Had a great conversation the other day with Milind Govekar at Gartner. Conversations with him are always a pleasure – he knows the industry and is exposed to tons of customers, which obviously brings lost of value to me. OK, enough with this – I am losing credibility promoting Gartner.
Millinad nicely put it that at the heart of what my company does, IT Cost and IT Financial management, is usage-based IT Cost allocation.
At the core of it is the fact that as IT becomes more centralized and based on shared and virtualized resources, one must easily allocate costs based on actual usage. Why? Simply because if you can’t do that, then you can’t accurately and predictably know your operating costs and therefore your P&L reporting is going to be all wrong, inconsistent, unjustifiable and unpredictable and that is simply unacceptable.
