Costnomics Offers New, Unique Solution for More Accurately Identifying True Total Cost of IT Storage Services
FREEMONT, Calif., Sept. 2, 2011 /PRNewswire/ — Costnomics, Inc., an innovator in IT Financial Management (ITFM), is offering what it believes to be the most accurate way yet to identify, justify and strategize the cost of IT storage services. The key lies in a “bottom-up” approach that uncovers hidden costs not typically detected by existing ITFM software.
“Most ITFM providers have adopted a top-down model for allocating costs that rely on assumptions–many of which are simply wrong,” said Hardeep Singh, Co-founder and President of Costnomics. “Manufacturers, on the other hand, have made a science out of cost accounting. We believe that by adapting and advancing these techniques using our unique data mining techniques, we can help storage service professionals understand the true cost of their services–not only to provide better value, but also to help them in their decision-making.”
In conventional ITFM products, Singh explained, many costs are simply not known, not allocated accurately, or both. Costnomics uses techniques tied to purchasing as well as the organization’s general ledger to obtain actual costs. Six individual IT cost pools are measured, including any incurred from outside the enterprise such as cloud costs, to generate true numbers. Where invoices do not agree with the company’s general ledger, variances are exposed for either reconciliation or distribution.
Using Costnomics’ high-visibility approach, storage professionals can understand–and perhaps more importantly, defend–the ROI and TCO of their investments. The platform also supports accurate chargeback of services to internal and external customers, as well as analysis of potential infrastructure investments such as those involved in virtualized, cloud-based, or hybrid storage solutions.
With storage costs consuming up to 20% of the IT budget of the typical enterprise, knowing the true TCO of services is critical. “Oftentimes, when IT unit costs are presented, the question arises as to how they were derived. Costnomics provides the kind of defensible system found in the manufacturing arena,” Singh stated. “We break it down into components that the IT executive can point to.”
Costnomics, a SaaS (Software as a Service) solution, is able to deliver its unique bottom-up advantage because it is fresh technology. Many existing products in the market have been adapted from other platforms or have evolved over time, making them unwieldy or inefficient. As a new solution, Costnomics nimbly executes the complexities of IT Financial Management with a degree of effectiveness that Singh believes will transform the category.
“IT Financial Management is filled with players who are using techniques that haven’t changed in thirty years. They’re simple and quick–but they aren’t accurate. Technology has changed dramatically over the years and, while the others talk a good story about bottom-up costing, none actually do it,” he said. “We’re the first to solve the problem.”
As a premier product, Costnomics supports predictive modeling, budgeting including “what if” analysis, IT service costing, investment analysis and management, chargeback of internal cloud services and other “Bill-of-IT” functions. The platform, already boasting a growing customer base, is currently available in English, French, Russian, Spanish, German and Japanese with other languages on the way, making it a truly global solution.
Storage Decisions New York
Costnomics will be showcasing its ITFM platform as part of the Emerging Technology Showcase at TechTarget’s Storage Decisions New York 2011 Conference, September 19-20 at the Hilton New York Hotel. For more information, visit www.costnomics.com.
About Costnomics, Inc.:
Costnomics is a leading technology innovator in the area of IT Financial Management (ITFM). Its flagship product, delivered as a SaaS solution, is reshaping the ITFM space through its bottom-up approach to IT costing that delivers more accurate, actionable and defensible unit cost allocations. With its unique advantages, Costnomics is delivering greater value to large IT organizations by improving the bottom line profitability and the maximization of strategic value of their IT investments. Based in Fremont, California and with a technology development center in Pune, India, Costnomics is privately-held. To learn more, go to www.costnomics.com.
SOURCE Costnomics, Inc.