Gartner Recognizes Magic Orange as an Established ITFM Offering 

Gartner predicts that by 2024, 70% of CIOs will have a dedicated ITFM system or tool to help clarify and analyze total IT spend.**

Gartner recommends an early adoption of purpose-built tool designed to support growing cost model demands, allocation flexibility and data complexity. Magic Orange is that tool.

Gartner Quadrant

In their recent “Build a Focused ITFM Cost Model and Use a Simple Allocation Approach to Deliver Rapid Value” Gartner focuses on how CIOs can accelerate the success of IT finance cost transparency initiatives by narrowing their focus to a single audience and stakeholders’ most pressing question on spend, value, demand and compliance. Followed by defining a cost model and an allocation method to deliver immediate answers.

For success of an ITFM initiative Gartner outlined the following steps:

1. Build an appropriate cost model and select allocation logic to support the desired outcome

CIOs must first determine the most critical objective and identify all possible ITFM program stakeholders and their challenges.

IT Finance Cost Model by Objective and Stakeholder:

Cost Model

2. Confirm and Document the ITFM Program Priority Objective

It is likely that an ITFM program will have multiple objectives or goals. To ensure clarity of vision and successful execution, target a stakeholder and a specific outcome or deliverable at each stage of the ITFM solution delivery and cost model evolution.

3. Leverage Existing Systems, Including the General Ledger When Possible

To deliver optimal value from your existing transactional finance systems, work with the finance department to ensure that, at a minimum, you are delivering the base layer of financial information required for your model.

4. Deliver Rapid Insight — Simplify Allocations to a Fit-for-Purpose Cost Model

The cost model and the cost allocation approach to delivering IT spend transparency should be tuned to achieve the specific stakeholder’s objective. Start simple, and deliver outcomes and insights to stakeholders quickly.

Cost Model

5. Choose the right ITFM tool for your needs

Over time, cost models that have been built quickly will need to be adjusted. Models will need to be expanded, complexities addressed and/or allocation methods changed dynamically. These adjustments are needed in order to resolve stakeholder concerns about the accuracy. Purpose-built ITFM tools are commonly designed to make these changes easier to support, model and maintain.


*Gartner Information Technology Research, “Build a Focused ITFM Cost Model and Use a Simple Allocation Approach to Deliver Rapid Value”, Robert Naegle, Chris Ganly, 7 February 2020
** Strategic Planning Assumption, Gartner, February 2020