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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 But those outdated O&M plans dictate that every month thousands of tickets must be manually assessed by a help desk or level one engineer.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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If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...

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 are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...

Seamless shopping is a basic demand of today's boundaryless consumer — one with little patience for friction, limited tolerance for disconnected experiences and minimal hesitation in switching brands. Customers expect intuitive, highly personalized experiences and the ability to move effortlessly across physical and digital channels within the same journey. Failure to deliver can cost dearly ...

If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...