Do You Know How Much Your IT Costs? – NetworkWorld

Posted on 27 January 2011

The Hub Commentary_

The lack of clarity and transparency of IT services as consumed by the business is a catalyst for many of the service providers and as-a-Service offerings.  The service providers are in business to grow and drive revenue as should IT organizations.  Business Service Management practices and knowing your services is first step in achieving this transparency in measuring services both for quality and cost.

For many years IT has pushed back against such transparency and as the article ends, it could work in their favor to provide this visibility to costs.  It’s like cell phone minutes, as long as I’m not paying the bill I just use the phone without regard.  As soon as I had to assess my own usage and purchase my own phone, I had an eye opening experience.  You mean when I was in Europe it was like $2.00/minute and then there was roaming too!  Yikes!  Why didn’t someone just tell me and I would have planned accordingly and may not have used the phone as much or as often.

As long as all services are created equal and there is cool mobile and remote technology to use, the business will continue to ask for the highest levels of service and support for 24×7, where ever I am and on whatever device I choose to use.  If the costs were exposed and the tables turned to ask the questions “what is the value”, we might find the value isn’t really there and the business would say turn that off.  Currently, IT doesn’t have the right to ask the business value question until they can answer the cost question.

Do you know what your services cost and what the value is they deliver?

Michele

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For years, enterprise IT departments could be fuzzy about the costs of individual IT services and applications, but tight budgets and the relative clarity of cloud computing costs have forced CIOs into sharp focus.  (Read Full Article…)

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