Key ITIL Processes For Cloud Computing: Service Provider Perspective (Internal Facing) - Financial Management

ITIL and Cloud Computing Series - Part 16

With cloud computing the 'Unit' of charging has to be defined as charging is based on resource utilization, transactions, etc. Cost has to be properly allocated to different customers to ensure effective accounting and charge-back. Also, effective budgeting process would be required as all investments has to be strongly justified. The process has to be capable to provide details on return on investment (RoI) and total cost of ownership (TCO) of cloud services.

Key ITIL Processes For Cloud Computing: Service Provider Perspective (Internal Facing) - Capacity Management

ITIL and Cloud Computing Series - Part 15

In the previous post I had discussed about the sudden surge in demand. The sudden surge in demand has to be fulfilled. Thus, the service provider has to ensure the availability of sufficient capacity. Not only that they have to maintain a balance between the utilized and excess capacity. Excess capacity would mean wastage of investment while the over utilized capacity reflects a potential threat for performance degradation. So capacity management and forecasting becomes a very complex and critical activity.

Capacity management has to be tightly integrated with supplier management process.