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Welcome to SIMTEL Technologies, (CALL NOW 01223 926009 if interested)
 
We have a new product for you IT Spend Analyser™.
 
We take data from your accounting system, payroll and asset register and after some careful manipulation, create a Cost by Service based view of your IT spending! 
 
We did this so you will save money on your IT Spend or know why you didn't.
 
All we need to achieve this is just three files from your Finance department.
 
Here is an example; "How much does it cost to run the local area networks in this company?"

IT-Service-Detail.jpg

Do you have this information for every service in your IT Service Library?
Can your IT Director tell you how much email costs per user?
Could you tell your CEO if he asked? ...and if he wanted to check that figure?

Terminology
Operating = OpEx or operational expenditure, things you pay for ad-hoc, if it's not Staff or CapEx it's OpEx.
Staff =  Parts of IT departmental time, it may take 5% of Fred and 10% of Mary to keep the LAN working.
Assets = Hardware, usually the things you bought that were big ticket items, now sat there depreciating away.
 


The Example

 
This is a typical line from IT Spend Analyser™ of an IT service that ran in 2013 for a company that spends $31m on IT.
 
The company from whom this data comes has some 127 services that the IT department supply to the business.
 
This IT service is Local Area Networking.

The brief to IT from last year was to steadily maintain the service at its current level. It was not a new service in 2013.
 
Starting at the left, here's what you can discern from this single line!
 
This company spent $13m on OpEx, $6.7m on physical assets and $10.9m on staffing costs making $31m in total.
 
Of that $31m total, $19.9m went on IT Infrastructure - up 9% on last year.
$11m OpEx - up 16% on last year.
$5.2m Assets - down 5% on last year.
$3.6m Staff - up 5% on last year.
Of that $19.9m, $2.6m went on Network - down 6% on last year.
$0.9m Operating - up 2% on last year.
$1.2m Assets - up 7% on last year.
$0.4m Staff - down 71% on last year.
 
Of that $2.6m, $729k went on Site LANS - down 8% on last year (and made up 2.35% of the total IT cost for 2013).

$344k Operating - up 40% on last year (and made up 2.59% of the total Operating cost spend for
2013).

$234k Assets  - down 31% on last year (and made up 3.49% of the total Asset cost spend for
2013).

$150k Staff - down 81% on last year (and made up 1.36% of the total Staff cost spend for
2013).
 
That $729k was a service shared by all business units on a headcount basis, because everyone uses the Local Area Network.
 
R&D have 290 heads and therefore consume $87k of service, Operations 730 heads consume $219k and so on...
 
Clicking the other submenu headings (BU1, BU2, Period, Quarter, Budget) will give you what you expect!

The company total headcount is 2,426. The cost per user is $301, made up of Operating $142, Assets $97 and Staff $62.
 
If you recruit a new member of staff to any business unit, IT need $301 added to the IT budget to provide that person with LAN services.
 
Don't believe the figures? You need proof? OK let's get drilling, click $729,063 for an explanation.