During my work with the IEC last year three things stood out with market leading ITAM implementations :
- They mapped services to costs effectively
- They provided feedback to the business in layman’s terms
- They provided the business levers for change
Unfortunately, this level of maturity also involved a great deal of spreadsheet crunching. The closest thing I have seen to automating this spreadsheet crunching process between ITAM and IT Financial Management with a business application is Digital Fuel.
Unlike traditional ITAM tools with an asset focus, or ITSM tools with a service focus, their first port of call is IT costs, building a suitable cost model, and other automated IT cost management business processes such as IT cost allocation, chargeback, budgeting, and re-forecasting based on actual versus budget IT spend.
I have included a video of a Digital Fuel webinar from back in November entitled “Billing & Chargeback in a VMware Cloud Environment”
“The speed and flexibility of virtualization makes some form of chargeback mandatory; otherwise, demand could skyrocket and more low-priority workloads could be deployed that don’t justify their costs”
Gartner = 2008
The premise is that VM’s – although convenient and fast to deploy are not free and that developing a cost model for VMware (whether for invoicing or just internal reference) allows resources to be allocated to high priority projects.
Best viewed in full screen. If you have any experiences with building a cost model for VMware or other virtual platforms please post a comment below or contact me.
About Martin Thompson
Martin is also author of the book "Practical ITAM - The essential guide for IT Asset Managers", a book that describes how to get started and make a difference in the field of IT Asset Management.
On a voluntary basis Martin is a contributor to ISO WG21 which develops the ITAM International Standard ISO/IEC 19770.
Learn more about him here and connect with him on Twitter or LinkedIn.