All,

I'm looking to "tax" my applications with IT Mgmt spend, weighting the spend to the applications by their current spend.  Largest applications would get a larger allocation of the IT Mgmt Tower spend; smaller applications would get a smaller allocation..  Has anyone done this?  Suggestions on how?

Thank you,

Audrey

Yeah, this is how we spread all of our overhead costs today. You can create an allocation line "From"=IT MGMT, Using Weighted..

For the weight by you can select "metric"

And select the metric you wish to weight on (Cost)

Travis,

I have a requirement to push the data up for the ITRT to the Applications

Master, so I'm doing a 1-to-1- relationship for the data from the ITRT to

Applications.  Would this still work?

Audrey

Yes, this should still work (i always create another metric for this but do not believe that is required with this new functionality), try it out in a branch and let me know if you have any luck. There is another method involving some formulas, but it requires you weight on a single allocation line, not the total of the object.

Travis,

Not sure how this would work because I wouldn't have a weighing # in the

data it's allocating to.  Thoughts?

So if you choose metric, you can weight on the value of that metric (cost follows cost), I do not believe you can weight on the same metric you are sending as that would create a perpetual circular reference, so you would ideally want to create a metric that mirrors cost and name it “shared” or something, then weight cost form ITRT to Applications based on the value of shared (chose weighted>column) as the driver.

Travis Cole

Office: 402-777-4409 | Mobile: 402-699-3715

Understanding this, just 1 last question.  Would the spend still show in

the Applications Master report?

I assume so, as it would become part of the cost of the applications object

Travis Cole

Office: 402-777-4409 | Mobile: 402-699-3715

I see where Audrey's concern lies about assigning the IT Mgmt spend to a metric other than Cost - and Travis has a good point about where you might encounter a circular reference.

@Audrey Mitch are you planning to report this through the out-of-the-box Applications Reports? or do you have a custom report that is locked to the Applications Object?

If you go with Travis' suggested approach, I would ensure that your total spend formula includes both the Cost metric + the IT Mgmt Metric/Cost Driver.

Ex:

Name of IT Mgmt to Applications Allocation = "(Applications) IT Mgmt Tax"

Total Burdened Cost of Application (YTD)

=Cost YTD + YeartoDate({(Applications) IT Mgmt Tax Cost Driver})

Now I'm wondering if you can reference other allocations as the weight basis for your IT Mgmt - App Allocation line...

We have not used this feature for our model because we typically use existing numeric columns in our data or other table transforms for weighting.

Hi @Audrey Mitch, there are multiple ways of doing it, but what I find the best way is if you have some sort of categorization of applications into Different Criticality Tiers such as 0 being most critical and 3 being least critical. 

The IT Management cost can then be allocation at 2 levels. 1st, allocated to the different Service Tiers based on the total App spend of each Tier. Given that Tier 0 is more critical, more often than not, it encompasses a lot of hardware, software and other aspects which make is expensive. 

From the Tier you can further allocate it to the individual apps either equally or based on the cost of each App or any other rules such as Business pillars, etc. 

Hope this helps.