IBM Systems Magazine, Power Systems - April 2017 - 13
include the sunk costs of past
investments. When resources are
shared between users, other users
are unfairly saddled with these
sunk costs, which further distorts
the value calculation of users
IT organizations must factor
in the effects of technology shifts
on total cost. They should ensure
chargeback mechanisms support
strategic decisions and reflect real
value to the organization.
drive strategic technology choices.
No matter what IT organizations
decide to do, they must manage
the effects of chargeback and communicate with users to ensure that
IT decisions lead to better service
and lower user costs.
Finding solutions may not
be easy, but they could involve
preventing users from making
technology decisions on the basis
of chargeback, better alignment of
chargeback to cost, and consciously designing chargeback to
Seeing the Full Scope
Chargeback can often drive
users to make narrow decisions
without considering unwanted
side effects, such as increased
software costs driven by platform changes. In the example
with Mary, she or her customer
may see an increase in software
charges as a result of additional
cores or platforms required with
moving the application. Unfortunately, it may be difficult for
Mary or the user to figure out
why software charges increased.
In many cases, these charges are
covered under separate budgets, or are captured in a large
budget and allocated to all users.
Software costs go up, and no one
knows why. The software cost
example is by no means unique.
Other costs could include those
associated with security, operations and facilities.
Like many infrastructure managers, Ellen, Mary, Fred and George
are in for a rough time. They
typically have little or no control
over the chargeback systems
that are imposed. Their users
see constantly shifting unit costs
that seem to thwart any efforts at
achieving lower costs causing a
loss of confidence in the chargeback systems and IT management's ability to manage costs.
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ibmsystemsmag.com APRIL 2017 // 13