Challenge - Cost allocation and cost transparency

Allocate every technology cost to the business that used it, and show exactly how you got there.

Bring cloud, software, AI, data platforms, infrastructure, devices and people into one model. Finance gets numbers that reconcile to the ledger, and every business unit can see how its share was built.
Customer Outcomes

How an international bank replaced numerous spreadsheets with one model

180 to 1

Fragmented Excel models consolidated into one automated system, run times cut to minutes, defensible chargebacks posted back into the general ledger.

Major international bank.

Where cost allocation breaks down

Most organizations already allocate technology cost. The trouble starts when someone asks how the number was made.

Three tools, three answers

Your cloud tool, IT cost platform and planning spreadsheet each tell a different story about the same money, and none of them reconcile.

The people are missing

Engineers and support teams are the biggest part of what technology really costs, yet most cost models and FinOps tools leave them out.

“How did you get to my number?”

Without a clear trace, someone spends a week rebuilding the answer, and the business unit still doesn’t accept it.

If you can’t trace a number back to its source, nobody outside IT will trust it.

Who needs the answer, and what they need from it

Head of TBM Office or CFO of IT

Builds the model and answers for it. Needs the lineage, an audit trail and a model they can change themselves without calling in a consultant.

CFO and finance

Signs the recharge. Needs it to reconcile to the general ledger and hold up in an audit.

CIO and IT leadership

Answers for the total. Needs to know what each technical capability, service, application and business unit really costs.

The business unit being charged

Challenges the number. Needs to understand and trust the result rather than be told the answer.

All are asking for the same thing: a sound figure they can walk back to its origin.

How MagicOrange allocates and explains technology cost

The below capabilities work together here, along with Data Studio, Analytics and AI Studio included.

Enterprise Allocation Modeling

The market leading engine. Allocate any cost, on your framework or ours, with unlimited layers and All-Back tracing in both directions.

IT Financial Management

Ready-made for technology, with the TBM taxonomy, towers and the Bill of IT built in.

FinOps

Cloud in the same model, FOCUS-native and refreshed daily.

Time Capture and Resource Planning

Your people in the same model. They’re the biggest technology cost, and the one most leave out.

Transparency like no other

See a cost impact up and down the whole value chain in one view. When a business unit challenges a recharge, show them the trace, with no rebuild needed.

Every category, one set of definitions

All spend categories live in one model, so finance, IT and the business unit see all components in the view made for each of them.

Beyond IT

The same engine allocates shared services such as HR, finance, logistics and property, and evolve to full product and customer costing.

Numbers customers have verified

Built on industry standards

The TBM taxonomy supplies the towers and services definitions. The FinOps Framework and FOCUS shape how cloud cost comes in. MOTEF, the MagicOrange Technology Economics Framework, structures and converges all spend for normalization and insights.

Show complete transparency of every technology dollar for every stakeholder.

Transparency like no other, gain complete visibility into every allocation, TCO, driver, unit rate and relationship.