Shining a light on maintenance

13.02.2006

As CIOs start to work on greater visibility into maintenance expenses, it will bring savings and closer alignment with the business. And demonstrating greater control may even boost their budgets. "Transparency will bolster your credibility," says Blake. "And when you're transparent, you can make a case for the things you know will change the business."

Pratt is a Computerworld contributing writer in Waltham, Mass. You can contact her at marykpratt@verizon.net.

SIDEBAR

Check Those 'Fixed' Fees

Some CIOs consider maintenance fees -- the 10 percent to 25 percent per year that vendors charge in addition to licensing fees -- to be a fixed expense. But savvy executives are getting better at negotiating these contracted costs. "There's a lot of opportunity to go after and renegotiate maintenance contracts," says Michael Blake, vice president and CFO at Kaiser Permanente Information Technology.