Why Global Enterprises need a big-data engine for IT Costs

Executive Summary

IT Costings is a means to an end. It is meant to achieve a business objective typically driven by either the Finance or IT depart- ments.

A consumption-based IT Costing Model is complex with many tiers of cost allocation. In comparison, Cost Allocation Models for other departments such as Legal, HR, is far simpler as it doesn’t involve IT Infrastructure.

What further complicates matters is that Global Operating Models are quite complex as firms typically centralise their back-of- fice technology infrastructure – driven by regulatory and tax reasons, to generate economies of scale across multiple revenue lines. This makes the LE structure quite complex as LEs may or may not be domiciled in the same location as that of the LEs providing the services.

To make matters worse, the data and infrastructure ecosystem of organisations is constantly evolving. This results in changes to the data environment that has implications on IT Costings.

Finally, the business need continues to evolve and widens post-implementation of an initial model. For this reason, the design of IT Costing Models should consider adapting to an organisation’s ever evolving business needs without the need for constant re-work.

The inherent architecture of Excel and other legacy relational database tools requires data manipulation and transformation within each tier. However, the granularity of costs gets lost as it navigates through the various tiers. This manipulation results in losing data granularity that is essential for decision-making.

CostLens is the only big-data based IT Costing Tool in the market. CostLens’s engine does the exact opposite of relational database tools – it enriches cost details with meaningful and relevant attributes, as it passes through each tier of the IT Cost Allocation Model and is legal-entity aware with the source costs clearly tagged as they pass through each tier of the IT Cost Allocation Model. Also, as the staff, contracts, and infrastructure could be distributed anywhere globally, each line of cost is split in proportion to its cost consumption and enriched by the attributes of each passing layer of the IT Cost Allocation Model. These requirements collectively provide end-to-end transparency of costs – meeting current and future business demands.

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