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Article #382

Re: Chargeback of I.T. Departments

#382
From: Ray W. Maynard
Date: Wed, 05 Jul 1995 00:00
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>I would greatly appreciate receiving any info on "Chargeback of I.S.
>Services". The Information Technology department in my company is
>planning to implement chargeback to users. Are there any user groups or
>other sources that deal with this subject matter?
>
>
>Regards
>Rocco Commisso
>
>
I can't tell you that we're doing it where I work now but tell you what
happened to a site that I USED to work at that had s chargeback scheme.

That site ran some large mainframes.  As is quite commonly done, the site's
bean counters came up with a $ amount that supposedly represented the cost
of running the computer and its facilities.  Then, at the end of each month,
each user was billed for a percentage of the $ amount equal to his/her
percentage
of the total CPU time used (well, not actually CPU time but a measure of
overall system resource utilization provided by the mainframe's O.S.).
That amount was often quite high, higher than some user's budgets could
handle.  Some, little by little, users went out and got UNIX workstations or
high-end PCs that could do the same work (in theory at least).  That left
fewer and fewer users on the mainframe to split the same basic cost per month,
leading to ever higher bills, leading to even more desertions.  The end of
the story is near; the mainframe is to be unplugged this September.  It's still
a viable system and could do the work that needs to be done...but billing can
be the death of a computing resource if one isn't extremely careful.

Just something to think about...

Ray
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From: "Ray W. Maynard" <Ray.W.Maynard@CDSMAIL.CDC.COM>
Subject: Re: Chargeback of I.T. Departments
Date: 1995/07/05
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