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Building a VMware Cost Model

Assets-Costs-ServicesDuring 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.

The presentation gives a good overview of developing a cost model for VMware implementations and includes a high level overview of both VMware V Centre Chargeback and Digital Fuel  technology.

Building a VMware Cost Model from Martin Thompson on Vimeo.

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 owner and founder of The ITAM Review, an online resource for worldwide ITAM professionals. The ITAM Review is best known for its weekly newsletter of all the latest industry updates, LISA training platform, Excellence Awards and conferences in UK, USA and Australia.

Martin is also the founder of ITAM Forum, a not-for-profit trade body for the ITAM industry created to raise the profile of the profession and bring an organisational certification to market. On a voluntary basis Martin is a contributor to ISO WG21 which develops the ITAM International Standard ISO/IEC 19770.

He is also the 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. In addition, Martin developed the PITAM training course and certification.

Prior to founding the ITAM Review in 2008 Martin worked for Centennial Software (Ivanti), Silicon Graphics, CA Technologies and Computer 2000 (Tech Data).

When not working, Martin likes to Ski, Hike, Motorbike and spend time with his young family.

Connect with Martin on LinkedIn.

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