Prior to any migration to cloud services, implementing pay-what-you-consume strategy, it is essential for organizations to identify the true usage of IT services. There is a need to consolidate all IT related resources provisioned to each one of the cost centers in order to measure and quantify the allocated and used resources.
Business actions are taken by executive decision makers based on their understanding of the topic in context, how it contribute to reduce costs and generate business grow; or in simple words – maximize profit.
Correlata will identify the IT infrastructure elements and services allocated to each LOB, Application and environment, identify orphan, leftovers and miss-configurations exposing allocated but not in use IT resources and combine it with customer’s own costs to reflect the real IT infrastructure burdening, so the IT requirements to new cloud services will encompass the real need rather than preserve inefficiency using an excellent momentum of change.
Correlata For Efficient Data Center
Executives were used to treat IT resources as “free resources”, shared by the whole organization and financially covered by the IT department P&L. The problem is that IT department are running as a cost center with no profit, they provision different types of IT resources and services tiers to LOB with no alignment to their business contribution. Moreover, IT departments stops to behave as a one stop shop to deliver IT services. IT consumers are using additional IT resources such as self, automated and internal IT resources.
Business initiatives became more frequent and demand immediate IT infrastructure resource allocations. Although IT provisioning became a commodity, there is a negative impact on the liberty to provision “unlimited virtual resources”. There is an illusion that it is free with no impact on direct costs and need of additional supporting IT resources and services.
LOB have different needs implementing IT services. Some of them wish to adopt green & lean computing strategies, mainly reflected by IT efficiency measurement. Others are cost sensitive and there are also customers that need to ensure that the amount of IT resources allocated are fully aligned to the right applications and services providing business value.
Business owners and Financial Stakeholders are experts in calculating P&L algorithms for fiscal investments, but lack of tools to realize it on IT investments. They are bombarded by all interested infrastructure vendors with many ROI formulas trying to convince on ROI but without any tool to identify the type and amount of IT resources and services really used by Applications, LOB and environments.
As there are different ways to provision IT services and also different tiers of resources and services to consume, it is essential that each LOB will be accountable for the consumption of IT services as he is accountable to the way they are doing business. Each financial owner will consume that right IT service with the right tier that will fit their need and the risks that they are willing to take.