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๐—ช๐—ต๐˜† ๐—ง๐—•๐—  ๐—ถ๐˜€ ๐˜๐—ต๐—ฒ ๐—บ๐—ผ๐˜€๐˜ ๐˜‚๐—ป๐—ฑ๐—ฒ๐—ฟ๐—ฟ๐—ฎ๐˜๐—ฒ๐—ฑ ๐—ฐ๐—ผ๐˜€๐˜ ๐—ฐ๐—ผ๐—ป๐˜๐—ฟ๐—ผ๐—น ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†?

By Dinesh Divakaran posted 18 days ago

  

Everyone talks about FinOps when it comes to cloud cost control.

But TBM?

Itโ€™s the only framework that provides a structured way to align IT spending - both digital and non-digital - with business value.

Today most IT cost-cutting efforts focus on cloud costs.

But what about on-prem data centers, networking, end-user computing, software licensing, IT service management, and physical infrastructure?

Thatโ€™s where TBM shines.

Unlike FinOps, which primarily focuses on cloud cost management, TBM covers all IT spend - digital and non-digital.

That means:

โœ“ On-prem data centers (server costs, cooling, power, maintenance)
โœ“ SaaS and enterprise software (license costs, renewals, shadow IT)
โœ“ Network infrastructure (bandwidth costs, MPLS, SD-WAN optimizations)
โœ“ End-user computing (desktops, mobile devices, IT support costs)
โœ“ IT services & outsourcing (managed services, BPOs, contract negotiations)

This is what makes TBM different - it breaks IT costs into layers:

โœ“ Cost Pools โ€“ The raw IT expenses (hardware, software, labor, facilities, etc.).
โœ“ IT Towers โ€“ Logical groupings like compute, storage, network, and applications.
โœ“ Products & Services โ€“ The services IT delivers (e.g., CRM platforms, cloud storage, collaboration tools).
โœ“ Business Units โ€“ The actual consumers of IT resources (sales, marketing, HR, etc.).

This multi-layer mapping gives granular visibility into IT spending.

This enables CIOs and CFOs optimize across hybrid IT environments.

๐—ช๐—ต๐˜† ๐—œ ๐—น๐—ผ๐˜ƒ๐—ฒ ๐—ง๐—•๐— ?

Most organizations optimize reactively - shutting down workloads, cutting headcount, or delaying upgrades.

TBM forces a proactive, data-driven approach by integrating:

โœ“ Cost transparency โ€“ Mapping IT costs to business units, services, and outcomes
โœ“ Showback/chargeback โ€“ Assigning costs directly to business teams for accountability
โœ“ Unit economics โ€“ Measuring IT efficiency per unit of business value (cost per transaction, cost per API call, etc.)
โœ“ Benchmarking โ€“ Comparing internal IT costs with industry standards to identify waste

The result?

โœ“ IT isnโ€™t just seen as a cost center - it becomes a strategic partner.
โœ“ Cost-cutting doesnโ€™t compromise performance or innovation.
โœ“ Businesses make smarter investment decisions, balancing cost, quality, and value.

Why TBM is still underappreciated?

TBM doesnโ€™t promise quick fixes.

It requires a mature cost culture, strong leadership, and deep integration into financial planning.

And the truth is - many companies donโ€™t want to do the hard work.

Theyโ€™d rather cut budgets blindly than ask the harder question:
"Is this IT spend actually driving business value?"

The companies that do embrace TBM gain full control over IT costs - cloud, data center, software, infrastructure, services, everything.

TBM is about spending right, not spending less.

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