Software Technologies Inventory and Attributes - Financial attributes for the Software Technologies Inventory
Software Technologies Inventory and Attributes
Chapter 30. Financial attributes for the Software Technologies Inventory
Executive Summary: Chapter Overview
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Core Concepts
| Concept | Definition & Strategic Role |
|---|---|
| Annual Recurring Cost | The ongoing yearly cost of holding the technology, which is what rationalization actually recovers. |
| Cost Model | How the technology is charged — per core, per user, per instance, or flat — which determines how cost moves as usage changes. |
| Total Cost of Ownership | The fuller picture including support, infrastructure, and operational effort, which frequently reverses conclusions drawn from licence cost alone. |
Quick Q&A
Question: Why record cost here when finance systems already hold it?
Read More Below
Financial attributes record what each software technology costs the enterprise and who pays for it.
| Attribute Name | Maturity | Description and Notes |
|---|---|---|
| Annual Recurring Cost | Walk | Description — The ongoing yearly cost of holding the technology, including licence, subscription, and support charges. Benefit(s) — The figure that makes rationalization actionable. A duplicate technology is an observation until someone can say what removing it saves. Source — Manual or Derived. Notes — Derivable from contract and entitlement records at Run maturity. Record the currency alongside the figure. |
| Acquisition Cost | Walk | Description — The one-time cost of acquiring the technology, where one applies. Benefit(s) — Completes the investment picture and supports amortization and total cost analysis. Source — Manual. Notes — Frequently zero for open source and subscription technologies; record zero rather than leaving empty. |
| Cost Model | Walk | Description — How the technology is charged. Benefit(s) — Determines how cost moves as usage changes, which is essential to forecasting and to understanding the cost of growth. Source — Manual. Examples — Per Core, Per User, Per Instance, Consumption-Based, Flat Fee, No Cost Notes — Consumption-based models make cost a function of behaviour rather than inventory, which changes how it must be monitored. |
| Cost Center | Run | Description — The cost center bearing the technology's cost. Benefit(s) — Connects technology cost to organizational accountability and enables chargeback or showback. Source — Derived. Notes — Derived from finance records rather than maintained here. |
| Total Cost of Ownership | Run | Description — The fuller cost of the technology including support, infrastructure, and operational effort. Benefit(s) — Frequently reverses conclusions drawn from licence cost alone, particularly for technologies that are free to acquire and expensive to run. Source — Calculated. Notes — State the components included; an unexplained figure is not comparable across technologies. |
| Budget Owner | Run | Description — Who holds the budget for this technology. Benefit(s) — Identifies who must agree to a rationalization or migration decision that changes spend. Source — Manual or Derived. Notes — Often distinct from the technology owner; both are needed for a funded decision. |
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