Chapter 1. Why Does IT Cost So Much?

Dependence on IT is greater today than it has ever been. Think about it. Twenty-five years ago only the largest corporations relied on technology to support their growing global businesses. Today, every company—public or private, small or large, regional or international—uses IT in the front office, in the back office, and on the Internet. Even private individuals think nothing of using eBay and PayPal to sell goods to people half a world away, essentially making them small businesses outsourcing their IT needs to a sophisticated global vendor.

While our dependence on technology is growing, so is the cost. Estimates for the total spent on management of existing software reach $1 trillion per year. We've estimated ...

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