IT Expense Management

Clients Rely on the Cass ExpenseSmart Solution to Manage Recurring IT Costs

The growing use of cloud services is changing the way enterprises manage and allocate costs. In IT expense management, costs are shifting from a capital expense (CAPEX) to an operating expense (OPEX) model. Here's why:

New offerings from trusted technology partners such as, Citrix, IBM, Microsoft and others have compelled enterprises to deploy "as a service" delivery more often, resulting in the growth of Software as a Service (SaaS), Analytics as a Service (AaaS), IT as a service (ITaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), as examples.

Saving Taxes, Saving Money

Enterprises typically cite cost savings and performance management among their reasons for moving to this "pay as you consume" model. While a CAPEX model makes it possible to spread the cost of the asset across multiple years, an OPEX model means that the cost is 100% tax-free. (Corporations pay taxes on profits – revenues less expenses.)

Money is also saved when organizations don't have to hire people to operate and manage the routine, round-the-clock system uptime and availability. Performance can be managed when supplier contracts contain service level agreements (SLAs). If performance slips below the agreed threshold, remedies might include credits and/or discounts.

Managing Recurring Costs vs. One-Time Costs

So maybe the move to SaaS delivery means fewer equipment purchases, lower taxes and fewer employees in the data center. But here's the key question: Who has the job to manage these recurring costs? And, is anyone tracking the savings? If SLAs aren't achieved, are the appropriate credits being applied to your account?

Think about it. Before, when you purchased equipment or a software license, you got an invoice for a one-time expense. Now, you're getting invoiced monthly for recurring services. In theory, every month something could go wrong. For example, you could:

  • Over-pay every month due to a recurring invoice error
  • Continue to pay, even after the service was discontinued
  • Miss the payment due date and incur late fees
  • Miss a payment and suffer a service disruption

In other words, these recurring IT expenses are much like your costs for recurring telecom services. To manage these costs successfully, you need the right automated controls.

The Cass ExpenseSmart Solution Controls Your Recurring IT Expenses

Cass clients can manage their recurring IT costs with ease. Cass provides the turnkey solution enterprises need for all types of recurring IT expenses – from software maintenance and SaaS subscriptions to complex cloud services.

Rely on Cass for Accurate Charge Backs

Organizations that want to deploy the "IT as a service" model want to be able to accurately align costs with the business teams that are the consumers of those services. The Cass team will apply your business rules and general ledger codes to create automated processes for cost allocations. Managing more than $50 billion in supplier payments each year, Cass integrates with your ERP/accounting system so that costs are charged back to the appropriate cost center.

Gartner 2017 TEM Market Guide