Very good Article by David Floyer (thank you) on Wikibon
The economics of IT is one topic that has been discussed ad nauseam over the last decade. The issue is that a large percentage of the overall IT budget is consumed in order to maintain the status quo with little to no dollars being spent on innovation or new capabilities that drive business growth and shareholder value. New technologies and capabilities are unveiled every year that tout their economic value in order to get IT and CIOs to pick their heads up from their smart phones to make a purchasing decision. A few examples are Server Virtualization, Data deduplication, and now Converged Infrastructure solutions. Each technology came with the promise that by implementing the new capability, it would save IT money. In many instances, these technologies did help a specific segment of the infrastructure but may have hurt others. At the end of the day, very few of these new capabilities actually put IT departments in a position to change their investment strategy to focus on innovation. Rather, they just moved money around.
Read on here