Conference Registration and
Full Breakfast Buffet sponsored by
a leading provider in IT Cost Transparency/Financial Management Solutions
IT Chargeback’s History and Future Robert Mischianti, Vice President
The history of IT Chargeback is littered with more failures than successes. Everyone has heard the horror stories of a career blunder when chargeback was rolled out. But times have changed. New challenges facing IT, including a demand for better visibility, increasing virtualization, and cloud computing are forging a fresh future for the practice of IT Chargeback. Some analysts have said, "IT Chargeback is no longer optional; it is now a minimum requirement for every responsible CIO.” That is still being debated, but one thing is certain – IT Chargeback will never be the same again.
IT Cost Allocation at Volkswagen Credit Usman Ghani, Manager, IT Finance
Volkswagen Credit, Inc.
We are using a new cost allocation model. This session will share with you our allocation model/framework, allocation process, objective criteria used for allocating cost, stakeholders, how the allocations are done in the model, cost transparency, lessons learned, challenges, etc.
Charging for the Mid-Tier…UNIX and Windows Servers Gary Pereyo, Senior Consultant
As Ashleigh Brilliant once said, "My opinion may have changed, but not the fact that I am right.” I remind you of this quote because my opinions have certainly changed since I started talking about mid-tier chargeback many years ago. Over the years there have been many opinions as to the proper methodology for charging mid-tier servers, from charging for all resources consumed (just like the mainframe) to "If we ignore it, maybe it will just go away.” The truth is that every environment is different and it takes some thought to implement effective chargeback for servers. To perform mid-tier chargeback, we need to know…Why bother to charge? Where to start? What are the best options available today? Does the overall size of the environment impact methodology? Should more than one method be used? Is it still possible to ignore the mid-tier? Stop by this session and let’s talk.
Building Trust with IT Financial Management Chris Baczkiewicz, Manager
The IT budget negotiations are often very hard because the sponsors do not trust that the money will be spent on actual IT Services. A good solution for that is getting the sponsors involved and let them decide. This requires a special approach to presenting the chargeback rules.
Buffet Lunch - Not available to family/guests
a provider of ITFM software solutions for financial transparency
Using Chargeback to Make Smarter Business Decisions Mark Pringle, Managing Consultant
"What is the value proposition for Chargeback? Does it have a ROI? Will it save me money?" This presentation will discuss drivers for Chargeback, potential usages of Chargeback for smarter business decisions, and highlight some success stories where Chargeback contributed to cost savings.
Beyond ABC: 2nd-generation Cost Models N. Dean Meyer, President
This session reports on ground-breaking new research that compared 1st-generation activity-based costing models with 2nd-generation market-based costing models. Examples of real-world product offerings are used to estimate the pricing distortions induced by ABC. This session then defines the next generation of cost modelling, how it works, what makes it different, and what benefits it offers. While this may be controversial (especially for ABC zealots), 2nd generation models are available, practical, accurate, and more consistent with the business-within-a-business paradigm. After the session, interested attendees will receive a copy of the research report, "Second-generation Cost Models: beyond ABC, new product/service cost models improve accuracy and encourage entrepreneurship." Go to www.ndma.com/resources/docs/2ndGen.pdf for more information about this publication.
A Chargeback Methodology for Cutting Costs and Increasing Asset Efficiency Eistein Fosli, Founder
Open iT, Inc.
Many companies have moved towards dynamic cost allocation of their IT expenses. In addition to being perceived as fair and accurate, a chargeback system also helps optimize IT investment utilization. An analogy is the electricity company that charges more during peak usage in order to spread the load more evenly during the day, thus utilizing the electrical grid system better. The speaker will share with you his experiences providing an accurate and fair chargeback model, while optimizing companies’ utilization of their IT resources. Special attention will be given to appropriate chargeback models for use with software licenses (applications).
Software Demonstration: Accurately Measure the Impact of IT Costs on Profitability Using IT Cost Transparency and Chargeback Solution from ComSci Michael Siniscalchi, Vice President
ComSci’s IT Cost Transparency and Chargeback solution is a "game-changing” approach that is enabling companies to reduce costs and become more effective in their decision making. ComSci automatically integrates usage data from internal and external sources to create a single accurate, timely bill covering all technology services. With ComSci, business-unit executives finally have insight into their consumption and utilization of ALL IT products and services. This changes the conversation from "Why are my workstations so expensive?” to "What technology do we need over the next 12 to 24 months to maintain our competitive edge?”
Software Demonstration: Give the Business Units What They Want – Predictable IT Costs Yisrael Dancziger, President and CEO
Digital Fuel Technology
Business Units are demanding more proof of value from IT investments as those investments become an ever increasing portion of an organization’s spend. It is no longer acceptable for IT to imply it’s too complicated to explain what they are doing and why. Please join Digital Fuel to learn the importance of an IT Cost Management solution:
• Business Unit Visibility and Predictability to IT Costs
Software Demonstration: The Financial Link in Service Management Steven Middeldorp, CEO and Founder
ClearCost is a software tool that all IT departments can use to deliver IT Cost Transparency through Service Financial Management. Applying ABC and ITSM principles, ClearCost links General Ledger financial data to Service Costing and usage. Do yourself and your organization a favor and come along to see the next wave of IT business automation.
Digital Fuel, a leader in IT Cost Management and Visibility Solutions, invites you to join us for some delicious food, refreshing drinks, and informal conversations in a relaxing atmosphere. This will be an enjoyable opportunity for you to network with other conference attendees and (if you feel so inclined) learn about Digital Fuel's leading Service Management Solution.
Nicus Software, a leader in IT Financial Management solutions
Chargeback in Virtualized Data Centers Linus Lundberg, CEO
Accurately allocating the cost of IT services can be a complex and labor-intensive activity, especially in a virtual data center. Business users want to understand the true costs of their IT services and IT would like a consolidated bill for the use of IT services by business unit and application. In this session, you’ll learn practical techniques for implementing a chargeback system in a virtual data center. This session will explain how to do the following:
• Model and track fully-loaded IT service delivery costs, including hardware, software, personnel, facilities and energy costs
• Create a consolidated bill for IT services, providing physical and virtual service costs
• Automate the chargeback process and making it possible to bill for services on a regular basis
At the end of this session, you will have a better understanding of the cost allocation challenges of a virtual environment and how to tailor your cost allocation and chargeback systems to accurately reflect the dynamic usage of IT services in a virtualized data center.
Allocations vs. Rates - What Method is Best for Your IT Expenses? Karen White, Senior IT Project Manager
Mutual of Omaha
This session is a review of a simple cost allocation approach, an approach using moderate allocations, in comparison to a rate-times-usage approach. Pros and cons of each are discussed, as well as driving cost factors and lessons learned.
Spending Dollars in the Cloud: What You Need to Know to Make a Decision and Recover the Costs Jason Tanner, Senior Chargeback Consultant
A wide variety of vendors provide cloud computing services from Amazon to Google to legacy hosting providers. The range of pricing schedules baffles the mind. This presentation and discussion explains what you need to know to collaborate with IT and stakeholders to make an informed investment decision and provides concepts to build a cost recovery model for your investment.
Financially Managing Your IT Service "Business" Steven Middeldorp, Partner
Integrating Financial Management into IT Operations and Service Management is the next big challenge for the CIO. This presentation will focus on the practical implications for the IT financial management team in thinking and functioning more like a "business”.
Chargeback Best Practices for a Virtual Environment and Cloud Architecture Vinit Sharma, Senior Consultant
VMware UK Limited
Virtualization is evolving into a standard IT strategy, enhancing the use of cloud computing. In a physical environment, it is relatively easy to allocate and map costs. With shared resources being utilized in a cloud and virtual environment, cost transparencies and allocations are more tricky. There are three chargeback methods – Allocation, Metered and Hybrid – which an organization can implement. Usage cloud computing and chargeback is quickly becoming a standard demand by cloud service providers as accuracy and time based billing is being sought by consumers. Software solutions are using various technologies to automate cost allocations, metering, modeling and reporting. The functionalities offered by such products vary and a sound selection and implementation methodology is vital for a successful chargeback strategy. Identifying cost drivers and business processes leads to activity based costing and management. Results can vary greatly based on the methods chosen (allocation, Metered, Hybrid), yet the process of building an accurate cost model is the most important single factor influencing the effectiveness of a chargeback and financial management strategy. This presentation will showcase best practices for cost models, implementation methodology and industry best practices being developed by the various software vendors offering chargeback solutions for cloud architectures and virtual environments.
Reasonable Rates – Journey Through Time on the Yellow Brick Road Jim Marshall, Captain, USAF-Ret
Systems Software Engineer
Chargeback started back in the 1970s as a way to define IT costs and have lines of business pay their fair share. Journey back to those days and follow its progression to today looking at how rates evolved and changed along the way. In those days computers were expensive and staffs were cheap. Technology innovations made computing cheaper. Come along with someone who lived and traveled the journey "seeing” the actual technology. You will now know and understand what should be "reasonable rates”.
An Overview of Chargeback Best Practices Charles Johnson, President and CEO
CNJohnson & Associates, Inc.
This session will look back on how chargeback has been done in the past – what worked and what did not work. What are the necessary elements for a best practices chargeback process and how do we achieve this elusive goal? Some of the topics covered are: high level management support; chargeback philosophy goals and objectives; what are the benefits and how do we realize them; how much do we spend; understanding IT costs; managing IT costs by IT and customers; management versus financial information; turning data into usable information; quick and dirty versus slow and accurate; and process scope in terms of what is included. We will explore several key questions: charge or not to charge? What to charge? How to charge? Who to charge? When to charge?
Software Demonstration: Technology Business Management – A Complete Suite of IT Financial Management Solutions Michel Feaster, Vice President of Products
Customer adoption of IT Cost Transparency, IT Service costing, chargeback and budgeting solutions is accelerating like never before. As organizations get started in one area, they naturally want to pursue others. An integrated suite of solutions for enterprise IT provides greater value and a framework for improving IT efficiency and alignment to the business. In this session, you will see an overview and demonstration of Apptio’s TBM suite of applications.
Software Demonstration: Moving IT Financial Management Processes Beyond Spreadsheets Robert Mischianti, Vice President
M-PWR enables customers to transition from spreadsheet-based IT financial management tasks to a process-centric application that delivers automation, scalability, detail audit tracking, web-based reporting and much more...Define and validate your own processes, integrate all of your data elements in one place, satisfy stringent audit requirements, and automate to save time.
Software Demonstration: HP IT and Financial Analysis Solutions Richard Hawes, Product Marketing Manager and
Mark Bradley, Technical Product Manager
This session will explain HP’s strategy for maximizing the value of the data contained within your IT management environment. We will take a look beyond typical IT Financial Management to show how financial, process and performance data can combine to provide new insights that help to run IT like a business. Topics covered will include IT operational reporting, IT Financial Management and how to provide performance dashboards for senior executives with HP Executive Scorecard software.
Relax. Come join us for some food and a drink after a long day, and possibly pick up a prize to take home. Apptio is hosting a social networking reception; just a casual time to talk with your peers and unwind.
Financial Management to Service Costing: From Alignment to Enlightenment Karen Garcia, Chief of Staff and
Gwendolyn Curlee, Staff Project Manager
How do you go from Financial Management into the Service Costing world? Walk through the experiences of someone who has moved IT and the business from reactive reporting of IT expenses to a collaborative environment of Service Costing. This discussion will include:
• Creation of a Service Catalog currently in use today
• Logistics behind costing out the services
• Presentations to business partners and their reactions
The logistics required for creating and maintaining a Service Catalog will be discussed, but the primary focus of discussion will be upon service costing.
Measuring and Managing Costs in a Virtualized Datacenter Catherine Fan, Product Manager
Virtualization introduces new requirements for cost measurement in the datacenter. The dynamic nature of virtualization, combined with shared resources mean that creating business accountability for IT resources requires accurate, flexible cost measurement. With the right cost measurement processes in place, IT can make better resource utilization and allocation decisions by ensuring accurate measurement of the true costs of virtualized workloads. In turn, this helps end users make informed decisions about service levels requested and provides better visibility of their associated costs. This session will discuss how to develop a model for measuring costs in a virtualized environment.
Activity-Based Costing Applied to IT Carbon, Cost, and Profitability Anthony Pember, Chief Executive Officer
The purpose of carbon footprint data modelling is to provide a basic starter template to empower users to tackle the basic problems of greenhouse gases that affect global climate change. This session discusses how to take practical steps, through the use of activity-based costing principles, to understand an organization’s IT carbon footprint and how it contributes to the triple bottom line of an organization by incorporating two aspects in one model – environmental and economic perspectives. The presentation will take you through the basics of carbon footprint modeling, how to create an auditable carbon footprint for your IT infrastructure, how to relate the footprint to profit, and how to empower senior personnel in managing their carbon footprint and a carbon reduction strategy.