T r e n d a g r a mLean technoLogiesLean IT pracTIces and ouTsourcIng reduce cosTs

14 N OV E M B E R 2 0 1 3 R I S N E W S . C O M

Sources: 1 – Lean Retail – Doing More with Less, Cisco, 2011; 2 – North America Outsources 16% of Data Center Load; Europe Lags, IHS Electronics & Media, July 2013; 3 – What is a Lean Supply Chain?, Ryder, ; 4 – Cisco Global Cloud Index: Forecast and Methodology 2012-2017, Cisco, 2013; 5 – Retail at the Speed of Change, RIS News, April 2013; 6 – IT Cost Reduction: Using New Technology to Cut Costs Across the Enterprise, Accenture, 2012

The main tenets of Lean Retail are:• Move IT equipment from the store to the data center

• IT equipment in stores and the data center should be consolidated and virtualized • Maximize the functionality of IT equipment in store. (1)

The portion of the IT load outsourced to wholesale and retail data centers in North America stood at 16.3% at the end of 2012 (2)

By 2017 69% of data center

traffic will be cloud traffic (4)

Annual global cloud IP traffic will

reach 5.3 zettabytes by the end of 2017,

or 443 exabytes per month (4)

GrowTh of workloAdS IN cloud dATA ceNTerS IS expecTed To Be

5x The GrowTh IN TrAdITIoNAl workloAdS BeTweeN 2012-2017 (4)

factors contributing to traffic remaining in the data center include functional separation of application servers, storage and databases, which generates replication, backup and read/write traffic traversing the data center. (4)

every process must add value

– if no value is added, eliminate

it (3)

18.9% of retailers surveyed said cost containment was a major action item over the next 18 months (5)

16.3%

69% The GrowTh5x

S P O N S O R E D B Y:

+- - -

More than 1.3 gigawatts of leased IT capacity will be added during the next five years between North

America and europe. (2)

while the savings that IT can generate within its own operations

are worth having, these savings are dwarfed by the much larger cost

reductions that IT can help to identify, initiate and realize across the rest

of the enterprise. (6)

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