Keep Rogue Cloud Software From Making IT Irrelevant

05.07.2011

IT executives whose focus is internal, rather than market-focused, may value and charge for their services based on fees that have nothing to do with what cloud providers are charging in the real world, adds Schreck. That just reinforces the idea that IT is out of touch, too expensive and too slow to deliver the specific functions business managers want, at a price they want to pay.

"A lot of clients I've seen charge back rates for storage, for example, that just don't mesh with what you see outside," Schreck says. "If I'm a developer trying to set up a pilot project and I put in a request and get a chargeback price quote that's completely out of whack, it's going to be very tempting to go outside."

Oddly, showback is more common in cloud projects than with more traditional systems, but most IT departments do not make a concerted effort to make their cost/benefit clear.

While 64 percent of IT executives are tracking utilization and cost levels for cloud and virtual infrastructures, 90 percent don't charge business units based on their consumption -a key element in the economics of cloud, according to a March report from the .

Half of those who track cloud costs report the cost as a lump sum to upper management, while one in five doesn't report them at all, the report showed.