For organisations operating mission-critical infrastructure—whether in finance, public services, or utilities—IT resilience, security, and performance aren’t just priorities; they’re the lifeline of operations. Yet, despite the best efforts of IT and finance teams, many organisations today are spending far more than they should just to maintain the status quo.
A big reason? Virtualisation licensing costs have surged – often in ways that are opaque, confusing, and frustratingly difficult to navigate. For organisations that rely on virtualisation for support on their infrastructure, which is effectively everyone, these changes demand a reassessment of cost efficiency, licensing structures, and overall IT strategy.
The financial and operational risk of a reactive approach
When facing steep renewal increases, it’s easy for organisations to fall for one of two traps: either directly absorbing the costs without questioning efficiency, or engaging in aggressive cost-cutting without a basis of strategic insight or intent.
Renewing licensing outright, despite the often eye-watering price hikes, may seem like the most straightforward approach. However, doing so without conducting an in-depth IT infrastructure assessment can lead to inadvertently overpaying for underutilised resources, or committing to misaligned structures. On the other side of the spectrum, some organisations aggressively reduce licensing to contain costs. While this may lead to short-term expense reduction, it can also weaken system performance, introduce downtime risks, and impact service continuity to customers.
By leveraging deep infrastructure insights, organisations can optimise spend without compromising performance – ensuring that every resource paid for is one that is genuinely needed.
The infrastructure challenge: more than just licensing costs
The challenge of rising IT costs extends beyond software licensing. Vendor-imposed hardware compatibility restrictions can make cost-saving efforts more difficult. Some leading infrastructure vendors tie their physical servers and storage hardware to specific virtualisation licenses, often very costly ones, making it a challenge to adjust licensing models without a significant overhaul of the underlying infrastructure. This creates a situation where organisations are locked into costly renewal cycles, not because they require the same level of resources, but because their hardware investments dictate their licensing choices.
Through a complimentary, in-depth infrastructure assessment, organisations gain a clear, data-backed view of their IT estate
However, organisations that take a strategic approach to infrastructure planning have found opportunities to increase flexibility and reduce long-term costs. By assessing alternative infrastructure models, some have achieved cost reductions that more than offset the investment required to transition away from rigid vendor ecosystems.
Gaining clarity before your next renewal
For many organisations, IT renewals are treated as a routine budgeting exercise—a cost to be absorbed rather than a strategic decision to be optimised. In reality, renewals are a control issue. Without a clear understanding of actual infrastructure usage, organisations risk allowing vendors—not internal strategy—to dictate their IT costs. Many only reassess their IT requirements after a price hike forces them to do so, by which point their options have narrowed. By approaching renewals proactively, organisations can optimise spending, negotiate from a position of strength, and avoid unnecessary cost escalations.
Datapac helps organisations to take back control. Through a complimentary, in-depth infrastructure assessment, organisations gain a clear, data-backed view of their IT estate, ensuring they are paying for what they actually need—not just what vendors have packaged for them.
Before committing to another renewal cycle, organisations must ensure their IT investments align with business needs rather than vendor-imposed constraints. Contact Datapac today to schedule your assessment and gain the clarity needed to make an informed, strategic decision.
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