Every organization has shared IT costs which span multiple business departments. As organizations increase their adoption of public cloud resources, it becomes increasingly difficult to assign shared cloud resources to specific business owners, understand how to properly and fairly allocate costs, and to actually forecast future business unit budgets.
Feature Description: Leveraging Cloudabilities’ Business Mapping capability, Cost Sharing enables organizations to fully appropriate shared or unallocated costs back to the business in a proportional, fixed or even split distribution. Cost Sharing does this by granting full visibility into these costs by first grouping them together, then defines a set of rules to allocate costs back to the business or a department, and generates exportable reports. Cost Sharing saves your team time, reduces errors born from using spreadsheets, helps improve accuracy and provides institution-wide awareness of attributed shared costs.
In general, a cloud vendor’s support charge is applied at the parent account level and not at the departmental level, leaving the burden on Central IT/OPS teams to manually distribute the costs back a department, business unit or application owner. With Cloudability’s Cost Sharing, a cloud vendor’s support charge can be distributed back to the business as a proportion of what a business unit used, a fixed amount or an even split.
Typically shared organizational infrastructure and services, like databases or email servers, are split evenly amongst business units. However, what if a new R&D business unit is told to allocate 100% of its spend on the development of a new product and not overhead? Cost Sharing enables organizations to allocate a shared cost to all business units and split those costs evenly or proportionally while excluding the R&D business unit.