That's a great example, Dave. I was thinking of the chargeback for a phone system that billed for every conceivable feature - number of lines, call forwarding, etc. They couldn't even keep an accurate count of how many phones a department had, let alone all the individual features. The Call Center found it profitable to pay someone full-time to audit the internal phone bills - they more than recovered his/her salary.
I've set up a few chargeback systems, and found the most important characteristic was basing them on factors the user managers either controlled (such as number of employees) or understood (cost per account). That let them have reasonably predictable charges, and also let senior management hold them to the accuracy of that portion of their budget. If they aren't held accountable, they won't care what you charge and the whole thing becomes a farce. A good system will easily get the full support of the CFO. Steve ----- Original Message ----- From: David Lum To: NT System Admin Issues Sent: Tuesday, July 15, 2008 9:23 AM Subject: RE: VM Server & comm cost OMG: "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 describes one reason I left CSC! They charged Textron per live port on each managed switch.so of course Textron would semi-regularly audit what ports they were using.the problem is since the switches were run by CSC, the only way Textron could audit this was basically by manually checking the blinking lights, except that didn't cover ports they needed left open but not always in use, like conference rooms.(You may have guessed I was a Textron guy who got outsourced to CSC.). This of course also meant when a position went away, Textron had to call CSC to deactivate the port, and then call yet again to reactivate it when a new one was filled. It had some of the stupidest contract particulars, but I digress... Dave Lum - Systems Engineer [EMAIL PROTECTED] - (971)-222-1025 "..remember that, in the past, those who foolishly sought power by riding the back of the tiger ended up inside" - JFK From: Steve Pruitt [mailto:[EMAIL PROTECTED] Sent: Monday, July 14, 2008 3:55 PM To: NT System Admin Issues Subject: Re: VM Server & comm cost 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. 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