My suggestion:
  a.. First, decide what portion of your expenses you want to recover through 
this chargeback. For example, the various costs of the physical server, 
licenses, normal support time, time to set up or change a VM, etc.
  b.. Then consider what factors contribute to the cost of an individual VM. 
These are potential choices for the basis of allocating costs.
  c.. Next decide what actions you want the chargebacks to encourage. For 
example, if the chargeback cost of a VM is close to that of a physical server, 
you may be discouraging the use of VMs. Don't encourage behavior that will make 
more work for your staff from frequent configuration changes. For example, 
charging too much for disk space would lead people to request too little, then 
have to add later on.
  d.. Then decide how fancy you want to be, and how easily you can manage any 
particular design. I've seen chargeback systems that were so involved that the 
IT department couldn't possibly maintain accurate records of the details. This 
led to general disbelief in the accuracy of the charges and resistance to the 
whole system. That disbelief and resistance was fully justified - the bills 
really were very far from accurate. 
  e.. Try to look at what you'd be doing from the perspective of the department 
managers you'll be charging. This combines the two previous items and provides 
an insanity check.
  f.. Then go back through all of your earlier decisions and reconsider them in 
light of the other things you decided. You might decide to not charge out some 
basic costs of having capacity available, or reconsider what factors you want 
to charge for.
You want to end up with a system that's simple for department managers to 
understand, reasonably logical, and which encourages behavior that's in the 
best interests of the company. Remember that you can always adjust the details 
the following year, and you'll probably want to.


Steve


  ----- Original Message ----- 
  From: Cesare' A. Ramos 
  To: NT System Admin Issues 
  Sent: Monday, July 14, 2008 5:52 PM
  Subject: VM Server & comm cost


  Hellos to all.

   

  Wanted to see if anybody out there is charging depts. or business units for 
hosted servers in a virtual environment?  We have a few depts. and are 
entertaining billing back on vm server use.

   

  Thoughts / formulas / input..

   

  Thanks.

   

  CAR

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