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Best practices for identifying "Addressable" and "Non-addressable" spend?

  • 1.  Best practices for identifying "Addressable" and "Non-addressable" spend?

    Posted Mon April 27, 2020 02:38 PM

    Really liked the recent webinar/video: 10 Ways Customers are Leveraging Apptio to Cut IT Costs.  Approximately 12 minutes in, they discuss analyzing "Addressable" and "Non-addressable" spend.

     

    Can anyone point me to some guidelines or best practices for identifying/tagging "Addressable" and "Non-addressable" spend in our cost source?

     

    Otherwise, I would love to hear if/how other organizations have approached this.

     

    Thank you!




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  • 2.  Re: Best practices for identifying "Addressable" and "Non-addressable" spend?

    Posted Tue April 28, 2020 01:37 AM

    It seems a slightly different way of asking the other evergreen question of Fixed vs. Variable.

    In the video, the clearest approach is taking a look at contracts and purchase orders and determining which ones can be either postponed or not executed. Ditto for some projects.

    At Amadeus we have stopped the migration of some applications to the cloud, postponed the migration program for at least a year, and are considering moving back some of the workloads we migrated last year. IMHO, the impact on our total OpEx would be small, but the thinking is that every cent counts.

    There's a lot more to be saved by addressing labor-related expenses. The company has released many contractors and they have established voluntary part time schemes. No lay-offs, except for external labor so far.


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  • 3.  Re: Best practices for identifying "Addressable" and "Non-addressable" spend?

    Posted Tue April 28, 2020 09:01 AM

    @Guillermo Cuadrado - thank you!  I like your approach.  We are working on analyzing ITP and CT now, to come up with some recommendations. 


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