The Professor was recently asked about Application Cost models.
While ITIL does not speak specifically about “Application Cost Models,” there is information about how to create a service cost model using ITIL’s Financial Management process. From ITIL’s perspective, an application is one part of an end-to-end service.
Developing a cost model involves:
While ITIL does not speak specifically about “Application Cost Models,” there is information about how to create a service cost model using ITIL’s Financial Management process. From ITIL’s perspective, an application is one part of an end-to-end service.
Developing a cost model involves:
- Identifying all costs attributed to the service (hardware, software, salaries, accommodations, external services, transfer costs (e.g., from other internal units)
- Determining which costs can be directly tied to the service
- Deciding how to fairly apportion indirect costs (e.g., infrastructure, technical staff time)
- Adjusting the total to allow for unabsorbed overhead costs (e.g., administrative or managerial salaries, building/accommodation costs such as a data center or IT office space)
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