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Showing posts from May, 2014

IT chargeback/showback and SaaS

In this post I’d like to approach the issue of whether and how Software as a Service (delivered of course through cloud technology – don’t let them tell you otherwise!) can assist an organization implement an IT chargeback / showback strategy. For those that haven’t heard the terms before, IT chargeback is the methodology or strategy that applies/allocates Information Technology costs on the business unit that is actually using an I.T. resource (be it software, hardware, professional IT services etc.) Chargeback can go as far as internal expense management where the business unit actually experiences cash outflow (or budget consumption) in order to implement an IT function. In other cases, there is no actual cash movement; all calculations are done on reporting level only in order to have a clear image of the costs incurred by each business unit to the organization, for planning and budgeting purposes. This is called “IT showback” where numbers are “shown” but are not actually “charge…