VMware addresses the IT Finance question

Infoworld article VMware addresses virtual machine chargeback announces the arrival of VMware in the IT Financial Management space.  The product is called VMware vCenter Chargeback.

As a vendor of virtualization technology, VMware has made it possible for companies to use their hardware investments more efficiency, running multiple virtual server instances on an underutilized multi-CPU server. However, this technological advancement has compounded the problem that enterprise IT has in the ITFM space.

A few of the major ITFM pain points for corporate IT:

  1. IT is struggling to provide visibility into where all the IT expenditures are going.  Business Units want the ability to drill from dollar amount to the services they receive.  They want a multi-level chargeback statement.
  2. Business Units want to see why the services they use cost so much, and the unit cost of each service.  They have the option to bypass corporate IT and go with an external vendor.
  3. Business Units want to know if they can dial down a certain service to save money.  They want to be able to pick and choose service levels and investment.  Flat overhead allocation no longer satisfies them.

As you can see, VMware had injected themselves in the middle of this problem when they make sharing of IT infrastructure possible.  Now they have stepped up to provide the tools for IT finance to do showback or chargeback for virtual server resources.

Existing ITFM vendors better connect the dots and integrate this data into their systems.  If not, VMware may just move up the value chain and eat their lunch in a version or two, especially if spending on VMware products and services become a dominant component of IT infrastructure budgets.

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One Response

  1. Great post!!
    Thanks for sharing.

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