Chargeback ROI: Does accountability pay?

Chargeback for storage use is attracting a lot of interest. But does it make sense financially?

Without a doubt, chargeback for storage use is attracting a lot of interest. But does it make sense financiall...

y?

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 last published in July 2002

Dig Deeper on Data management tools

PRO+

Content

Find more PRO+ content and other member only offers, here.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchSolidStateStorage

SearchConvergedInfrastructure

SearchCloudStorage

SearchDisasterRecovery

SearchDataBackup

Close