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Sunday, 25 January 2015

vRealize Business Taxonomy & Definitions

Before we dig into the solution itself, it is important to understand the key components that will be referenced in this vRealize Business
  • Cost Model - a visual diagram that demonstrates and cost structure and flow of dollars through an organization.
  • Cost Object - an element of a Cost Model that depicts a single cost item. Examples include server type, storage type, or a specific data center.
  • Cost Group - an element of a Cost Model that is made up of multiple cost objects.  A cost group called 'Physical Servers' would contain several server cost objects like 'Linux', 'Windows', or 'Unix', for example.
  • Cost Driver - in a Cost Model, these are the costs that a cost object inherits from other cost objects. For example, the cost drivers for Servers may be Data Center, Hardware, Software, and Labor.
  • Allocation - in a cost model, this is the spread of costs from one cost object to another. An example would be that costs from Servers are allocated to Applications.
  • Allocation Method - in a cost model, the manner in which costs are pushed to another cost object. This could be based on a predetermined percentage, price, or, most accurately, by actual consumption.