Cost Pools and Sub Cost Pools represent the Finance view of IT costs. Cost pools are categories that describe the types of assets and services purchased. By using Cost Pools we allow easier cost allocations & enhance reporting.
OPEX
Internal Labour
Internal employee wages, benefits & expenses
Expense
Internal employee wages, benefits & expenses
Eg. IaaS, PaaS, and SaaS
External Labour
External contractor fees plus their travel and expenses
Expense
External contractor fees plus their travel and expenses
Outside Services
IT services from external service providers
Consulting
External consulting project-based services
Managed Service Provider
External managed service providers
Cloud Service Provider
External public cloud service providers
Eg. IaaS, PaaS, and SaaS
Hardware
Physical technology assets
Expense
Non-capitalized hardware purchases
e.g. Spare parts, consumables, equipment below capitalization threshold
Lease
Hardware lease expenditure
e.g. Hardware purchased through a supplier or financial services leasing arrangement
Maintenance & Support
Hardware maintenance and support
Depreciation & Amortization
Depreciation of capitalized hardware purchases
Software
Enables hardware to perform tasks.
Expense
Non-capitalized software purchases.
e.g. Operating system, databases, system management and administration tools, and business applications
Licensing
Licenses for the use of non-SaaS provided software
Maintenance & Support
Software maintenance and support
Depreciation & Amortization
Depreciation of capitalized software license purchases & software development efforts
Facilities & Power
Management of the data center environment
Expense
Data center space, power, security, and other operating expenses
e.g. co-location facility services, electricity, water
Lease
Data center lease
Maintenance & Support
Data center maintenance & support
Depreciation & Amortisation
Data center depreciation of facility build and leasehold improvements
e.g. Power/PDU infrastructure, and rack build-out
Telecom
Telecommunications charges, including mobile & voice
Expense
Voice and data network connectivity expenses
Lease
Telecom lease
Maintenance & Support
Telecom maintenance & support
Depreciation & Amortisation
Depreciation/amortization of any capitalized telecom expenditures
Other
Misc expenses
Other
Misc or non-standard expenses
Internal Services
Charges from other areas within the business
Shared Services
Misc charges received from other internal shared services groups
e.g. HR service fees from the HR department
CAPEX
Internal Labour
Capital
Capitalized labour (internal employees)
External Labour
Capital
Capitalized labour (external contractors)
Outside Services
Capital
Capitalised
Hardware
Capital
Hardware purchases above the capitalization threshold
Software
Capital
Perpetual software license purchases above the capitalization threshold
Facilities & Power
Capital
Purchased land and facilities and capitalized improvements
