Networking

05:00 AM
Commentary
Commentary
Commentary
50%
50%

The IT Agenda: Move Beyond the Free Lunch

Chargebacks can pay off big time once you implement a well thought-out system and work through the lingering kinks.

To put that situation in managerial accounting terms, the fixed cost of storage was miniscule compared with the variable cost of labor necessary to provide that storage. So we let users believe that getting more storage would be expensive and inconvenient for them, and somehow they managed to find other places to dump their junk.

But deception probably isn't the best basis on which to run a business. There's a better way to ease the pain all around: chargebacks.

Discuss Join other NWC readers in discussing this article.
Ah, Those Dreaded Chargebacks

Sure, chargebacks can be torture. How do you determine precisely what things cost so you can charge users accurately for your services? And how can you assure users that your prices are reasonable when you don't want to raise the prospect of outsourcing to vendor competitors?

Chargebacks are the only way to distribute costs fairly throughout an enterprise. And they can pay off big time once you implement a well-thought-out system and work through the lingering kinks.

Previous
1 of 3
Next
Comment  | 
Print  | 
More Insights
Hot Topics
6
Guide: The Open Compute Project and Your Data Center
James M. Connolly, Editor in Chief, The Enterprise Cloud Site,  7/21/2014
4
Understanding IPv6: Link-Local 'Magic'
Denise Fishburne, Cisco Champion,  7/24/2014
4
Network Security: An Oxymoron In The Cloud Era?
Rajat Bhargava, Co-Founder & CEO, JumpCloud,  7/22/2014
White Papers
Register for Network Computing Newsletters
Cartoon
Current Issue
2014 Private Cloud Survey
2014 Private Cloud Survey
Respondents are on a roll: 53% brought their private clouds from concept to production in less than one year, and 60% ­extend their clouds across multiple datacenters. But expertise is scarce, with 51% saying acquiring skilled employees is a roadblock.
Video
Slideshows
Twitter Feed