How to Find Clarity in Your IT Costs

Finding The Balance Between Operating Expenditure and Capital Expenditure

Consumption of technology requires foresight; there has to be a thorough understanding of suitability and consequences. In today’s world, operating expenditure (OPEX) and capital expenditure (CAPEX) have been wrung through marketing ploys such that we have an apparent panacea for IT budgeting: the Cloud. The irony that the proposed solution to all our problems is that which is opaque and over which we have no control, does not escape us. How does one architect financial solutions to overcome budgeting challenges in an appropriate way? The question remains open.

Alan Fullerton, CEO, Teknicor, believes fundamentally in fiscal responsibility, “We cannot interpret the decision to invest in OPEX or CAPEX as fatalistic. Different demands require different solutions.” For Alan, “It is not about what we think works, but what we need to make it work.” On the surface, OPEX is attractive because it does not burden the balance sheet, while on the other hand, CAPEX appears costly because it’s an on-premise solution where capital takes up real estate. The reason so many companies today suffer from poor IT planning and the massive costs that surely follow is because they buy into this disinformation.

It is not about what we think works, but what we need to make it work.

Alan makes clear that, “There is a time and place for both. Short-term costs can belie long-term reality. The Cloud is expensive in the long-run. In a lot of instances, an on-premise solution is the cost-effective one. But still, there is nuance: “Long-term predictability and specialized applications lends themselves to CAPEX, while unpredictability, seasonality and recent establishment favour a Cloud solution. Geography, industry and size all play their parts.” What we gather from Alan’s outlook is that any approach to IT budgeting and planning becomes an exercise in self-awareness. There is rich context to the decision and, given the frequent oscillation between the two models, companies often cannot embed themselves within it.

Knowledge breeds confidence. Looking back while anticipating what is ahead.

Going back to the concept of fiscal responsibility, before detailing how Teknicor uses a full spectrum of technologies to architect a holistic solution, Alan highlights a trait unique to Teknicor, “Here, it begins before the fact: our Pre-Sales Discovery approach is designed to get into the dark corners, to access not some, but all the information. This way, we know what our clients need, what they want, and how conducive the two are to each other.” Knowledge breeds confidence. Looking back while anticipating what is ahead, Alan states, “Our relationships with our clients are not transactional: these are organizations we have been working with for over 10 years. The low turnover we have is product of a built up intelligence. Our clients value the continuity we bring them and the architecture we construct for them.”

This continuity is important given that technology is constantly in a state of regeneration. Alan explains that Teknicor takes a proactive approach when dealing with the transient, “Our infrastructures are based off a five year strategy, at the end of which we reassess and rearchitect. New requirements and mission critical resources entering the environment are accounted for and incorporated.” Speaking on what separates Teknicor from the competition, Alan says, “Where others create silos of disparate systems—the result of a lack of information—we consolidate; where others rely on manufactures for design, architecture and implementation, we do our own; where others sell, we educate.” For Alan, “It’s all in the mechanics.” There can be clarity in cost. All you have to do is the math. Teknicor can help with that.