Cost Pool Cost Sub-Pool Description |
Operating Expenditures (OpEx) |
Internal Labor | Expense | Employee wages, benefits, expenses & occupancy. |
External Labor | Expense | External contractor fees, travel, and expenses. |
Outside Services | Consulting | External consulting project-based services. |
Managed Service Providers | External managed service providers. |
Cloud Service Providers | External public cloud service providers including IaaS, PaaS, and SaaS. |
Hardware | Expense | Hardware expense of non-capitalized purchases (e.g., spare parts, consumables or equipment below capitalization threshold). |
Lease | Hardware lease expenditures (e.g., hardware purchased through a supplier or financial services leasing arrangement). |
Maintenance & Support | Hardware maintenance and support expenditures. |
Depreciation & Amortization | Hardware depreciation of capitalized purchases. |
Software | Expense | Software expense of non-capitalized software purchases. |
Subscription | Software subscription expenditures. |
Maintenance & Support | Software maintenance and support expenditures. |
Depreciation & Amortization | Software depreciation of capitalized software license purchases & software development efforts. |
Facilities and Power | Expense | Data center space, power, security and other operating expenses (e.g., co-location facility services, electricity, water, etc.). |
Lease | Data center lease expenditures. |
Maintenance & Support | Data center maintenance & support expenditures. |
Depreciation & Amortization | Data center depreciation of facility build and leasehold improvements (e.g., raised floor investments, power/PDU infrastructure, and rack build-out). |
Telecom | Expense | Voice and data network connectivity expenses including circuit and usage expenditures. |
Lease | Telecom lease expenditures. |
Cost Pool | Cost Sub-Pool Description |
| Maintenance & Support | Telecom maintenance & support expenditures. |
| Depreciation & Amortization | Depreciation/amortization of any capitalized telecom expenditures; typically, this will show up under Hardware or Facilities depreciation/amortization. |
Other | Other | Miscellaneous or non-standard expenses. |
Internal Services | Shared Service | Miscellaneous charges received from other internal shared services groups (e.g., HR service fees from the HR department). Real estate management fees for space and power should be included in the Facilities and Power cost pool. |
| Capital Expenditures (CapEx) |
Internal Labor | Capital | Capitalized labor (internal employees) |
External Labor | Capital | Capitalized labor (external contractors) |
Hardware | Capital | Capitalized hardware expenditures |
Software | Capital | Capitalized software expenditures |
Outside Services | Capital | Capitalized services |
Facilities & Power | Capital | Capitalized leasehold improvements |
Telecom | Capital | Capitalized telecom expenditures |