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810-440 · Question #213

Which three options are additional costs arising from a subscription model and should be factored into the total cost of ownership of IT as a Service?

The correct answer is A. auditing and control C. software asset and managed D. cost of accounting and tracking. When moving to a subscription model for IT as a Service, additional costs to factor into TCO include ongoing auditing and control, software asset and license management, and the overhead of accounting and tracking usage.

Executing the Business Architecture Approach

Question

Which three options are additional costs arising from a subscription model and should be factored into the total cost of ownership of IT as a Service?

Options

  • Aauditing and control
  • Bcost of hardware and software
  • Csoftware asset and managed
  • Dcost of accounting and tracking
  • Equality assurance management
  • Fchargeback and show back

How the community answered

(52 responses)
  • A
    85% (44)
  • B
    4% (2)
  • E
    10% (5)
  • F
    2% (1)

Why each option

When moving to a subscription model for IT as a Service, additional costs to factor into TCO include ongoing auditing and control, software asset and license management, and the overhead of accounting and tracking usage.

Aauditing and controlCorrect

In a subscription model, especially for cloud services, auditing and control become crucial for compliance, security, and usage monitoring, often requiring dedicated resources or tools, adding to the TCO.

Bcost of hardware and software

The cost of hardware and software is generally shifted from capital expenditure to operational expenditure within a subscription model, often bundled into the subscription fee itself, rather than being an additional cost on top of the subscription.

Csoftware asset and managedCorrect

Even with subscriptions, effective software asset management, including license tracking and optimization across various services and users, remains a critical and potentially costly activity to avoid over-provisioning or compliance issues.

Dcost of accounting and trackingCorrect

The dynamic nature of subscription services necessitates robust accounting and tracking mechanisms to accurately allocate costs, monitor consumption, and ensure budget adherence, which incurs administrative overhead.

Equality assurance management

Quality assurance management is a standard part of IT service delivery regardless of the consumption model; it's not a cost arising specifically from a subscription model, though its focus might shift.

Fchargeback and show back

Chargeback and showback are methods for allocating and communicating IT costs within an organization; while important in managing subscription costs, they are mechanisms for cost allocation rather than inherent additional costs of the subscription itself.

Concept tested: TCO of subscription-based IT as a Service

Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/tco-and-roi

Topics

#subscription model costs#TCO#ITaaS#financial planning

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