What is Chargeback?

Chargeback is a cost allocation strategy used by enterprise IT organizations to charge business units or departments for the IT resources / services they consume. This strategy allows organizations to assign costs to the departments that are responsible for them, which can help to improve accountability, cost management and cost optimization.

Under a chargeback model, IT resources such as hardware, software, and services are assigned a cost and allocated to the business units or departments that use them. The costs may be based on factors such as usage, capacity, or complexity. The business units or departments are then billed for the IT resources they consume based on these costs.

The chargeback model can provide several benefits for organizations. It can help to promote transparency and accountability, as departments are charged for the IT resources they use. This can help to encourage departments to use IT resources more efficiently and reduce overall costs. Chargeback can also help to align IT spending with business goals, as departments are more likely to prioritize spending on IT resources that directly support their business objectives.

Implementing an IT chargeback model requires careful planning and communication to ensure that it is implemented effectively. It is important to establish clear policies and guidelines for how IT resources are assigned costs and billed to business units or departments, and to provide regular reporting and analysis to help departments understand their IT costs and usage.

Showback and Storage as a Service

Departmental-Archiving-WP-THUMB-2-768x512Many enterprise have adopted a Storage-as-aService (STaaS) approach to centralize IT’s efforts for each department. But convincing department heads to care about storage savings is a tough task without the right tools. Storage-agnostic data management, tiering and archiving are viewed by users as an extraneous hassle and potential disruption that fails to answer “What’s in it for me?”

This white paper explains how to make STaaS successful by telling a compelling data story department heads can’t ignore. This coupled with transparent data tiering techniques that do not change the user experience are critical to successful systematic archiving and significant savings.

Learn how using analytics-driven showback can help secure the buy-in needed to archive more data more often. Once they understand their data—how much is cold and how much they could be saving—the conversation quickly changes.

Read the blog post: How Storage Teams Use Deep Analytics.

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