What does central IT really cost? - An attempt to find out
What does central IT really cost?
An attempt to find out!
Head of IT Services University of York
• To understand where money is spent.
• To be able to compare our costs with those of
other providers- cloud…..
• To be able to price services that we offer to
• To have evidence to argue for more resource.
• To understand central vs. local provision costs.
Its worth noting…..
Our methodology evolved, we had to start
How- understanding services?
1. Started with getting an understanding of
our systems and services
– Finance system
– Active Directory
2. Listed physical and virtual servers and
attributed each server to a service
There were lots of gaps!
3. Got a handle on license and maintenance
– Hardware maintenance
– O/S licences
4. Added up hardware capital costs
5. Worked out a cost for a virtual machine
7. Worked out a cost per Gb of storage
– Differentiated tiers
8. Attributed these costs across the different
9. Group heads allocated staff-time to the
previously identified services
10. We attributed staff costs to services
– Difficult to do as no time sheets
– Accounted for time spent supporting non-central systems
Work in progress…..
• Software license costs
– To date a broad brush for major systems
• Attribution of data centre costs
– Running costs
• More accurate attribution of power and cooling
– Can do it per server
• More sophisticated use of TraC costs
• Add in depreciation of capital costs
• Cover whole University
Keeping up to date
• Attribute purchase orders to service
• Once model in place and costs known shouldn’t be
difficult to keep things up to date
• Need a firm grasp of services at a detailed level
– Takes time
– Things get missed out
• Staff cost allocation without time sheets is a best
• We used an iterative approach for obtaining
– This annoyed people
– It could have been done in one iteration
• How to allocate network costs or other costs that
are truly infrastructural?
– How do you cost the network for student record