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Understanding IT Costs

Understanding IT Costs. Peter James and Martin Bennett Jisc Costing IT Services (CITS) Project London, 10 th February 2014. Cost Distortions. Amazon Web Services. Jisc Costing IT Services (CITS) Project. CITS Stage 1: Janet X-Ray Financial Tool. University of York IT Cost Exercise.

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Understanding IT Costs

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  1. Understanding IT Costs Peter James and Martin Bennett Jisc Costing IT Services (CITS) Project London, 10th February 2014

  2. Cost Distortions

  3. Amazon Web Services

  4. Jisc Costing IT Services (CITS) Project CITS Stage 1: Janet X-Ray Financial Tool University of York IT Cost Exercise CITS Stage 2 • Repurposing York spreadsheet and experience into a generic tool • Costing specific activities e.g. data centres • Financial skills learning materials for IT staff

  5. Why Cost? • More strategic understanding • Benchmarking • Service costing • Budgeting/management responsibility • Decision support- investment, provision • Value for money • Continuous improvement

  6. An IT Cost Model PURPOSE RECORDED COSTS COST OBJECTS USE • Identify what an IT department does • Enable benchmarking • Find improvements and/or cost savings • Provide more robust data for specific decisions • Determine charges for services • Devolve budgets or assign financial responsibility • Track cost and VFM improvements over time • Improve accountancy systems to better support decision-making • Central IT • Staff • Hardware • Software • Other • Services • Individual • Group • Strategic Decisions • Cloud • Investment Decisions • Storage • Activities • Data Centre • Storage • V Machines • Local IT • Staff • Hardware • Software • Other • Management • Responsibility Benchmarking • Estates • Energy • Cooling • Power Supply • Other • Space/TRAC • Depreciation

  7. Where are the costs? • Within the organisation • Within central IT- staff is usually the main element- network is often the main hardware cost • In terms of users- 80/20 question • In terms of the future- more of the same- or step changes?

  8. How to allocate? • What needs to be allocated?- specialised applications? • Direct data- timesheets for staff?- equipment use • Pro rata • By proxy- staff time?- user base?

  9. Costing HPC and Storage • Not Just Cost- other factors- cloud may work best as part of strategic change • Not for everything- non urgent HPC- lower tier storage • Different solutions

  10. HPC & Cloud Considerations • Not just cost- other factors- cloud may be best as part of strategic change • Not for everything- non urgent HPC- lower tier storage • Multiple solutions e.g. for HPC- compute/store/memory bundles- speed & ‘virtual cores’

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