Powering System i: Powering System i

Spending on information technologies (IT) is heating up in most industries. For example, Gartner, Inc. recently raised its growth prospects for worldwide IT spending to $3.4 trillion in 2010, a 5.3% increase over 2009; Gartner projects $3.5 trillion in spending for 2011, a 4.2% increase from 2010 [www.gartner.com]. Manufacturers are once again investing to improve infrastructures and grow their businesses. Yet after the last two years, manufacturers also realize that every IT dollar counts—and needs to pay off sooner rather than later.

A recent study of System i users conducted by The MPI Group (and sponsored by Infor) showed that all the participating System i manufacturers believe that return on investment is an important purchasing criteria: 75% said “extremely important” and 25% said “somewhat important.” Not surprisingly, 71% of these manufacturers measure ROI. Savvy executives have long known that in making IT purchases, it’s especially important that they project total cost of ownership (TCO) over the life of the investment.

Yet many manufacturers lose that TCO focus after a few months or years. Long-term considerations sometimes fade as systems become familiar (i.e., same old, same old) and newer IT options entice buyers. Those firms need to reassess their System i capabilities and potential, evaluating ongoing TCO. What will they likely find? That their cost of ownership is steadily decreasing, especially if their systems (as is typical) have been functioning well and they’ve effectively managed their IT assets.

Tens of thousands of manufacturers still prosper on the System i platform, leveraging previous investments over an expanding lifetime. They’re putting freed-up IT dollars into new System i solutions to stay current with IT trends—without the expense or pain of a platform change. For example, they’re upgrading System i-based ERP systems via Infor’s Flex Upgrade and Flex Exchange programs. Others are extending ERP functionality with new System i applications from Infor, such as performance management (PM), customer relationship management (CRM), and supply-chain management (SCM).

You might see other manufacturers spending on IT. You might see still others migrating to new platforms—and paralyzing their businesses just when they need to be strongest and most nimble. Don’t bet on an untested, new TCO model when your current System i continues to deliver improved TCO and, more importantly, the functionality you need to succeed today and tomorrow. After all, don’t you have better things to invest in?

Posted by Kari Miller, Senior Director, Product Management, System i

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