Do You Have a Standard Model

for IT Costs?
The Challenge: Getting IT, Finance & Business Units on the Same Introducing ATUM: The Standard Model for IT Costs
Page About Technology Cost, Value & Decisions The Apptio TBM Unified Model™ (ATUM™) specifies how to marry cost data from corporate finance with IT operational data
to produce granular, actionable IT cost analytics. This information empowers IT leaders to manage IT as a business. Apptio
developed ATUM through our experience with 350+ customers and our role as the Technology Advisor to the Technology
Does this sound familiar? Business Management (TBM) Council.
For most organizations, there’s a mismatch of terminology and context that makes it hard to get alignment around
technology decisions. What to Gather How to Organize How to Measure What to Track

Business Units: I can

use my credit card to
buy a better service for
less money from a cloud
provider, so why should Data Taxonomy Model Metrics
I bother with IT? Source data Standard Standard costing Standard metrics
elements, formats, management rules to map and and KPIs to
IT: BUs make wasteful, and relationships categories for apportion general measure and

IT’s reckless technology

decisions and then
needed by
the Model
common IT functions ledger (GL) costs to
IT categories
manage IT cost
and value

Value? question my budget.

How can I be expected
to do more with less?

Finance: IT is one of
our largest costs and TBM Unified Model™ (ATUM™)
BUs don’t see enough
value. When can you get
me a plan to reduce the ATUM provides the following benefits:
IT budget? • Better alignment between IT, Finance, and BUs via common language and information about IT costs
• Confidence to manage the business of IT with the backing of peer-derived best practices
• Faster adoption of TBM disciplines via pre-packaged software built to the standard
• Easier, more frequent IT cost comparisons with peers via ATUM-aligned benchmarking
We get the problem: you have no shortage of corporate finance data,
Visit Apptio.com to learn how Apptio’s suite of TBM applications leverages ATUM to deliver these benefits and many more.
but it’s Greek to IT.
You’re struggling to relate financial information to IT budget If only there was a simple, fast, proven, way of translating
owners so they can make better decisions about servers, corporate costs into standard categories useful to IT decision
storage, networks, and projects. You’re more focused on makers. An automated ongoing process that provides How can you use this poster?
wrestling data than extracting meaningful analysis. Worse yet, repeatable, trended, and shared cost visibility... Shape conversations with your IT, Finance, and Business Unit partners. Put it up in your workspace, take it to meetings,
virtually no one has the patience to decode the complicated even order more posters for your colleagues at Apptio.com/ATUM!
formulas required for calculating even basic IT costs.
Standardized IT Cost Transparency The Apptio TBM
Unified Model™ (ATUM™)

1 What Data 2 How Should Costs 3 How Should Costs 4 What Metrics
Is Needed? Be Categorized? Be Calculated? Should You Track?
ATUM: Data ATUM: Taxonomy ATUM: Model ATUM: Metrics

CUSTOMER
Most customers start SALES MARKETING
Business Units & Capabilities SERVICE Financial Fundamentals Stewardship of technology
expenditures and investments
with 3-5 data sources
Business Unit 1 Business Unit 2 Business Unit 3 Business Capability 1 Business Capability 2 Business Capability 3
FINANCE 1 IT Spend vs. Plan (OpEx & CapEx variance) Cadence: monthly + quarterly

• General Ledger
Services Questions it answers How to use it
• Are you spending what you expected to spend? • Detect and correct anomalies early
• Fixed Asset Register End User Services Business Application Services • Which areas of spend are over/under plan? • Drive a culture of accountability
• Chart of Accounts
Client Communication Product Sales Manufacturing Customer Human Facilities & Cross-Function Cadence: monthly + quarterly
• Budget Computing & Collaboration
Connectivity
Management & Marketing & Delivery Service
Finance
Resources Assets Capabilities 2 Application and Service Total Cost
Weight by # of
Examples Computer Collaboration Network Access Product Development Customer Analytics Resource Planning Order Management Financial Planning Accounts Payable Recruiting Equipment Enterprise Knowledge application logins Questions it answers How to use it
Management
Mobile Communication Remote Access Product Planning Marketing & Manufacturing Customer Care General Accounting Treasury Talent Management Facilities • What does each IT offering really cost to deliver? • Uncover the “long tail” of application run costs
Advertising Corporate • How is spend distributed across apps & services? • Align IT spending with business priorities
Bring Your Own Productivity Inventory & Revenue Accounting Tax Workforce Communications
Device Sales Force & Warehousing Management
Print Fixed Assets Consolidation Cadence: monthly + quarterly
Channel Management Legal MANUFACTURING 3 Infrastructure Unit Costs vs Target / Benchmarks
Virtual Client Product Delivery
Payroll Internal Control SAP AUTOMATION SIEBEL
Customer Sales
Service Delivery
Procurement Questions it answers How to use it
TECHNOLOGY • How efficient are we? • Compare insource/outsource/cloud alternatives

• Servers • Storage Delivery Services Platform Services Infrastructure Services Emerging • How do we compare to similar peers? • Demonstrate efficiency to defend budget

• Network • CMDB Strategy & Security &

Development Support Operations Data Applications Data Center Network Compute Storage
• Cloud Provider Planning Compliance
Examples Technology Business Design & Service Desk IT Service Security Database Application Hosting Enterprise Data Data Network Physical Compute Networked Storage Internet of Things Delivery Track execution and delivery
Management Development Management Center (IoT)
Application Support Governance, Risk & Distributed Cache Message Bus & Voice Network Virtual Compute & File & Object Storage
Innovation & Ideation System Integration Monitoring Compliance Integration Other Data Containers Virtual Reality / Cadence: monthly + quarterly
IT Training Data Management Center Internet Connectivity Backup & Archive Augmented Reality
4 % of Projects On-Time, On-Budget, On Spec
Enterprise Testing Capacity Business Continuity Content Management Compute on Demand
Architecture Central Print Management & Disaster Recovery Data Warehouse Virtual Private Distributed Storage Block Chain
Search Network Mainframe (CDN) Questions it answers How to use it
Program & Project Deployment & Data Analytics &
• Are projects running efficiently and effectively? • Improve business governance of projects
Management Administration Visualizations Streaming Domain Services
• Detect and rein in or shut down runaway projects
PORTFOLIOS Business Solution Machine Learning Load Balancing
Consulting
5 % of Business-Facing Services Meeting SLAs Cadence: monthly + quarterly
• Applications • Labor
IT Vendor Weight by
• Projects • Vendors Management storage in use Questions it answers How to use it
• Are we delivering the agreed-to service • Meet service obligations to the business
Examples
IT Towers & Sub-Towers Benchmark Data Available from Apptio
COMPUTE STORAGE NETWORK
performance & quality? • Identify & correct quality slippage before it gets
out of hand
Security & IT
Data Center Compute Storage Network Output End User Application Delivery
Compliance Management
Prioritize and drive investments
Enterprise Servers Online Storage LAN/WAN Central Print Workspace Application IT Service Security IT Management & Innovation & Agility to change or transform
Data Center (Windows/Linux) Development Management Strategic Planning
Offline Storage Voice Mobile Devices Compliance
Other Facilities Unix Application Support Operations Center Enterprise Architecture Cadence:
SERVICE Mainframe Online Transport End User Software & Operations Disaster Recovery 6 % of IT Investment on Run, Grow, Transform the Business monthly + quarterly
Midrange Storage Project Management IT Finance
Network Printers Business Software
• Tickets Converged Infrastructure Mainframe Offline Client Management IT Vendor Management Questions it answers How to use it
Storage Conferencing & AV Database
Mainframe • How are we prioritizing KTLO vs growth? • Shift spend from Run to Grow and Transform
• Service Catalog IT Help Desk Middleware • Are we investing enough in innovation? • Align IT spend with strategic business priorities
Examples Deskside Support Mainframe Database Cadence:
Mainframe Middleware 7 % of Project Spend on Customer-Facing Initiatives monthly + quarterly

Questions it answers How to use it

Cost Pools & Sub-Pools Benchmark Data Available from Apptio INTERNAL EXTERNAL
SOFTWARE
• Are we investing enough on business-impacting
projects?
• Ensure that IT makes a relevant impact on external
customers
LABOR LABOR • Are we prioritizing the customer experience? • Detect & curtail internal-facing “science projects”
FORMATS Internal Labor External Labor Outside Services Hardware Software Facilities & Power Telecom Other Internal Services

• Spreadsheets Expense Expense Consulting Expense Expense Expense Expense Other By Shared Service Drive technology investments to
• Databases Managed Service Provider Lease Subscription Lease Lease
Business Value impact business outcomes
OpEx

Cloud Service Provider Maintenance & Support Maintenance & Support Maintenance & Support Maintenance & Support
• Flat Files
Cadence: monthly + quarterly
• XML & Web Services
Depreciation & Amortization Depreciation & Amortization Depreciation & Amortization Depreciation & Amortization 8 IT Spend by Business Unit
Questions it answers How to use it
CapEx

Examples
Capital Capital Capital Capital Capital Capital Capital • How does BU consumption impact IT costs? • Shape demand by showing BUs how
GL JOURNAL Route by cost • What is the relative IT cost of each BU consumption drives costs
ENTRY: WAGES center, account • Identify outliers to uncover over/under spend

Actual & Planned Costs code, org. chart

Cadence: annually
(Hypothetical Example) 9 Customer Satisfaction Scores for Business-Facing Services
Questions it answers How to use it
• Is IT serving business units well enough? • Identify & correct perception problems early

ATUM Includes Guidance to Integrate ATUM Provides a Standard Taxonomy ATUM Specifies a Standard Cost • How is IT perceived by internal customers? • Drive a culture of continuous improvement

Cost Source & Helper Data of Common IT Functions Model for Routing Costs 10 % of IT Investment by Business Initiative Cadence: annually

• Find the right data from existing sources • Align costs to common terminology • Pre-defined allocation rules Questions it answers How to use it
• Do IT projects line up with business priorities? • Align IT spend with business strategy
• Integrate appropriate source data columns • Automate categorization via mapping rules • Apportion costs to consuming elements • Are we investing enough in our strategic • Identify projects that do not contribute to
• Align format to standard • Customize or extend where needed • Weight costs via operational data initiatives? business objectives

Extensible & Customizable  |  Adopt in Prescriptive, Bite-Size Chunks  |  TBM = Technology Business Management Visit Apptio.com/ATUM to Learn & Order More