What categories are you using at Cost Source Level?
Fixed/Variable come from the General Ledger, however the financial tools cannot know this for certain. Only Apptio/Cost Transparency can help with this, and after substantial analysis. We have built models in and around CT to handle Fixed & Variable.
As a rule of thumb, most running costs are pretty much fixed, while Cloud and D&A are variable, as they depend on the number of servers. This is of course at the global level.
Check this "Bill, the TBM Guy" story that presents the concept, albeit in a slightly novelized way (link).
We're using Fixed/Variable but there is definitely a sense that we need to spend more effort in looking at Run vs. Investment.
We use Fixed / Variable but we are also ramping up our use of Run and Maintain / Invest.
Thanks for sharing! Guillermo Cuadrado (et al) - so your general ledgers have this info or are you assigning fixed/variable based on some cost pools or other meta data? Do you also use the ootb fixed/variable allocation lines for cost source? Or depend on column data? Thanks
Erik Brown Ben Foster
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