TBM Framework & Taxonomy

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  • 1.  TCO for Applications/Services

    Posted 03-14-2023 13:10
    Edited by Dominik Holasek 03-14-2023 13:11

    Hello!

    I am currently building TBM for my IT organization and have recently come across one thing that I am a bit confused about. When classifying towers/cost to the solutions layer, I have to distinguish the application support cost (Delivery) from the rest of the application cost, such as the license maintenance cost and related hosting/storage. 

    For example, when classifying our Finance apps, I assign the app support to the Delivery/Support category and all other app-related charges (depreciation of the perpetual licenses, annual license maintenance, related hosting, related database cost, etc.) to the Shared & Corporate/Finance category. 

    If the above is accurate, it is a bit more difficult to understand the TCO of our Finance apps when using the Solutions layer, as the Shared & Corporate/Finance category won't show me the full picture - the Support of our Finance apps would be missing. The way I currently tackle this issue is by using the Business Unit layer, where I show the use of App Support consumed by the Finance department, as well as the entirety of the Shared& Corporate/Finance category. Another option I could think of is to create another tier in the Delivery/Support/App Support bucket where I would distinguish the different types of App Support we provide.

    How did you guys tackle this issue when presenting the TCO to your business partners? Also, please correct me if any of the above is wrong.

    Thanks!

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    Dominik Holasek
    Sr. Manager of IT Financial Operations / Vendor Management
    Juniper Networks
    Denver CO
    7193606197
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  • 2.  RE: TCO for Applications/Services

    Posted 03-17-2023 07:55

    Hello @Dominik Holasek

    We aggregate all costs to Applications as individual objects. Then we move the costs up, for now to Business Services, but I guess we could use also Solutions, etc. Going Towers / IT Infrastructure / Applications / Business Services allows us to aggregate costs and then report on them to suit our purposes.



    ------------------------------
    Guillermo Cuadrado
    Senior Technical Manager
    Amadeus Data Processing GmbH
    Erding
    +49 172 8696 790
    ------------------------------



  • 3.  RE: TCO for Applications/Services

    Posted 03-24-2023 00:52

    Hi @Guillermo Cuadrado ,

    That is very interesting, thanks for the insights!

    So just to confirm , you include the cost of app support in the Business Services layer as part of each service (and not as a separate service) to capture the total cost?



    ------------------------------
    Dominik Holasek
    Sr. Manager of IT Financial Operations / Vendor Management
    Juniper Networks
    CO
    7193606197
    ------------------------------



  • 4.  RE: TCO for Applications/Services

    Posted 03-24-2023 04:35

    In principle, yes. We have a few, small, exceptions, but that's the rule.



    ------------------------------
    Guillermo Cuadrado
    Senior Technical Manager
    Amadeus Data Processing GmbH
    Erding
    +49 172 8696 790
    ------------------------------