Accurate IT Cost Allocation


Accurate IT Cost Allocation

IT cost allocation reporting can be performed accurately with Correlsense SharePath’s end-to-end view of transaction processing across the data center.

IT cost allocation can be a difficult subject for discussion at times. Business units and their departments receive bills for IT services and attempt to understand the value they have received for the IT services delivered. Allocation reports include elements such as:

  • Online transactions completed
  • CPU time consumed
  • Messages sent or received
  • Batch processes completed
  • Kilobytes of storage consumed

Reports may also track days rather than the number of business transactions serviced by area of the business. The approach of delivering detailed IT resource consumption data rather than business transaction service information creates immediate tension.

Compare this with the cost model for purchasing a gallon of gasoline. The consumer is presented with a cost per unit. Think about it—how many times have you been driving down the street, taken a quick sweep of the prices on the signs, and pulled into the station with the best price?

Imagine a time when IT organizations are able to discuss IT costs per business transaction. The IT group could have a rate card for the various services delivered and also include the cost for processing each type of business transaction. Business units could easily understand increases and decreases in expenses because they would be directly related to increases or decreases in business volumes.

Pricing data center services per unit of business is valuable when organizations are evaluating whether to keep a service inside the company or outsource it. Moreover, decisions within an IT organization can be simplified by asking what the impact of the decision is on the cost of a business transaction.

The time for accurate IT cost allocation reporting is now!

Given the current economic condition of the world, IT groups must migrate to cost allocation processes that are easy to understand for their customers. The basis for this migration is a complete understanding of the costs associated with IT transactions. Correlsense’s end-to-end view of transaction processing across the data center provides a complete and accurate process for IT cost allocation.

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