Consolidation is fashionable. And, as long as the KPIs aren’t picked too carelessly, the projects are generally also judged as being successful. But are they really? In the overall context? Have the effects on the processes and the organization been included in the assessment, or was the consolidation just a case of using the positive management mood to introduce new technology-driven systems? This article is concerned with the different motivations for consolidation and the effects far beyond those of integrating technical systems which have to be taken into consideration. The factors critical to the value-creating ability of the consolidation of an ICT infrastructure are examined and the often underestimated risks assessed.

IT is expected to get faster, work better and to look good. No problem – if it wasn’t for the costs! The IT budget unfortunately doesn’t grow in line with the increased demands on the systems. What are the consequences? Less service isn’t an option as the service package is meant to be growing and improving. So costs have to be cut. A first step towards improvement is thus made with the consolidation of the IT: parts of the existing and established infrastructure have generally reached the end of their lifecycle, i.e. new components are needed to replace them. The users want more than the existing hard and software can offer anyway, this makes the extension or even the replacement of the system necessary.


Measured in terms of the defined key performance indicators (KPIs) this type of consolidation is generally successful. But isn’t the choice of appropriate KPIs the critical point? According to the motto "What you measure is what you get!", the number of systems or the degree of heterogeneity may have been reduced as the result of a project – and thus the desired figures achieved, the IT infrastructure made cheaper. But what happens when new demands are made of the consolidated environment? Can the consolidated server really cope with new releases, and is the service package necessary for a particular application really compatible with the other applications on the system? How do the test and acceptance procedures work?


Operative consolidation isn’t equivalent
to value creation for IT


In 2005 the word ‘consolidation’ was one of the most common buzzwords amongst IT managers. In times of tight IT budgets consolidation efforts became part of daily life in the ICT infrastructure business. The projects often concentrated on individual subjects, and were supported by suppliers who promised, for example, better conditions for the update, for the return of old hardware or for additional features. The effects of these projects are however typically very limited and short term – the so-called ‘quick wins’ often disappear completely in the medium term. The reason is that these projects ignore the strategic component of consolidation objectives. The approach must go beyond being purely operative to include strategic considerations. It should not be defined in terms of technical capabilities but should be derived from the value chain.
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