This article can also be found in the Premium Editorial Download "Storage magazine: Overview of top tape backup options for midrange systems and networking segments."
Download it now to read this article plus other related content.
Chargeback can save enterprises money, says IT ROI expert Tom Pisello, CEO and founder of Orlando, FL-based consulting firm Alinean, but only if it slows storage growth dramatically.
Pisello looked at what storage growth costs companies today. For example, a company with 1TB of storage today will increase that figure by 76% this year, or about 760GB, he projects. With a TCO of about $0.20 to $0.30/MB per year, 760GB of extra storage will cost about $200,000.
Then, Pisello looked at how much a chargeback program costs to establish: 25% of a storage professional's time ($25,000, assuming $100,000 annual salary and overhead), and 100% of an administrator's time - or about $75,000.
The bottom line? If the chargeback program manages to hold the line on storage use, a company could get back $1.66 for every $1 spent on accountability, Pisello says.
But if chargeback only slows growth by a realistic 40% to 60%, it's a toss-up whether chargeback is worth the hassle. "If you still get 40% of the growth in usage," he says, "the case is marginal."
- Anne Zieger
This was first published in July 2002