History of Computing, 1970s
Adolescence: The “Databased” Corporation, cont.
vIT costs more money (1% or ½ – 10% of budget)
²The new class of technology cost even more than before, but by the end of the 1970s a rule of thumb was emerging about technology spending: organizations should target 1% of their expense budgets on IT.
²But the rule was rough, 1% held as an industry average for manufacturing; but 10% of non-interest expense was more the norm for banks, investment houses, and insurance companies. While ½% was closer to the average for retail organizations.