Cost Analysis

Capacity and performance management of ICT services is inextricably linked to cost. There are a number of common scenarios where cost analysis can be utilised to achieve significant savings:

Over-capacity. Where excess infrastructure has been put in place for the service demand
Where excess infrastructure has been delivered to compensate for a poorly tuned system, e.g.
Oversized WAN connections to compensate for inefficient data transfer
Oversized CPU capacity to ensure a poorly tuned batch schedule meets tits SLA
Where ICT infrastructure or services have been procured at an above market rate, e.g. network services procured over long duration contracts at a comparatively uncompetitive rate
Limiting future infrastructure investment to best utilise technology cost compression

The Capacitas Cost Analysis Process involves some or all of the following tasks, depending on the problem domain:

Define the scope of the cost analysis exercise
Capture baseline capital and operational costs
Develop cost of service model
Recommend capacity optimisation measures, e.g. server/network consolidation
Develop cross charging mechanisms where multiple services or business products share ICT infrastructure

The Cost Analysis Service can be used for an existing service where major changes in business processes or infrastructure have resulted in a shift in the cost model. Alternatively, it may be employed during the development phase or business case of a new service, where it is especially beneficial in determining feasibility. Capacitas has considerable experience in delivering cost models of ICT infrastructure in excess of £100M.

Key Benefits

Identify potential areas for reduction of capital expenditure
Identify potential areas for reduction of operational costs associated with ICT hardware, e.g. software licensing, maintenance and support costs
Provides the business with the ability to accurately compare the cost between different products or services
Cost feasibility during product development phase
Rapid analysis of profitability when coupled with revenue forecasts

If you wish to find out more about the Cost Analysis Service please contact enquire@capacitas.co.uk.