Computing Edge

Make the first assignment of cloud computing costs to the IT department
Cloud computing is really an IT responsibility at heart. You might make arguments to the effect that other departments are gaining benefits through the use of the program but that does not remove the primary responsibility that is associated with the program. The IT experts might actually be involved in campaigning for the installation of the program. The restructure of the department will need to consider this option as one of the ways in which costs can be effectively rationalized on a grand scale. Setting the costs in this way helps in future development projects.

Use billing codes to diversify the costs of cloud computing
When you are moving down the line, it is important to use costing codes in order to identify usage of cloud computing facilities. For example if the finance department is going to contribute to the upkeep of the system, they will need to have reasonable explanations of how much money they have used. The resources will then be managed on a basis of usage. The departments that tend to take the lion’s share will need to find the means through which they can contribute to the costs.

Try to identify overheads for the entire organization
At the head of the organization, there will be departments that indirectly benefit from cloud computing facilities but yet no cost code can be assigned easily. For example the cleaning department might not use the project but they will benefit when that technology is used for processing wages. Rather than giving the personnel department a headache through the provision of individual codes, it is better to use overhead costing systems for these departments.  In that way the costs will be rationalized and you will reduce the level of bureaucratic accounting within the organization.

Divert cost savings into supporting the cloud computing project

If you are going down this route, it is important that you divert any savings into managing the costs of cloud computing and fully researching cloud computing providers. The project needs to be self sustaining. You can be part of the solution by ensuring that all the products are used according to the original aims of the commissioning strategy. If any department reduces its IT costs, then a proportion should be reinvested into facilitating the technology that has enabled those cost savings. For example the personnel team might make savings of $120,000 and then use $10,000 of that cost factor to fund the cloud technology project.