Tuesday, June 03, 2014

Ruminating on RTB, GTB and TTB

The IT industry loves TLA's (three letter acronyms) ! Recently a customer was explaining their IT budget distribution to us in terms of 'Run the business investments', 'Grow the business investments' and 'Transform the business investments'.

RTB investments are for 'keeping the lights on'. This budget is required to keep the operations running that support the core business functions. In RTB investments, the core focus is on efficiency and performance optimization. RTB-type applications are increasingly being outsourced to a IT vendor under a managed services contract.

GTB investments are used to support organic growth and increased customer demand. For e.g. adding capacity to an existing data center, bolstering your DR site, virtualization for quick provisioning, etc.

TTB investments are for creating new products or introducing new services; i.e. making changes to the current business model. For e.g. Apple entered the music industry with iTunes, IBM moved to services from hardware, etc.