The Cost of IT Failure: A Financial Melt Down Every Year
November 10, 2009
That’s great news, if the analysis is correct. Read “$5.4 Billion a Year: The Cost of IT failure in NZ. New Analysis Attempts to Calculate the Total Cost Failed IT Spending”. The figure comes from a pretend Kiwi from Texas, Roger Sessions, the CTO of ObjectWatch. The most interesting passage in the write up was:
“The United States is losing almost as much money per year to IT failure as it did to the financial meltdown,” Sessions writes. “However, the financial meltdown was presumably a one-time affair. The cost of IT failure is paid year after year, with no end in sight.” Sessions calculates the US failure bill at US$1.2 trillion and the worldwide cost at $6.2 trillion. One reason the numbers are so high is because Sessions has included what many people don’t even think about: the opportunity cost of failure.
Will SharePoint 10 help remediate this problem? Google Apps for the Enterprise? IBM or Oracle? Maybe these folks rise above the fray?
Stephen Arnold, November 10, 2009
I wish to report to Organizing for America that I wrote this post without compensation. The free market economy is being cruel to me.
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2 Responses to “The Cost of IT Failure: A Financial Melt Down Every Year”
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Thanks for mentioning the white paper! You can download the white paper and a related spreadsheet at http://bit.ly/3O3GMp. One correction to your post: I am very sorry to admit that I am not a Kiwi. I am from Houston Texas, although I do travel to NZ often.
Thanks again!
- Roger (@RSessions)
Hey! I’m not a pretend Kiwi. I’m a Kiwi wannabe. There is a big difference!