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810-440 · Question #129

Which three additional costs may arise from a subscription model and should be factored into the total cost of ownership of IT as a Service? (Choose three.)

The correct answer is A. Cost of accounting and tracking B. Software asset and management D. Auditing and control. When adopting an IT as a Service subscription model, organizations must account for additional operational costs beyond the subscription fee, such as the expenses for accounting, software asset management, and auditing. These recurring activities are critical for governance and…

Executing the Business Architecture Approach

Question

Which three additional costs may arise from a subscription model and should be factored into the total cost of ownership of IT as a Service? (Choose three.)

Options

  • ACost of accounting and tracking
  • BSoftware asset and management
  • CCost of Hardware and Software
  • DAuditing and control
  • EChargeback and Show back
  • FIt varies, depending on the technology solution or service

How the community answered

(22 responses)
  • A
    82% (18)
  • C
    5% (1)
  • E
    9% (2)
  • F
    5% (1)

Why each option

When adopting an IT as a Service subscription model, organizations must account for additional operational costs beyond the subscription fee, such as the expenses for accounting, software asset management, and auditing. These recurring activities are critical for governance and cost control.

ACost of accounting and trackingCorrect

Managing numerous recurring subscription payments, often with complex usage-based billing, significantly increases the administrative overhead and cost associated with accounting and financial tracking.

BSoftware asset and managementCorrect

Even with subscription-based software, organizations incur costs for managing software assets, ensuring compliance with licensing terms, and tracking utilization to optimize expenditures.

CCost of Hardware and Software

The direct cost of hardware and software is typically subsumed within the subscription fee for IT as a Service, rather than being an 'additional cost' on top of it.

DAuditing and controlCorrect

Continuous auditing and control are necessary to ensure compliance, security, and cost optimization in a dynamic IT as a Service environment, adding to the operational costs.

EChargeback and Show back

Chargeback and Showback are internal financial mechanisms for cost allocation, not an 'additional cost' arising from the subscription model itself.

FIt varies, depending on the technology solution or service

This is a general statement about variability and not a specific additional cost that must be factored into the total cost of ownership.

Concept tested: TCO of ITaaS subscription models

Topics

#subscription model#TCO#ITaaS#financial analysis

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