A challenge on the horizon - accounting for virtual environments

A challenge on the horizon - accounting for virtual environments

Summary: I read an insightful post The case for chargeback and virtual appliance that was posted by Alex Barrett yesterday. He brings up several interesting points about accounting for virtual environments.

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TOPICS: Virtualization
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I read an insightful post The case for chargeback and virtual appliance that was posted by Alex Barrett yesterday. He brings up several interesting points about accounting for virtual environments. Thanks, Alex, for calling our attention to this issue.

As with other posts I've seen, this one seems to equate virtualization with the use of virtual machine software. While the points presented are worth considering, it would be wise for IT decision-makers to take a broader and deeper view of the whole concept of virtual environments. Unfortunately, those who take that view are likely to see an even bigger problem than the good Mr. Barrett examines.

Rather than just lumping all IT-related costs together and accounting for them as part of the IT budget, many organizations use the instrumentation that is found in their operating environments, data management tools, application frameworks and, in some rare examples, the applications themselves in order to construct a way to pass on the costs of running a IT-based solution to the business units or departments that use that solution.

These organizations have found that it is very difficult to build a valid chargeback system for today's multi-platform, multi-tier, Web-based or service oriented architecture solutions. Adding virtualization in the form of virtual machine software or operating system virtualization/partitioning makes the challenge even greater than before. Those who consider:

  • access virtualization
  • application virtualization
  • all of processing virtualization
  • storage virtualization
  • network virtualization
  • security services for all of those layers

find accounting for solution usage so that costs can be properly passed on to the appropriate business units or departments to be more than a bit daunting.

The use of virtualization, of course, didn't create this problem, it has just magnified and intensified a problem that already existed.

How does your organization account for system usage? Is it done the same way for virtualized environments?

Topic: Virtualization

About

Daniel Kusnetzky, a reformed software engineer and product manager, founded Kusnetzky Group LLC in 2006. He's literally written the book on virtualization and often comments on cloud computing, mobility and systems software. In his spare time, he's also the managing partner of Lux Sonus LLC, an investment firm.

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  • Chargeback

    I am working in an a helth care organization for the goverment in Sweden.

    60 tusend of users, 3000 Applikations, 12000 Systems.

    That will be consolidated to fore different site
    based on communication redudans gates in the region.

    There we will hold central backup, Virtual hardware, and more.

    We shell be able to shot one of the fore down for replacement
    on new purchase. and still have spare.

    Now we go Virtual. And no Check for charge back.

    Mybee you feel the same. A lot of work done right, and nobody
    gets to know it.

    Always the big boys get the credit for it if any one.

    I have the big solution.

    From a external supplier "Provment" i got figgers on use of my virtual worlds. Same on sinlge hardware as shared. So a can prove that the customer gets what he had on the single one and more. Sheeper and more power. Easy to order extra CPU, Disk whatever. No long budget work with hard finance departments. just a phone call to IT to get it. Easy way to get contracts
    that is handle fast and right.

    And to charge back what they use i have built a system thats
    charge back the cost on tree to fore years for the byers based on us of; Personell, Computer room, Electric, Cooling and so on.
    Of cource the purchase and payoff for the hardware.

    To this i added several model for the purchase to the customer.
    They can by right of on what they use or
    Step model based by 1500 RU/h to 45000 RU/h using of Resurce units based on

    consumtion of CPU, Memory, Disk and communication.
    All of this become RU/hour in 24 hour clock to sell.

    Or fixed price for special customer (Easy to run)
    Or Special price that can be low as you whant Premium customer.

    Or You calculate bottom to top and set a price.

    It's on the run know in the organbisation and soon on the market.

    Intrested??

    Contact www.Provment.com ask to be connected with Ingvar Lundholm

    Contact me ingvar.lundholm@vgregion.se
    inglu32