The management of workplaces, the hosting of applications and company data is often part of an umbrella contract. It is not always clear to companies whether they are paying a competitive price for this service and in which areas improvement can be achieved. Sometimes a contract has grown considerably over the years in the number of services and the volume purchased, without agreements on cost savings. Cost allocation of cloud services in a complex organization can also be a cause.
Cloud strategy
The market is switching from traditional workload to other application architectures such as PaaS and container technology. A TCO approach to IT infrastructure, which goes beyond the usual operational costs, is an ideal basis for a financially substantiated renewal plan. Calculating a cloud strategy makes clear how the public cloud can be combined with IT services. In addition, it substantiates the choice to extend a contract with the current supplier or a new contract with another service provider.
35%
cloud costs are wasted expenses.
10%
lower costs and 5% higher quality after performing an infrastructure benchmark.
70%
of CIOs wants to make IT management more efficient by applying AI.
9
weeks is the average processing time for determining the baseline IT infrastructure services.
64%
of the enterprises wants to save costs on the cloud.
In the comparison, not only does the equivalence of services play a role, but also the risk profile, cost structure and life cycle management. A baseline measurement takes stock of the current situation concerning IT infrastructure, which is compared with market data from the Metri Component Based Measurement Framework.
In conformity with the market
Costs are made transparent in a periodically recurring rolling report, containing the number of changes. This detailed insight provides concrete input to bring the contract to a market level. The organization of operational processes offers tools to get a grip and control of the volumes purchased and to rationalize IT services step by step. This is the basis for improving the costs and quality of services or calculating business cases around cloud strategies.
Component Based Measurement
Metri uses a service-oriented benchmark model in which each component is measured and assigned a value. This method leads to realistic, accurate and complete results. We call this Component-Based-Measurement®. This approach ensures that the customer’s service structure is not lost. By benchmarking at the component level, it is possible to tailor components from reference customers to the customer. The specific structure of the customer does not need to be converted to a “default” model. Results are transparent and easy to interpret.
The Component-Based-Measurement® methodology provides a balanced insight into the performance delivered. In addition to costs and productivity, Metri takes into account various qualitative cost drivers such as volumes, complexity, quality (for example service levels) and service content at the component level.