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    Service-Based Costing - A Smarter Path to ITFM

    SP
    Siva Pullabhotla
    Founder & CEO
    July 28, 2025
    8 min read
    Service-Based Costing - A Smarter Path to ITFM

    For years, business leaders have seen IT as a “black box.” Traditional allocation engines promised fairness, but in reality, they're complex, hard to maintain, and often lead to more confusion than clarity.

    At Altios, we take a simpler, more transparent approach: service-based costing.

    What It Means

    Every IT dollar is tied directly to a Service Group and Service Name — not buried in formulas.

    • InfoSec → Identity & Access Management
    • Infrastructure → Data Center Hosting, Cloud, Network
    • Digital Employee Experience → Collaboration, End-User Services

    This model makes costs easy to understand and immediately actionable.

    Aligned with TBM

    To ensure consistency and comparability, Altios maps these services into the Technology Business Management (TBM) taxonomy:

    • End User Services - collaboration, support, devices
    • Applications - business apps, ERP, CRM
    • Infrastructure - compute, storage, cloud, network
    • Security & Risk - IAM, compliance, cyber ops
    • IT Management - architecture, innovation, program/project management

    Why It Works Better

    • Transparent: No hidden allocation rules
    • Business-Aligned: Spend is explained in terms of services delivered.
    • Benchmark-Ready: TBM alignment allows cost comparisons across peers.
    • Actionable: Leaders can make informed choices — “Do we need this service at this scale?”

    The Altios Advantage

    Unlike other ITFM tools, Altios doesn't require a heavy allocation engine. Instead, we offer service-level visibility pre-aligned to TBM, giving CIOs and CFOs faster insight, easier benchmarking, and clearer business conversations.

    With Altios, IT spend tells a story everyone can understand — the story of services delivered to the business.

    Tags

    ITFM
    Cost Optimization
    Digital Transformation
    ROI

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