Internal Costs Per Gigabyte — What Do You Pay?

CodePwned writes "I recently took over a position at a rather large company where I discovered my group was paying $30 per gigabyte per month! That's $360 per year per gigabyte to our own IT department. While I understand costs are different depending on the scale, redundancy, backup and support methods, there doesn't seem to be any good papers on what range you should expect your costs to be. So far, my research shows an average of $1 per gigabyte or less for internally hosted space. What do you pay?"

Comments

Re:Eh?

[Surt]

He's at a large company, where one department (IT) actually charges other departments (sales, development) for services. He wants to know what he should expect to be charged by IT per GB of storage. He thinks the IT department at his company is overpricing to provide for Aeron chairs.

why this happens

[Nadaka]

The big reason for internal IT departments to charge other departments for services rendered is this:

When it comes time for a manager to "earn" his bonus, the first thing he looks at is cutting the budget for less profitable departments.

The IT department rarely has external clients for income, but is absolutely vital to keeping the business running.

Therefore to keep some short sighted pencil pusher from crippling the company with a failing infrastructure, the IT department has to show a "profit" for the services it renders.