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Apptio Terminology > TBM Taxonomy v3 - Cost Pools (Pool 1/3) > Flashcards

TBM Taxonomy v3 - Cost Pools (Pool 1/3) Flashcards

Technology Business Management (TBM) provides a standard taxonomy to describe cost sources, technologies, IT resources (IT Towers), applications, and services. The TBM Taxonomy provides the ability to compare technologies, towers, and services to peers, and third-party options. There are 3 hierarchical layers starting at the bottom with Cost Pools, flowing up to IT Towers and finally reaching Products & Services.

1
Q

What is ‘Internal Labor’?

A

Internal Labor includes the full range of personnel costs and activities required for delivering or supporting the IT services - including direct operational activities, support and management and administration activities.

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2
Q

What is ‘Internal Labor - Expense’?

A

Employee wages, benefits, expenses & occupancy.

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3
Q

What is ‘Internal Labor - Capital’?

A

Capitalized Labor (internal employees)

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4
Q

What is ‘External Labor’?

A

External Labor includes the costs of external personnel required for delivering or supporting the IT services – including direct operational activities, support, management and administration activities.

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5
Q

What is ‘External Labor - Expense’?

A

External contractor fees, travel & expenses.

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6
Q

What is ‘External Labor - Capital’?

A

Capitalized Labor (external contractors)

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7
Q

What are ‘Outside Services’?

A

Outside Services include IT services purchased from external service providers including consulting services, managed services and public cloud services. Specific examples of outside services include managed network services, cloud storage for end user backup, and externally provided email services.

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8
Q

What are ‘Outside Services - Consulting’?

A

External consulting project-based services

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9
Q

What are ‘Outside Services - Managed Service Providers’?

A

External managed service providers

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10
Q

What are ‘Outside Services - Cloud Service Providers’?

A

External public cloud service providers including IaaS, PaaS and SaaS.

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11
Q

What are ‘Outside Services - Capital’?

A

Capitalized services.

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12
Q

What is ‘Hardware’?

A

Hardware includes all physical technology assets excluding property, office space or raised floor facilities. The range of assets varies by IT Resource Tower; examples include servers, PCs, storage arrays, network appliances, printers and so on. Where a device contains embedded software (firmware), for example in a network firewall, the cost should be reported as hardware even if the software can be upgraded for a separate fee..

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13
Q

What is ‘Hardware - Expense’?

A

Hardware expense of non-capitalized purchases (e.g., spare parts, consumables or equipment below capitalization threshold).

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14
Q

What is ‘Hardware - Lease’?

A

Hardware lease expenditures (e.g., hardware purchased through a supplier or financial services leasing arrangement).

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15
Q

What is ‘Hardware - Maintenance & Support’?

A

Hardware maintenance and support expenditures.

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16
Q

What is ‘Hardware - Depreciation & Amortization’?

A

Hardware depreciation of capitalized purchases.

17
Q

What is ‘Hardware - Capital’?

A

Capital

18
Q

What is ‘Software’?

A

Software includes the licensing, maintenance and support costs for all software including operating system, middleware, databases, system management and administration tools, desktop applications and utilities and business applications. Software costs include enterprise or per instance licenses, client-access licenses, maintenance/update costs, customization fees.

19
Q

What is ‘Software - Expense’?

A

Software expense of non-capitalized software purchases.

20
Q

What is ‘Software - Licensing’?

A

Software license, support and maintenance expenditures for the use of non-SaaS provided software. SaaS subscriptions belong under Outside Services > Cloud Service Providers.

21
Q

What is ‘Software - Maintenance & Support’?

A

Software maintenance and support expenditures.

22
Q

What is ‘Software - Depreciation & Amortization’?

A

Software depreciation of capitalized software license purchases & software development efforts.

23
Q

What is ‘Software - Capital’?

A

Capitalized software expenditures.

24
Q

What is ‘Facilities & Power’?

A

Facilities & Power costs include the floor space as well as the power, cooling, and other utilities costs, environmental control (fire suppression), power distribution, rack infrastructure, outside services and personnel costs related to managing the data center environment.

25
Q

What is ‘Facilities & Power - Expense’?

A

Data center space, power, security and other operating expenses (e.g., co-location facility services, electricity, water, etc.).

26
Q

What is ‘Facilities & Power - Lease’?

A

Data center lease expenditures.

27
Q

What is ‘Facilities & Power - Maintenance & Support’?

A

Data center maintenance & support expenditures.

28
Q

What is ‘Facilities & Power - Depreciation & Amortization’?

A

Data center depreciation of facility build and lease hold improvements (e.g., raised floor investments, power/PDU infrastructure, rack build-out).

29
Q

What is ‘Facilities & Power - Capital’?

A

Capitalized leasehold improvements.

30
Q

What is ‘Telecom’?

A

Telecom is for all telecommunications charges, including leased line, domestic and international voice (including mobile), MPLS, ISP and other charges. Telecom costs include the circuits and any associated usage fees for providing voice and/or data telecommunication services between data centers, office locations, the internet and any customer, supplier or partner. This is typically transmission across the wide area network (WAN).

31
Q

What is ‘Telecom - Expense’?

A

Voice and data network connectivity expenses including circuit and usage expenditures.

32
Q

What is ‘Telecom - Lease’?

A

Telecom lease expenditures.

33
Q

What is ‘Telecom - Maintenance & Support’?

A

Telecom maintenance & support expenditures.

34
Q

What is ‘Telecom - Depreciation & Amortization’?

A

Depreciation/amortization of any capitalized telecom expenditures; typically, this will show up under Hardware or Facilities depreciation/amortization.

35
Q

What is ‘Telecom - Capital’?

A

Capitalized telecom expenditures.

36
Q

What is ‘Other’?

A

Miscellaneous or non-standard expenses.

37
Q

What are ‘Internal Services - Shared Services’?

A

Miscellaneous charges received from other internal shared services groups (e.g., HR service fees from the HR department). Real estate management fees for space and power should be included in the Facilities and Power cost pool.

Apptio Terminology (5 decks)

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