Mastering Dynamic Allocation in the New World of IT Finance

Michael Vizard

In IT financial management, things are not only getting more complicated, they are getting more contentious.

Nothing makes that more apparent than virtual machine software where the underlying IT infrastructure is shared by multiple applications, each of which may have a different sponsor within the company. Obviously, each sponsor only wants to pay for the portion of the physical server they are actually using, which creates challenges for the IT department in allocating costs.

According to Digital Fuel CEO Yisrael Dancziger, we're entering a new era of dynamic allocation brought on by the rise of virtualization and cloud computing. Digital Fuel makes IT financial application management software that is available as a service. The latest edition of the company's software added support for virtualization by including support for VMware APIs that lets Digital Fuel dynamically track which application installed on top of an instance of a VMware virtual machine is active at any given time.

This virtual machine tracking capability is a complement to the company's ability to allocate usage of cloud computing resources .

Dancziger says the things that differentiate Digital Fuel from rival offerings from companies such as Hewlett-Packard and Apptio are that the Digital Fuel environment includes a raft of models and templates that IT organizations can readily use to create an "out-of-the-box" experience that allows them to get started using Digital Fuel not only faster, but in a more meaningful way.

In addition, Digital Fuel includes service level management tools to help IT organizations define and manage a service. And finally, the application helps IT organizations do what-if scenario modeling to determine the potential financial impact of any given theoretical IT scenario.

IT organizations are dealing with savvier internal and external customers that want every nickel of spending on IT accounted for. The challenge, says Dancziger, is that as IT infrastructure becomes more dynamic, IT organizations need an approach to financial management that is dynamic enough to stand up to the new realities of IT financial management.

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