If You Are Not Managing Your Costs, How Can You Understand Value?

Technology is perceived as free since there is little visibility or understanding of the costs associated with delivery, except for costs associated with new initiatives or projects.


Many organizations manage costs meticulously through the development cycle. But once the solution is migrated to production, the ongoing costs are often lost in a single budget item as part of total operational costs.


The transition to the cloud and the use of cloud services is generating heightened interest in understanding the costs of technology delivery, since these costs are typically passed on directly to the line of business and, as such, directly impact the profitability and viability of the business service.


I’ll be addressing, these and related issues at the ITFMA World of IT Financial Management conferences in  Savannah, Georgia July 8-12.


The event run by the ITFMA incorporates 4 conferences held concurrently, including:



  • IT Financial Planning, Budgeting and Reporting;

  • IT Financial Management for Controllers and CFOs;

  • IT Asset and Expense Management; and

  • Government IT Financial Management.

Here are the sessions I’ll be presenting at ITFMA:


“To Infinity and Beyond”
The Impact of the Future of Technology on Your Job


(Wednesday, July 8, at 3 p.m.)


Technology change continues to accelerate; bringing with it new capabilities arising from areas such as big data, cloud, consumerization, mobile, and social. The pace of change for businesses is also accelerating driven by consumers, new competition, globalization, economic factors, and changing regulations. The combination of these forces is leading to business areas relentlessly pursuing faster time to market, looking to take advantage of new market opportunities, and seeking greater autonomy to select, design, and implement their own solutions to satisfy their own needs. Business is demanding faster decisions, minimum coordination overhead without losing benefits, and greater flexibility to change direction and pursue opportunities.


Organizations that exhibit these qualities are delivering greater market and business success, and the organizations that don’t, will lose out to those who do. As all these business and technology changes intersect in IT, IT sees the challenge of continuous change as it seeks to balance the goals of responsiveness to business and control of risk. This session will explore the intersection of the forces of change, their impact on you, your roles and how the new knowledge worker will demand the delivery of capabilities.


Using Metrics to Better Discover, Manage and Charge for Your Cloud Services


(Thursday, July 9, at 11 a.m.)


IT Professionals often think of metrics as a means of measuring system performance, often without a relationship to how those metrics are used to run the business. In this presentation, you will learn how to understand the business connection to IT metrics, how to identify what metrics are meaningful and appropriate, and the use of a suitable proxy for Service Management. This includes a review of how other technology industries use proxies for service measurement, management, capacity planning, and finance.


Effective Innovation Mandates Strategy to Execution


(Friday, July 10, at 9 a.m.)


As you strive to drive innovation to meet business needs, there is an urgent requirement to build an efficient IT service model to support those business initiatives. After all, the time it takes IT to provision and onboard applications directly impacts the growth of the business. You will need to model your portfolio and services to optimize the return of investments in order to achieve the capability of assembling new services quickly and easily. In this session we will explore optimizing your portfolio for greatest return, leveraging strategies to drive innovation, responding quickly and dynamically to changing business demands, and demonstrating effective spend management.


If you’re interested in financial management, cloud computing or financial transparency, there’s still time to register for the event. And if you have questions on these topics, feel free to tweet me @RobertEStroud.

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Robert Stroud

Vice President Strategy & Innovation IT Business Management at CA Technologies
Robert Stroud is vice president of innovation and strategy for IT Business Management at CA Technologies. Rob is dedicated to the development of industry trends, strategy and communication of industry best practices. Rob is a strong advocate for the governance, security, risk and assurance communities working closely with the community to author, develop and communicate standards and best practices. Rob also advises organizations on their implementations to ensure they drive maximum business value from their investments in IT-enabled business governance. Following a four-year term as an ISACA International vice president, Rob served on the ISACA Strategic Advisory Council, and is currently serving as ISACA ISO Liaison sub-committee. Earlier, Rob served on the itSMF International Board as Treasurer and Director Audit, Standards and Compliance, the itSMF ISO liaisons to multiple working groups and spent multiple years on the board of the itSMF USA. An accomplished author and blogger, Rob is widely recognized for perspectives on industry trends. He also has contributed to multiple standards publications including COBIT 4.0, 4.1 and COBIT 5, Guidance for Basel II and several ISO standards. Rob served as an active member of the ITIL Update Project Board for ITIL 2011 and in various roles in the development of ITIL v3 including the Advisory Group, mentor and reviewer. Prior to joining CA Technologies, Rob spent more than 15 years in the finance industry successfully managing multiple initiatives in both IT and retail banking sectors related to security, service management and process governance. Follow Rob on Twitter: @RobertEStroud

This article has 4 comments

  1. Managing costs…how about measuring them the right way as a start.

  2. Totally agree. Too many do not measure the correct aspects of costs and subsequently there is no metrics that make sense.

    Thanks for the comment.

    @Robertestroud

  3. Application maintenance is the real problem. The cost are enhancing the application ,maintaining the application, break-and-fix, etc and operational costs – the people who run the help desk, delivering upgrades to operating systems and storage environments, etc. These costs are real. How can we reduce this cost. Service level management metrics will only measure the application performance and availability whether it is hosted in cloud environments or inhouse. What are the metrics that we can use for reducing the total lifetime cost of application?

  4. Thanks for the informative article, I’ll be sure to share this agf.

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