[Chugalug] i.t. budget should only be 5% to 10% of entire company budget????

Ed King chevyiinova at bellsouth.net
Thu Dec 20 02:31:13 UTC 2012


I will do a similar analysis....  if/when I am ever shown actual revenue and 
budget numbers.   We have 3 people (we used to have a lot more when we had 2 
separate I.T. teams but we lost the whole other team) consisting of 2 full 
timers and 1 as-needed contractor,  Our team's programming experience ranges 
from 5 years to 20 years.   Being the "fat lazy Americans" that we are, any one 
of our salaries exceeds your example of 30k...  but not by much.  We probably 
have the lowest paid programming staff in town (www.payscale.com), so when I 
hear of further I.T. cuts, yeah, I get pissed, but also excited...  at the 
prospect of starting over fresh at a new job ;) 

Anway, like I said, I don't even know what our revenue is...   perhaps its a 
function of the $25/hour rate that our one and only "client" slapped upon us 
(hey wait a minute, shouldn't "we" be able to set the rate if we are truly 
separate company?!).     I've seen what hourly rates the applicants for a recent 
open position were asking for, and it sure as hell wasn't $25/hour.   What about 
the folks who wear multiple hats (programmer, project manager, dba, sysadmin), 
should I get paid 25 per hour per hat? 

Something just does not add up.  I can't see how a team of 3 who DELIVERS (our 
code gets used; puts money in owner's pocket; and our project/servers aren't 
sitting in a room collecting dust because the project failed/cancelled) at a 
rate of $25/hr could be that much of a drain.

So what do y'all do to convince the business side of your organization that I.T. 
is not a drain?   Or in other words...   got any good, shareable ideas on how to 
make I.T. a profit center (and still get paid)?


----- Original Message ----
From: Mike Harrison <cluon at geeklabs.com>
To: Chattanooga Unix Gnu Android Linux Users Group <chugalug at chugalug.org>
Sent: Wed, December 19, 2012 6:45:21 PM
Subject: Re: [Chugalug] i.t. budget should only be 5% to 10% of entire company 

Just as a SWAG, I'll wager our utility customers IT budget is -way- less than 
10% of their total budget. For example, one small utility is approx 40 million 
USD a month. 10 % of that is 4,000,000 per month. They have an IT Director and 
approx 4 people under him, that's < 30k per month in payroll. Hardware, 
software, a few consultants, contract services, communications, etc.. probably 
another 50k -100k per month.

Rounding up, with overhead. etc I'll bet the budget is less than 150k per month. 
Call it < 200k just to make sure.

200,000 / 40,000,000 = .5%

At that scale, they don't use Linux to save money,
they use it because it works ( and we like it! ).

Mike Harrison  bogon at geeklabs.com  cell: 423.605.6943

On Wed, 19 Dec 2012, Ed King wrote:

> maybe I can borrow Dan's angle grinder and use it to grind another of my axes
> does ANYONE on this list work for a company that has an i.t. budget 10% or
> less?
> I was tempted to call for a Chugalunch and see if anyone could convince me 
> any company, even one that isn't a technology company, has an i.t. budget of
> less than 10%, but I checked my budget and I couldn't afford to go to lunch
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