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Business Unit Cost Splitting

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Business Unit Cost Splitting


    For large enterprises with multiple software suppliers, software usage cost allocation is necessary. The supplier's product familities may have dozens of licensed features, ranging in value from $100s to $100,000s per seat. Having global operations, multiple business units, and each using varying numbers of features from different numbers of vendors, determining a fair division of software costs can be daunting. Typically enterprises have resorted to simple head count techniques to divide costs.

    Software usage analysis provides the means to split costs fairly by considering the number of hours of software users, number of actual users of software or maximum number of concurrent users as well as the value of the software consumed.

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