Financing IT Services: Chargeback Models, Cloud, and Cost Analysis

This presentation provides a comprehensive overview of financing IT services, focusing on IT chargeback models, cloud services, and cost analysis. It explains the IT chargeback process, its benefits, and implementation steps. The presentation also covers the components of total cost of ownership (TCO), the importance of accounting systems for effective financing, and the concepts and issues surrounding charging for cloud services, including scalability, security, and vendor lock-in. By exploring these topics, the presentation aims to provide insights into ensuring the wise and effective use of IT services and resources within organizations.

Financing IT
services

About IT chargeback
 Ensures proper protection
towards the customers from
fraudulent activity
 The main parties associated
with chargeback are the
customer, issuing bank,
acquiring bank, card
network , merchant account
processor and merchant of
commercial bank.

IT Chargeback Model
 IT chargeback is a process where
department associates the major
costs with cost centre.
 This helps in tracking the
accurate cost that is needed to
spent on IT.
 This is used for the purpose of
accounting by an organization

Purpose of chargeback
 Ensures proper
responsibility throughout
the usage
 Ensures that all demands
of customers are met by
the IT department
 Provides better visibility

Steps for IT chargeback
implementation
 Phase1: selling the idea of
chargeback
 Phase2: organizing proper
steps for chargeback
 Phase3: arranging right
system s and processes in
place
 Phase4: base lining the
current situation
 Phase5: transferring the IT
budget towards the business
 Phase6: market and sell
services
 Phase7: learning the process

IT chargeback

Benefits of IT
chargeback
 Costs gets reduced
 Chargeback ensures that highest priority
projects are treated
 Ensures better customer services
 IT services also ensures streamlined
requirements towards the customers.

Costs of IT
 The components of total cost ownership
includes
 Acquisition
 Operating costs
 Personnel costs
 This helps in analyzing the costs and helps in
decision making process

Accounting system
 In order to ensure an
effective financing of IT
services it is important to
implementing account
systems within the
organization.
 Accounting system helps
in keeping proper track
on financial transactions.

Benefits of accounting
system
 The financial report can be
prepared without any error
 Easy compilation is provided
towards the future and current
accounting standards
 Ensures better data and system
security
 Offers better scalability towards
the growth
 Better internal controls are
offered

Concept of Cloud
services
 Cloud service offers better scalability
 Offers better resources
 Cloud computing offers on premises servers
 Cloud provides on demand resources
 The most effective feature offered with cloud is that pay
as you go architecture.
 This offers dynamic scale in order to meet the users need

Issues faced with Cloud
services
 The major challenges that are faced
with cloud services are as follows:
 Security issues
 Affects the performance
 Downtime
 Vendor lock in
 Control issues