Customers - How we compete

Each tool on your shortlist sees part of the spend, and MagicOrange holds all of it.

This page sets out where MagicOrange leads, where it does what any good tool should and where it stops today, so you can test each claim in a demo.Where we lead >Category standard >Where we stop >

The market

Technology cost tools come from different starting points, and each one stops at a different line

Most enterprises compare tools from three markets. Each was built for a different owner and a different set of data, which explains where it stops.

Planning platforms

Built for the finance plan across the whole business.

They see technology as lines in a budget. Allocation is light, so the plan seldom reaches the service, the application or the team that used the money.

IT financial management tools

Built for the estate IT owns, costed from the ledger on the TBM taxonomy.

They stop at the edge of IT. Cloud is arriving in some of them as a later addition.

Cloud cost tools

Built for metered cloud spend, read from the provider’s bill.

Mostly cloud. The people who build and run technology are left out, and allocation to the business stays shallow.

MagicOrange

Built for every technology cost: consumed, owned and human.

One model across all three, with AI and labor in it from the start, reconciled to the accounts finance already uses.

Some vendors now own a tool in more than one of these markets. Owning both halves is not the same as joining them. Two products with two sets of rules still need a reconciliation job between them, and that job usually falls to the customer.

Where we lead

Where MagicOrange leads the category, with the evidence behind each claim

A MagicOrange team member on a headset, smiling during a customer call

One model for every technology cost

Cloud, AI, software, data platforms, infrastructure, devices and the people who run them sit on one set of definitions, so finance, IT and the business read the same number.

Forrester wrote that “MagicOrange’s enterprise financial management concept anticipates the necessity for ITFM platforms to bring in costs outside of technology to effectively govern the full costs and benefits of AI transformation.”

See the platform

Every figure traces back to its record

Pick any number and follow it down through every allocation that made it, to the ledger line, the invoice or the metered event underneath. All-Back shows the whole path in one view.

Forrester gave MagicOrange the highest score in the evaluation for cost transparency model building and found it has “the cleanest cost transparency model-building interface in this evaluation.”

Follow the trace

Allocation beyond IT

The same engine allocates shared services outside IT, so HR, logistics and property can be costed on the model that costs the technology.

A global retail group runs one shared services model across 34 brands, spanning IT, HR and logistics. The Foschini Group measures total cost of ownership across IT, logistics and property.

See Enterprise Allocation Modeling

The people are counted

Labor is the largest line in real technology cost, and cloud cost tools leave it out. MagicOrange captures it from the plan to the timesheet to the allocated cost, in the same terms as the cloud bill.

See Time Capture and Resource Planning

Allocations finance and tax teams can use

The model produces what finance needs from it: VAT recovery, IFRS 17 reporting, transfer pricing and chargebacks posted back into the general ledger.

A major European bank improved VAT recovery by EUR 1.5m. A global financial services organization cut processing and reconciliation time by over 40% while establishing IFRS 17 compliant reporting.

See IFRS 17, VAT and transfer pricing

The data work is in the price

Data Studio, Analytics and AI Studio come with every capability, so you do not buy a separate integration layer or a separate reporting license to make the model work.

Forrester gave MagicOrange its top score for pricing flexibility and transparency.

See what is included
Read the Forrester Wave reprint

Disclaimer: Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity at forrester.com/about-us/objectivity.

Category standard

What MagicOrange does as well as any good tool in the category

Some things every serious tool on your shortlist should do. MagicOrange does them well, and we would rather say so plainly than dress them up as something rare.

  • Showback and chargeback, from the first allocation to the bill a business unit receives.
  • Cloud cost reporting, anomaly detection and tagging enforcement, on a platform the FinOps Foundation has certified.
  • Budgets, forecasts and what-if scenarios on live actuals.
  • Dashboards and reports in embedded Power BI.
  • Connections to the systems a technology cost model draws on, from the ledger to the cloud bill.
  • The security certifications an enterprise buyer expects, all published.

Where we stop

What MagicOrange does not do today, so you hear it from us first

A shortlist is easier to trust when each vendor says where it stops. These are the places we do.

Field mapping is done by hand

Mapping your source fields to the standard objects is done by hand today, and there is no visual lineage graph yet. The audit log gives an auditor the trace they ask for, but not yet the picture a governance team would like to see.

See Data Studio

No published AI cost result yet

No customer has a multi-year AI cost result to publish yet, because the practice is so new. Our published results prove allocation and reconciliation at enterprise scale, and AI now sits on that same model.

See the published results

Benchmarking stays with the TBM Council

MagicOrange works to the TBM taxonomy, but the Council’s benchmarking programs are the Council’s own, and we leave them there.

See how we use TBM

Common questions

The questions buyers ask us when they are comparing technology cost tools

We already have visibility of our technology spend.

Good, because that is where the work starts. The next question a board asks is what the spend returned. MagicOrange traces each cost to the service and the business unit it paid for, so the return can be booked against the same accounts as the cost.

Our data platform already reports our AI token costs.

Keep it. Usage data from a data platform or an AI gateway is a good input, and MagicOrange reads it. What MagicOrange adds is the rest: the same tokens priced against the service and the team that used them, on the model that holds the rest of your technology spend.

Could we build this ourselves?

You could build the screens. The harder part is the model underneath: what an application is, who consumes it, how a shared cost is split so that every dollar is accounted for. The enterprises that have spoken publicly about building their own took years to reach numbers the business trusted. MagicOrange arrives with that model already defined.

Test each claim on this page against your own numbers in a demo

Bring a number you answer for. We will show you the trace.

Book a demoRead the Forrester report