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The taxman will cut £110m from its annual IT bill by trimming its IT infrastructure.

HM Revenue and Customs (HMRC) will reduce the £840m it currently spends on IT each year by ditching or shrinking the size of 40 computer systems and shutting down a number of datacentres.

HMRC inherited a large number of systems after it was created from the merger of the Inland Revenue and Her Majesty’s Custom and Excise in 2005, leaving it with duplicate systems performing the same role.

Consolidation remains one of the most effective ways in reducing your costs, it can sometimes be very simple activities like reducing the number of types of server you have, or even just having one larger database cluster than separate database servers for each business line or application.

Certainly reducing the complexity and the size of your infrastructure combined with the number of data centers should reduce your operating costs (directly in terms of power and space), as well as indirectly in terms of support costs and delays to fixing issues as a result of application or infrastructure complexity – component a is broken, how do I restart it and what interlinked systems need work carried out on them. An interesting read for HMRC, do check it out.

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