IT Services Cost Optimization

Understand and optimize the full cost of every IT service.

Connect service cost, consumption, and business demand so IT leaders can act on the right cost levers.

SmartC
IT Service Cost Portfolio
Review
Services
96
Annual Cost
$42.8M
Open Actions
24
Service
Unit
Unit Cost
End User Computing
User
$148
Application Hosting
Workload
$392
Service Desk
Ticket
$21
Service Cost Opacity

Move from account-level spend to the cost of the services IT actually delivers.

Costs trapped in spreadsheets
Unclear service composition
Shared costs without defensible allocation
Consumption disconnected from cost
Unit costs that cannot be explained
No clear service-level cost action
IT Service Catalog

Define the services IT provides and how they are consumed.

Service name and description
Service owner and consumers
Service components and cost drivers
Consumption unit and service level
End User Services
Workplace, devices, collaboration, and support
Application Services
Hosting, platforms, integration, and support
Infrastructure Services
Compute, storage, network, and data center
Security and Shared Services
Common enterprise technology services
Service Cost Model

Translate technology spend into the full cost of IT services.

Financial data
General ledger, invoices, labor, and recurring expenses.
Technology resources
Applications, infrastructure, assets, and vendors.
IT services
Services delivered to business consumers.
Business consumption
Who consumes each service and how much.

General ledger, invoices, labor, and recurring expenses.

Service Cost Composition

See what makes up the cost of every IT service.

Internal and external labor
Vendors, contracts, and support
Applications, software, and cloud
Infrastructure, assets, facilities, and shared costs
SmartC
Service Cost Composition
Review
Cost Component
Annual Cost
Share
Labor
$4.1M
41%
Vendors
$2.8M
28%
Technology
$3.1M
31%
Fully Loaded Service Cost

Make direct, shared, and overhead costs visible.

Direct service cost
Shared platform cost
Allocated overhead
Total cost of service
Service Unit Cost

Understand cost per user, device, workload, ticket, or service unit.

Total service cost
Service consumption units
Cost per unit
Unit-cost trend over time
SmartC
Service Unit Economics
$148
Service
Cost
Units
End User Computing
$8.9M
60K users
Service Desk
$3.2M
152K tickets
Application Hosting
$5.6M
14.3K workloads
Service Consumption

Connect service usage to the business units that consume it.

Business unit
Application or product
User, device, workload, or transaction
Consumption volume and cost
Showback and Chargeback

Communicate predictable and trustworthy IT allocations.

Service consumed
Consumption quantity
Unit rate or allocation method
Cost assigned to each business unit
SmartC
Service Cost Statement
Business unit view
Service
Units
Rate
Allocated Cost
End User Computing
8,420
$148
$1.25M
Service Desk
18,100
$21
$380K
Service Cost Trends

Track cost, consumption, and unit-rate changes over time.

Total cost trend
Consumption trend
Unit-cost trend
Budget and forecast variance
Service Cost Drivers

See which resources and consumption choices drive each service cost.

Labor mix and support model
Technology-resource consumption
Vendor and contract cost
Business-unit demand and service level
People
Internal and external delivery effort
Technology
Applications, platforms, cloud, and infrastructure
Suppliers
Contracts, support, and managed services
Demand
Consumers, volumes, and service levels
Service Overlap

Identify duplicate services and overlapping delivery models.

Multiple services for the same outcome
Parallel internal and external delivery
Duplicate platforms or support scopes
Low-consumption service variants
Service Optimization

Optimize service cost without losing the business outcome.

Resize
Align service capacity and consumption.
Standardize
Reduce avoidable service variants.
Consolidate
Combine overlapping service models.
Redesign or retire
Change services whose cost no longer matches value.

Change services whose cost no longer matches value.

Service-Level Cost Actions

Turn service-cost evidence into accountable decisions.

SmartC calculates. People approve consequential service changes.

Assign a service owner
Validate cost, consumption, and unit rate
Approve the service-level cost action
Track the completed outcome
Finance
General ledger, labor, invoices, and budget
Technology
Applications, infrastructure, cloud, and assets
Service Management
Catalog, ownership, demand, and service levels
Business Data
Consumers, units, and business drivers
Before You Act

What to know before optimizing IT service costs.

What is an IT service cost model?
It translates financial and operational costs into the full cost of the services IT delivers.
How are shared costs allocated?
Use documented allocation rules and service-consumption drivers rather than unsupported assumptions.
How is service unit cost calculated?
Divide the approved fully loaded service cost by the relevant consumption unit.
What is the difference between showback and chargeback?
Showback communicates cost and consumption; chargeback assigns those costs to the consuming business unit.
Does this replace Vendor Spend Optimization?
No. Vendor spend is one input to the cost of an IT service; this product explains and optimizes the complete service cost.
Does this replace IT service management?
No. Service-management data supplies catalog, demand, ownership, and service-level context for service costing.
Book a Demo

See service cost, consumption, and unit economics in one view.

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IT service cost assessment.

Review service definitions, cost composition, allocations, consumption, unit cost, business ownership, and service-level optimization opportunities.

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IT Cost Optimization software and expert-led services across the major areas of enterprise technology spend.

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