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They're considered cost centers, because they are cost centers. Unless you generate revenue by selling software or providing operational or security services to
by wanorris 15y ago
They're considered cost centers, because they are cost centers. Unless you generate revenue by selling software or providing operational or security services to others, there is no direct sales upside to spending more money in these areas. There is only downside risk to not spending enough and screwing something up -- that makes them cost centers, not profit centers.
That doesn't mean they're not important, of course. Any cost center that didn't perform an important function would just be cut. But it's just like running payroll -- it would be disastrous if you couldn't do it in a consistent and timely fashion, but as long as everything seems to be working correctly, nobody outside that area is ever going to care that much about it.
- tptacek 15y agoYou're right, but the connotation to "IT cost center" is, "thing to be cut to smallest footprint possible".
- ldar15 15y agoNot at all. They are only cost centers because that's how business guys divided them up to get they toys they wanted. Consider the following two divisions: 1. Revenue center model Currently we have no computers. If we build a system that securely allows financial transactions, we can make a lot of revenue. We will assemble a team that builds a secure system for financial transactions. 2. Cost Center model We will build a system that handles financial transactions. That will be our revenue center. The system will not have security as a requirement. Then we will have a cost center that is responsible for making this system secure. PHB: Which costs more? Option 1? Ok, do option 2 then. Build me a system that isn't secure first, and then we'll work on that when we can.
- mkopinsky 15y agoAgreed. Baking security in to your products in the first place is the only way to do it.