Become Your Own SaaS Provider
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User Rank: Apprentice
11/25/2013 | 4:47:15 AM
Absolutely agree
I agree to everything written in the story because my company does the same. We felt big difference when we applied to SaaS software for the first time. It was the monitoring tool Anturis to see the infrastructure of the company. We saved money on hardware and even hiring one more administrators because our current one said he would be able to cope with everything because of the new software.
User Rank: Apprentice
11/16/2013 | 2:48:40 PM
Re: Chargebacks?
Lorna you are absolutely correct. We too find that people are concerned about how allocation of costs can be managed. In scenarios where an enterpise uses the Virtual Tenancy model, where each tenant is provisioned with their own instance of the application, the usual methods can be applied since there are separate resources assigned to each tenant. If the Multi-Tenant model is used, the infrastructure is shared amongst all tenants and as you note, that means a different method of cost allocation may be needed.

One approach is simply to divide up the total cost and allocate it by a proportional metric such as number of users. For cases where that doesn't provide the desired level of specificity, some may wish to apply metrics such as transations, storage usage, users login times, or some other measure they can correlate with value received.

Corent's SurPaaS® platform has the built-in capability to do metering of application activity at the transaction level, and to interact with the cloud layer or OS information to gather and analyze data so that the metered activity, whatever it is, can be tracked, counted and the appropriate charges sent to the billing system. The proper allocation to the tenant is based on the user that perfomred the actions. This provides tremendous scope to allocate usage to the tenants with a high level of detail.

We have found that when the Multi-Tenant model is employed, it can lower the cost of service delivery by 5 to 15 times. These order of magnitude savings often make it easy for all participants to accept the simple allocation methods, as there are substantial savings for everyone.
Lorna Garey
Lorna Garey,
User Rank: Author
11/15/2013 | 12:17:45 PM
How would you recommend IT deal with charging back application usage in this model? When we have multiple instances of an application, all on their own servers or VMs, it's fairly easy to allocate costs; however, in this setup that seems more of a challenge.

Our data shows more of IT's budget being decentralized, so I believe this could be a key point.

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