'Cloud sprawl is real': Where to cut tech spending

Despite financial challenges in the last year, health systems are still prioritizing spending on new technology to operate more efficiently, reduce burnout, and deliver better patient care. But that doesn't mean the pressure is off IT leaders to cut spending.

Many large health systems have transitioned to the cloud in recent years, or have plans to in the near future. The cloud offers many advantages in data storage and management, interoperability and more ahead of applying new applications and artificial intelligence-driven capabilities. Last year, 78 percent of U.S. technology decision-makers anticipated their organization would invest in cloud infrastructure this year, according to the Forrester Budget Planning Survey.

But without proper management, the cloud environment could become just as chaotic as previous platforms. Forrester suggested avoiding adding more cloud environments, noting that many programs studied had "accumulated unnecessary baggage," meaning less resources for new initiatives.

"Cloud sprawl is real. Focus on interconnectedness among existing environments to generate greater operational portability in the cloud," the report notes. Forrester also suggests:

1. Making sure cloud investments expand capacity and remove barriers systemwide. Any new cloud investments should also seamlessly shift workflows.

2. Any new software-as-a-service vendors should fit within the broader IT design.

3. Evaluate tools and eliminate redundancies to make room in the budget for new investments. A tech audit across all customer service, IT and digital functions will help leaders identify overlap, consolidate functions and sunset unneeded capabilities.

4. Outsource smartly, and consider building in-house expertise if the outsourcing company doesn't add value to the organization.

"Stop automatically turning to and relying on your digital service providers. Instead, rigorously review each provider you work with. Beyond offering stopgap solutions, can that provider become a more valuable co-innovation partner?" states the Forrester report.

5. Forrester recommends eliminating the IT infrastructure library. "As a framework, ITIL is clearly in its endgame, and we don't expect any further updates or significant thought leadership. Forward-looking digital organizations should look elsewhere for training," noted the Forrester report.

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