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How to do Successful Chargeback for Cloud Services

Hristo Stefanov, Slinger Jansen, Ronald Batenburg, Eugene van Heusden, and Ravi Khadka (Utrecht University, Utrecht, and IBM, Amsterdam, The Netherlands)

Abstract: With pay-per-use pricing models, elastic scaling of resources, and the usage of shared virtualized infrastructure, ‘the Cloud’ offers more efficient use of capital, great cost reductions, and breakthrough agility. Yet, it turns out that to leverage the cloud advantages, organizations have to introduce cloud-specific chargeback practices. That is, they have to allocate IT service costs to business users in a way that reflects service consumption. To help organizations transition to a cloud environment, this work provides an overview of the factors that impact the design of successful cloud-specific chargeback models. The findings can assist organizations in the design of chargeback models that allow the business flexibility and cost reductions associated with the Cloud to be fully leveraged. The results are based on an empirical study involving twenty-five field experts from IBM and its client and partner network.

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