IT chargeback system

Strictly speaking, there is no business case for an IT chargeback solution. Still, if you think about it, there’s no business case for your computer either. Sure, you could use a computer for such value-added tasks as application development or database management, but you could also be wasting your time watching cat videos on YouTube, goofing off on social media or playing Candy Crush.

Same goes for chargeback, loosely defined as the determination of IT costs and the allocation of those costs to the departments that use them. The idea is that chargeback invoices will train the line of business owners to efficiently use shared IT resources in a way that will drive down units consumed, lowering their own administrative costs and thus the total costs of the cloud that the entire enterprise uses.

There are real barriers to using cloud-based chargeback solutions right. The one that everyone forgets is process. Financial management is as much a key IT service management (ITSM) process as tracking your SLAs (service level agreements) or fulfilling requests

Remember that there are reasons why somebody raised a hand and said, “We need a chargeback solution.” There’s probably a lack of control and cost transparency. And it’s not just shadow IT and runaway costs.
There’s probably a department that insists on using an obsolete application, even though it’s out of support and has been replaced elsewhere in the organization. Or a team that over-provisions its storage resources simply because of a mentality that they’d rather have the capacity and not need it than need it and not have it. Or those that don’t do any capacity management and end up stealing (as there’s no other word for it) resources that have been allocated to other departments. And in case you think that’s not your problem, remember that if you’re leading a project, stakeholder management is as much a part of your job as anything else.

There was no easy-to-find information on building a business case for cloud-based chargeback solutions, however, Grand Rapids Technology Source  can help you navigate the multiple solutions and guide your company to a cost saving solution. 

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