April 4, 2013

Financial World of
Information Technology

Battle House Renaissance
Hotel & Spa

Mobile, AL
Cost Allocation in a Software
     Defined Datacenter
Increased constraints for operating capital are pushing the next wave of server consolidation towards
Software Defined Datacenters (SDD). This advanced technology allows for the movement of many
new and existing servers into a single hardware platform that is managed by specialized software.
Diminished operating capital is also increasing the need for greater IT Cost Transparency. Ironically,
as server deployment solutions become easier, true IT Cost Transparency becomes more difficult.
When servers were based on a single set of hardware and software, it was easy to identify the owner
(users), and thus allocate the costs accordingly. The trend toward consolidated hardware, software,
and support complicates the Cost Allocation process.  As more business units share an SDD, the
once clear lines of ownership become very blurred. The bottom line of SDD Cost Allocation is
identifying who is using what and when, integrating financial and operational data, and then
determining the appropriate costs.

In this session we will:
     -- Define what is a Software Defined Datacenter (SDD)
     -- Discuss the issues related to consolidated hardware, software, and support
     -- Discuss the Cost Allocation issues associated with an SDD
     -- Review Cost Allocation methods
     -- Discuss the integration of financial, operational, and performance data
     -- Discuss an SDD model for IT Cost Transparency

At the completion of this session you will have a good understanding of the SDD processing model
along with the Cost Allocation issues that are associated with it. The ability to Integrate financial,
operational, and performance data within an SDD processing model enables IT Cost Transparency.
When you know who is using the resources and at what cost, you will understand how IT Services
are being used for the business and of what value these services are to the business.


           ITFMA 2013 - Spring