How to Convert IT from Cost to Value

How to Convert IT from Cost to Value

Now days each big organization have many divisions and those divisions are eating cost and because of this IT looks like a Cost not profit center to higher management.

Also Higher management does not able to find out which department eating IT most and when it comes to different public cloud , private cloud and hybrid cloud it becomes very difficult.
and to solve this problem we need to focus on   TBM (Technology Business Management)

I am just describing approach to achieve this 

1)  First you need to collect data on who is eating your services.

2) Then you need to collect data and prepare inventory of all the hardware , software and network (including Service provider )

3) Collect vendor information a 

4) Now once you have this data you need to use tool which allow you to see unified view across all the the infrastructure (like cloud cruiser )

5)  once you have this kind of tools ..it will provide you data about which business unit is consuming your service.

6) now you can use chargeback and show back to relaize that business unit that they are consuming services

7) for private cloud you can use cost model from Apptio and from other to determine exact cost of the VMs and other hardware (including space ) and based on that you can chargeback - showback to your division

8) once you have trend data and capacity picture then you can optmize your cost

9) some tools allow you to do What-If modeling which empower you to compare with diffrent public/private and hybrid model.

once you start forecasting , chargeback-showback and invoices , you will cameto know from where we can cut the cost and at what level.

This will reduce your cost by 20-30% and most it will help higher management to take decision 

For create your next IT cloud strategy feel free to contact me on viralpala@gmail.com may be I can guide you to save the cost and help you to design your Enterprise cloud migration .

Thanks 

Viral Pala , PMP

viralpala@gmail.com