For those of you that are doing storage chargeback, approximately how much are you charging per MB or GB? I'm sure that it depends on the type of disk (FC or SATA) so if you don't mind sharing numbers I'd appreciate it.
Luther
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Luther Allin IT Manager Miller & Martin PLLC
Suite 1000 Volunteer Bldg. 832 Georgia Avenue Chattanooga, TN 37402 Phone (423) 785-8381 Fax (423) 321-1678
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Hello Luther,
We developed a chargeback model at NASA's JPL.
Basically, take the full costs of managing your system and assume 10GByte customers, and divide the costs for that customer base to get a rough starting point.
Then to account for the high usage customers, we created a function that would reduce their per GB costs as they started to consume 100's of GBs. Assume that the customer needing 100's of GBs is not going to need customer support as much as qty 10x 10GBs customers.
In the end we created a function that fit a few data points. Think of the real costs to take care of a small customer 1-10G, a medium sized customer 50-100G and a large sized customer ~500GB-1TB, and fit your cost model to that.
It may look like a complex cost model, but you don't want a linear cost model. A linear cost model will make the big consumers think about just buying their own equipment. The real key to the function is to add up your expected customers and their usage for the next year, pump them through your cost model (Excel) and make sure the numbers add up so that you won't have cost overruns. We would update our model every year.
You want to sell to the small customers based on ease of use and better backups for them.
You want to sell to the large customers based on the above but also their need to keep from having to grow their own capital expenditures.
It took a little while to fit the function, and both the large and small customers were happy with that chargeback model.
If you need an assist with the function details...ping me...I will try to find our equation and Excel spreadsheet in my archives.
Best,
Joe Bishop
----- Original Message ----- From: "Luther Allin" lallin@millermartin.com To: toasters@mathworks.com Sent: Tuesday, March 2, 2010 5:59:30 AM Subject: Storage Chargeback Costs
For those of you that are doing storage chargeback, approximately how much are you charging per MB or GB? I’m sure that it depends on the type of disk (FC or SATA) so if you don’t mind sharing numbers I’d appreciate it.
Luther
Luther Allin IT Manager Miller & Martin PLLC
Suite 1000 Volunteer Bldg. 832 Georgia Avenue Chattanooga, TN 37402 Phone (423) 785-8381 Fax (423) 321-1678
CONFIDENTIALITY NOTICE The information contained in this e-mail message is legally privileged and confidential, and is intended only for the use of the addressee. If you are not the intended recipient, please be aware that any dissemination, distribution or copy of this e-mail is prohibited. If you have received this e-mail in error, please immediately notify us by reply e-mail and delete this message and any attachments. Thank you.
Please also advise us immediately if you or your employer does not consent to receipt of Internet e-mail for confidential messages of this kind.
DISCLAIMER Pursuant to Circular 230 issued by the United States Treasury Department and relating to practice before the Internal Revenue Service, any comment or opinion in this communication relating to a federal tax issue is not intended to be used, and cannot be used, by a taxpayer for the purpose of avoiding tax-related penalties that may be imposed on the taxpayer.
Hi Joe, Luther and all toasters,
I posted Luther's original question on NetApp communities (http://communities.netapp.com/message/24547#24547). Looking forward to a great discussion!
Kingman
-----Original Message----- From: Joseph Bishop [mailto:jbishop@west.net] Sent: Tuesday, March 02, 2010 6:59 AM To: Luther Allin Cc: toasters@mathworks.com Subject: Re: Storage Chargeback Costs
Hello Luther,
We developed a chargeback model at NASA's JPL.
Basically, take the full costs of managing your system and assume 10GByte customers, and divide the costs for that customer base to get a rough starting point.
Then to account for the high usage customers, we created a function that would reduce their per GB costs as they started to consume 100's of GBs. Assume that the customer needing 100's of GBs is not going to need customer support as much as qty 10x 10GBs customers.
In the end we created a function that fit a few data points. Think of the real costs to take care of a small customer 1-10G, a medium sized customer 50-100G and a large sized customer ~500GB-1TB, and fit your cost model to that.
It may look like a complex cost model, but you don't want a linear cost model. A linear cost model will make the big consumers think about just buying their own equipment. The real key to the function is to add up your expected customers and their usage for the next year, pump them through your cost model (Excel) and make sure the numbers add up so that you won't have cost overruns. We would update our model every year.
You want to sell to the small customers based on ease of use and better backups for them.
You want to sell to the large customers based on the above but also their need to keep from having to grow their own capital expenditures.
It took a little while to fit the function, and both the large and small customers were happy with that chargeback model.
If you need an assist with the function details...ping me...I will try to find our equation and Excel spreadsheet in my archives.
Best,
Joe Bishop
----- Original Message ----- From: "Luther Allin" lallin@millermartin.com To: toasters@mathworks.com Sent: Tuesday, March 2, 2010 5:59:30 AM Subject: Storage Chargeback Costs
For those of you that are doing storage chargeback, approximately how much are you charging per MB or GB? I’m sure that it depends on the type of disk (FC or SATA) so if you don’t mind sharing numbers I’d appreciate it.
Luther
Luther Allin IT Manager Miller & Martin PLLC
Suite 1000 Volunteer Bldg. 832 Georgia Avenue Chattanooga, TN 37402 Phone (423) 785-8381 Fax (423) 321-1678
CONFIDENTIALITY NOTICE The information contained in this e-mail message is legally privileged and confidential, and is intended only for the use of the addressee. If you are not the intended recipient, please be aware that any dissemination, distribution or copy of this e-mail is prohibited. If you have received this e-mail in error, please immediately notify us by reply e-mail and delete this message and any attachments. Thank you.
Please also advise us immediately if you or your employer does not consent to receipt of Internet e-mail for confidential messages of this kind.
DISCLAIMER Pursuant to Circular 230 issued by the United States Treasury Department and relating to practice before the Internal Revenue Service, any comment or opinion in this communication relating to a federal tax issue is not intended to be used, and cannot be used, by a taxpayer for the purpose of avoiding tax-related penalties that may be imposed on the taxpayer.
Hey Kingman,
Oh sure...no pressure. :)
Best,
Joe
----- Original Message ----- From: "Kingman Tang" Kingman.Tang@netapp.com To: "Joseph Bishop" jbishop@west.net, "Luther Allin" lallin@millermartin.com Cc: toasters@mathworks.com Sent: Tuesday, March 2, 2010 9:33:55 AM Subject: RE: Storage Chargeback Costs
Hi Joe, Luther and all toasters,
I posted Luther's original question on NetApp communities (http://communities.netapp.com/message/24547#24547). Looking forward to a great discussion!
Kingman
-----Original Message----- From: Joseph Bishop [mailto:jbishop@west.net] Sent: Tuesday, March 02, 2010 6:59 AM To: Luther Allin Cc: toasters@mathworks.com Subject: Re: Storage Chargeback Costs
Hello Luther,
We developed a chargeback model at NASA's JPL.
Basically, take the full costs of managing your system and assume 10GByte customers, and divide the costs for that customer base to get a rough starting point.
Then to account for the high usage customers, we created a function that would reduce their per GB costs as they started to consume 100's of GBs. Assume that the customer needing 100's of GBs is not going to need customer support as much as qty 10x 10GBs customers.
In the end we created a function that fit a few data points. Think of the real costs to take care of a small customer 1-10G, a medium sized customer 50-100G and a large sized customer ~500GB-1TB, and fit your cost model to that.
It may look like a complex cost model, but you don't want a linear cost model. A linear cost model will make the big consumers think about just buying their own equipment. The real key to the function is to add up your expected customers and their usage for the next year, pump them through your cost model (Excel) and make sure the numbers add up so that you won't have cost overruns. We would update our model every year.
You want to sell to the small customers based on ease of use and better backups for them.
You want to sell to the large customers based on the above but also their need to keep from having to grow their own capital expenditures.
It took a little while to fit the function, and both the large and small customers were happy with that chargeback model.
If you need an assist with the function details...ping me...I will try to find our equation and Excel spreadsheet in my archives.
Best,
Joe Bishop
----- Original Message ----- From: "Luther Allin" lallin@millermartin.com To: toasters@mathworks.com Sent: Tuesday, March 2, 2010 5:59:30 AM Subject: Storage Chargeback Costs
For those of you that are doing storage chargeback, approximately how much are you charging per MB or GB? I’m sure that it depends on the type of disk (FC or SATA) so if you don’t mind sharing numbers I’d appreciate it.
Luther
Luther Allin IT Manager Miller & Martin PLLC
Suite 1000 Volunteer Bldg. 832 Georgia Avenue Chattanooga, TN 37402 Phone (423) 785-8381 Fax (423) 321-1678
CONFIDENTIALITY NOTICE The information contained in this e-mail message is legally privileged and confidential, and is intended only for the use of the addressee. If you are not the intended recipient, please be aware that any dissemination, distribution or copy of this e-mail is prohibited. If you have received this e-mail in error, please immediately notify us by reply e-mail and delete this message and any attachments. Thank you.
Please also advise us immediately if you or your employer does not consent to receipt of Internet e-mail for confidential messages of this kind.
DISCLAIMER Pursuant to Circular 230 issued by the United States Treasury Department and relating to practice before the Internal Revenue Service, any comment or opinion in this communication relating to a federal tax issue is not intended to be used, and cannot be used, by a taxpayer for the purpose of avoiding tax-related penalties that may be imposed on the taxpayer.