Get familiar with the benefits of a chargeback system

Just like electricity, water and other utilities, you pay only for the resources you use when you implement a chargeback system. But is it that easy?

IT professionals usually have to squeeze as much as they can from the budget they're allocated. But some of IT's expenses can be recovered by using chargeback. With it, you can moderate the use of resources and charge departments based on their resource use. Instead of users being able to hoard resources that will go unused, chargeback will track those uses and charge for what is used.

These five quick links will help you gain some knowledge about chargeback and decide whether it's a fit for your business.

Using chargeback in a private cloud infrastructure

Inside a private cloud infrastructure, IT chargeback can lead the way in the battle against sprawl and poor use of resources. Using chargeback for the first time with private cloud can be an intimidating and extensive process, but it will result in proper resource consumption and help prevent sprawl. Learn how to use chargeback on a per-VM level in a private cloud structure.

Choosing between chargeback and showback

Not everyone is going to be happy when you decide to implement chargeback. Some will see their prices cut when they must pay based on their consumption, while others, who previously had been paying less, will have to deal with increased prices based on their usage. So, is chargeback right for your business, or should you go with showback?

Making money from the IT department

Higher-ups often consider IT costs to be a black hole, with money being spent continuously on ever-growing and ever-changing technology. But IT departments can recover those expenses by using chargeback. When a business can see what it's using and has to pay for it, executives have to revisit the IT budget. But it's not simple to just implement chargeback -- there are hurdles IT professionals have to clear.

Keeping control of resources

What's the simplest way to make sure someone doesn't take too many free things? Put a price tag on them. That's how chargeback can limit too many resources being allocated, for example, to a virtual machine. Chargeback not only will keep track of resources, but also can reveal where overprovisioning is taking place.

Tread lightly with chargeback

Chargeback brings a transparency that allows businesses to see what they are using and what they are paying for. But are the benefits easy to see? Not everyone can understand the breakdown of prices that comes with a chargeback, and according to one expert, it can hamper the relationship between IT and businesses.

This was first published in July 2014

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