Best way to be equitable is via usage based charging, ala cell phone billing. 
First goal is to get a figure for the total costs that you want to recover from 
all your customers and over what period. Let's say it's 100 dollars over 1 year.

Then you figure out some categories to charge back for. Cell phones get minutes 
or text messages. For servers you want things like CPU and memory that are easy 
to gather via z/VM accounting records.

So let's try to recover 25% of our costs by charging for memory. So find out 
how much memory all your servers will be using (lets say 10GB over 1 year) and 
come up with a rate per GB of memory and charge each server some rate per month 
or year. Note that this won't be exact because what you forecast and what you 
really end up with over a time period might be more or less, so you might over 
or under charge. It's not an exact science.

Do the same thing with CPU. Estimate total CPU for all servers for some period 
then divide that into your $75 to get a rate per CPU second. This is hard the 
first couple years until you build some history of how much different servers 
consume. But this is basically what phone companies do to come up with a per 
second rate.

If you end up getting too much money back, you can use that to enhance your 
services, or rebate back to your customers, or lower rates next time around. If 
you undercharge, you raise your prices next cycle.
__________________________________
Tom Stewart
Infrastructure Analyst
John Deere - z/OS Support Services
em: [EMAIL PROTECTED]
__________________________________




-----Original Message-----
From: Linux on 390 Port [mailto:[EMAIL PROTECTED] On Behalf Of Mike Hamner
Sent: Tuesday, July 01, 2008 2:41 PM
To: [email protected]
Subject: Costing Model for Linux-390

I'm new to this group.  We are also a new z/Linux shop and are currently 
bringing up z/Linux.  We are trying to determine a good costing methodology to 
apply to this environment to be able to distribute cost back to our customers 
in an equitable manner.  Does anyone have experience with doing this and have 
you defined a cost model strategy that you would be willing to share?

Michael E. Hamner, CDCP
IT Architect/Engineer
Chief Technology Office
National Business Center
U.S. Department of Inerior
7301 W. Mansfield Ave.
Denver Co. 80235
303-969-6619

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