12 Ways to Shift to a Consumption-Based IT Model

 
 
By Karen A. Frenkel  |  Posted 11-14-2014 Email
 
 
 
 
 
 
 
 
 
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    Clearly Define the Goals
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    Clearly Define the Goals

    Marry your IT and corporate financial management strategies by deploying consumption-based processes that serve your users' needs in real-time across traditional infrastructure, public, private or hybrid clouds.
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    Embrace Your Hybrid Operation
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    Embrace Your Hybrid Operation

    Develop a strategic set of financial and operational controls by providing a global view of enterprise IT assets, regardless of the infrastructure architecture.
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    Define the Services
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    Define the Services

    Use flexible IT planning and management software to identify details of usage. Bundle usage into IT services offered in a business-friendly catalog. Improve resource visibility and selection by line-of-business, as well as servers, storage, networking, CPUs, apps, desktops, etc.
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    Capture Consumption Data
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    Capture Consumption Data

    Capture consumption data in a timely manner using consistent, repeatable processes that streamline invoicing and revenue recognition. Invest in proven data collection and reporting software designed for consumption-based IT.
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    Determine Who Your Customers Are
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    Determine Who Your Customers Are

    Transform your reporting views by resource usage with an automated process to identify the owners of each transaction. Transition the users of the services to the new consumption model wherever they reside in the enterprise.
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    Support Consumption-Based IT Demand
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    Support Consumption-Based IT Demand

    To determine what location is best used to support consumption-based IT demand, view your enterprise assets by global location in detail, regardless of the infrastructure architecture deployed.
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    Consider Flexible Pricing Plans
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    Consider Flexible Pricing Plans

    Meet the rising demand for competitive IT pricing in a scalable and cost-effective way using a consumption-based solution. Leverage flexible pricing features like fixed, variable, tiered, scheduled, resource state, etc.
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    Offer Cost Transparency
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    Offer Cost Transparency

    A consumption-based solution allows IT managers to track detailed usage and costs that improve the accuracy of reports and provide drill-down capabilities that allow the customer to investigate costs at a granular level.
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    Set Up Automated Alerts
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    Set Up Automated Alerts

    Set up alerts to capture and analyze data to monitor allocated versus used capacity, P&L, trends and forecasted usage across the entire enterprise.
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    Use a Single-Pane Dashboard
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    Use a Single-Pane Dashboard

    Set up a customizable, single-pane dashboard that provides real-time visibility across the hybrid IT environment—traditional and public cloud—using consumption-based metrics associated with costs, demand, supply and other key performance indicators.
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    Measure the Benefits
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    Measure the Benefits

    Within six months of adopting a consumption-based model, IT will be able to: Rapidly deliver services that match demand. Drive down costs by quickly understanding any over-provisioning. Reduce complexity of billing, service allocation, trends, forecasting, variances, alerts and reporting.
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    More Benefits
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    More Benefits

    Deliver the right service at the right time and reduce shadow IT. Be viewed as a trusted advisor for technology decisions across the enterprise. Act as a broker of internal and outsourced services, and optimize costs.
 

Since enterprises began deploying cloud computing several years ago, IT has struggled to find the right balance between operational management and cost transparency. Detailed costs across the legacy, public and private clouds have been difficult to collect and report, and hybrid IT cloud computing has made managing resources and costs even more complex. With shadow IT and demands for more responsive IT implementations growing, CIOs must adapt. How IT operates, manages, spends and relates to its internal clients is what's driving a consumption-based model. With hybrid IT cost management tools, new business services can be delivered to meet real-time demand. Using the tips below, CIOs can increase their understanding of the use and management of consumption-based IT. "Your conversations with senior management and your internal clients will be elevated to business-value discussions based on IT services supply and demand," says Penny Collen, senior financial solutions architect at Cloud Cruiser. Here are her suggestions for making your transition successful.

 
 
 
 
 
Karen A. Frenkel writes about technology and innovation and lives in New York City.

 
 
 
 
 
 

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