scale. Improving operational cost structures even fractionally can yield major savings for larger organizations, often in the tens of millions of dollars. Conversely, there are long-term financial consequences to not optimizing operational processes. One way to avoid these issues is through no-code network automation.

But first, it's important to understand the context of how enterprises have fallen into a pattern of ignoring the importance of operational efficiency. For decades, IT decision makers have mistakenly assumed that the capabilities gained by new technologies have been matched by advancements in the operation of those technologies. Unfortunately, this isn't the case. Not only do organizations rely on the same highly inefficient, labor-intensive operations and maintenance (O&M) plans and practices, they're growing in scale and consume an ever-larger share of IT budgets.

And that's where the problem lies; with the increasing complexity of hybrid networks and accelerating pace of technology refresh cycles, the number of service tickets is skyrocketing. But those outdated O&M plans dictate that every month thousands of tickets must be manually assessed by a help desk or level one engineer. The result is an average mean time to repair of up to two days. Moreover, in more than two thirds of cases, problems no longer exist by the time service tickets are escalated to skilled network engineers. Problems that do persist, no matter how familiar they are to the engineers working on them or how often they've been addressed in the past, tend to be resolved with brute force using basic tools.

This network operations efficiency problem also carries significant risks and costs for the entire business. These include:

  • An increased number of service disruptions, network outages and service degradations
  • Incidents that last longer, affect more users and take longer to resolve
  • Higher security risks, more "hidden" vulnerabilities and audit and compliance failures
  • Lower available computing capacity, degraded application response times
  • Higher Infrastructure carrying costs (including warranty) for devices no longer present
  • Declining customer satisfaction, retention and valuation
  • Negative reputational impacts
  • Limited available resources across geographies, higher staffing and training costs, mismatched skill sets, and increased escalations

It's fiscally and managerially indefensible for a modern enterprise to operate with these kinds of costs and risks hanging like a Sword of Damocles over their heads.

From a strategic point of view, IT leaders need to change the way they think about IT operations and service delivery. Rather than looking purely at IT products in isolation, they need to consider the fully burdened costs of owning and operating their digital infrastructure, with the primary metric being the total cost of service delivery per unit of work.

Of course, this can be a difficult transition to make as it requires IT leaders to first accept that their existing plans don't work. However, organizations that recognize the fundamental underlying problem and make improving IT operational efficiency a strategic priority do have a powerful tool at their disposal: no code network automation.

Simply put, no-code network automation empowers IT network and support teams to do more — much more — with less. It enables every existing network resource to become an automation expert by capturing and abstracting subject matter expertise, automating repetitive manual tasks (like network configuration, outage prevention, assessment and daily operations and diagnostic troubleshooting) and performing them efficiently at scale across every hybrid cloud-connected network infrastructure. Problems only need to be "solved" once and then can be corrected automatically when they reoccur.

The bottom-line impact of this kind of modern O&M approach is significant. Even small improvements can translate to significant cost savings at enterprise scale. A multi-billion-dollar enterprise, greater network operations efficiency could reduce costs by tens of millions of dollars per year.

Despite these compelling numbers, for most organizations the potential of network automation is still largely untapped. But as networks continue to grow in scale and complexity, IT leaders must pay closer attention to the structural and process inefficiencies that are eating their IT budgets. Continuing along the same path is simply untenable at a time when they are being asked by the C-suite to do more with less. Investing in network automation will not only provide financial rewards, but tangible benefits in terms of greater network reliability, improved performance and stronger security.

Song Pang is CTO at NetBrain Technologies

Hot Topics

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 ...