Do you know what your cloud use really costs?

As cloud services grow, there are more expenditures to track than ever. But understanding why you’re spending is as important as knowing what you’re spending in the cloud.

Do you know what your cloud use really costs?
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In these days of cloud services and BYOD, you can’t always tell what you’re spending on IT by looking at purchasing agreements.

You can start by asking your finance team, but if you’re a large company you don’t want to be digging through spreadsheets and invoices to find out what you spent on iPads last year, Andrew Bartels, vice president and principal analyst at Forrester, told CIO.com. He suggests turning to Aptio or ServiceNow for services that provide detailed analytics on technology spend and performance. “That will tell you what you spend on Apple versus Samsung tablets; which models and which versions in which departments.”

More broadly, Bartels recommends dividing IT spend into new projects and what Forrester terms MOOSE — spending to maintain and operate the organization, systems and equipment. “The first is about creating new capabilities to help you strategically and operationally; the second is to maintain your current level of business to make sure you can continue to do what you need to,” he says.

But don’t be too prescriptive about the balance between those and how your organization compares to industry benchmarks, he warns. Size, industry sector and where you are in the purchase and replacement cycle all affect what you should be spending. Plus, if you’re below the industry average on IT salary, that might mean you’re running too lean and risk losing qualified staff.

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