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The Chargeback view in BMC Capacity Optimization provides support for defining or visualizing chargeback information, for example, cost models and target hierarchies, and automatically generating chargeback reports in different formats.

You can access the Chargeback view page by navigating to Views > All Views > Chargeback.

Chargeback management in BMC Capacity Optimization is divided into two major use cases – Enterprise Chargeback, and Cloud Chargeback.

Before you begin

Before you can begin to use:

Chargeback for Enterprise

For Enterprise-specific use cases, the Chargeback solution in BMC Capacity Optimization requires the configuration and maintenance of targets, hierarchies, cost models and cost objects to be defined manually. You can perform this configuration activity from the 'Chargeback - Admin' page of the Chargeback view, before being able to generate reports and visualize them in the 'Chargeback - Report' page.

For more information, see Chargeback for Enterprise.

Chargeback for BMC Cloud Lifecycle Management

For Cloud Chargeback specific to BMC Cloud Lifecycle Management, the Chargeback solution, including its configuration, in BMC Capacity Optimization is completely automated. The only prerequisites to using Chargeback specific to BMC Cloud Lifecycle Management are:

  • Integrating Chargeback for BMC Capacity Optimization with BMC Cloud Lifecycle Management, and
  • Installing the Chargeback view in BMC Capacity Optimization

After these prerequisites have been met, you can view and manage BMC Cloud Lifecycle Management based Chargeback analytics, execution status, and reports as per the current BMC Cloud Lifecycle Management configuration specific to your enterprise.

In Chargeback specific to BMC Cloud Lifecycle Management, as opposed to Chargeback for Enterprise, you are not required to perform any activities related to Chargeback - Administration, as they are auto-configured for you by the Cloud Services, and Infrastructure Extractor ETLs.

For more information, see Chargeback for BMC Cloud Lifecycle Management.

Understanding the basics of Chargeback

In general, the prerequisite is that BMC Capacity Optimization should have a source of data about the entities and metrics on which you want chargeback:

  • The business or technical service to be charged for should be created, either manually in the BMC Capacity Optimization User Interface, or loaded via CMDB integration.
  • The systems contained in the service should be created. The systems can be created manually in the BMC Capacity Optimization User Interface, or loaded via CMDB integration or other OOTB or custom connectors.
  • The relationships between the service and the systems in it should be created, either manually in the User Interface, or loaded via CMDB or similar integration.
  • The metrics on these systems should be loaded, if any allocation or utilization based chargeback is to be calculated. This could be achieved through OOTB or custom connectors.

To understand how to take the above pre-requisites and translate them into chargeback reports, see Chargeback terminology.

Chargeback terminology

To understand Chargeback better, you need to be aware of the following terminologies:

Target

A target is an entity that utilizes a resource, and to which resource costs are charged back in turn. Target entities can be structured into hierarchies to represent either organizational or logical structures.

In essence, targets are customers (organizations, business units) that consume a service offering, to which service offering costs are charged back.

Cost object

A cost object is any entity with an associated cost that you want to measure. The process of calculating IT costs over time is called accounting. Cost objects can be classified into the following types:

Basic cost object

A basic cost object is any entity with an associated cost that you want to measure. For example, VM costs in terms of CPU and memory utilization, cost per instance of a Xen server, and so on.

Composite cost object

A composite cost object defines a typical set of service offering costs. This type of cost object applies simultaneously to the same service.

Fixed-rate cost objects

In a fixed-rate cost object, a fixed cost (equal to the cost rate) is accumulated on an hourly basis for the cost object allocated to the target.

The formula for calculating fixed-rate costs is:

In this formula:

  • cr is the cost rate
  • Δt is the time duration for which the cost object is allocated to the target.

Example

A fixed-rate cost object has a cost rate of $100 per hour.
It is allocated to a target T1 for 24 hours.

The accumulated total cost of the fixed-rate cost object is:
$100 (Cost rate) x 24 (Time duration) = $2400

Allocation-based cost objects

Allocation-based cost objects take into account the quantity of resources (or instances of cost objects) that are allocated to a target.

The formula for calculating allocation-based costs is:

In this formula:

  • cr is the cost rate
  • q is the quantity of resources allocated to the target
  • Δt is the time duration for which the cost object is allocated to the target.

The quantity of resources allocated to the target can change over a period of time, therefore the formula is applied to each interval, during which q remains constant. Later, all contributions are summed up.

Example

4 servers are allocated to a target T1 for 24 hours.
The cost rate per server is $10 per hour.

The total accumulated cost is:
4 (Servers) x $10 (Cost rate) x 24 (Time duration) = $960.

In this case, the cost rate has a (currency / (hour x server)) measurement unit that represents the cost for a single allocable server or single allocable instance of the resource.

Quantity allocations for allocation-based cost objects

The only data needed for calculating allocation-based cost objects is the quantity of allocated resources. This is called a quantity allocation, and is a characteristic of the cost object.

Utilization-based cost objects

Utilization-based cost objects take into account the measured utilization of resources (or instances of cost objects). They are also referred to as Measured Resource Usage (MRU).

The formula for calculating utilization-based costs is:

In this formula:

  • cr is the cost rate
  • Er is the resource consumption for a specific resource.
    The SUM is calculated over all resources allocated to the target.

Resource consumption

A resource and its corresponding cost object can have a measured utilization over time, which can be integrated over a given time interval to obtain the Resource Consumption.

The formula for calculating resource consumption is:

In this formula:

  • Ui are utilization samples over different time intervals
  • Δt is the time interval
  • E denotes resource consumption, because its meaning is very similar to that of of energy when utilization is interpreted as power consumption.

Examples of resource consumption

Example 1

A CPU has a 10% utilization for 1 hour, and 50% utilization for the subsequent hour.
It accumulates a total consumption of:
[(10% of 60 mins) + (50% of 30 mins)]\ = 36 CPU minutes

Example 2

In this example we consider CPU utilization in terms of GHz used.
A CPU is used at 3 GHz for 1 hour and at 1 GHz for the subsequent half-hour.
CPU consumption is calculated as:
(3 Ghz x 1 hour) + (1 Ghz x 0.5 hour) = 3.5 GHz x hour

Note: Here, the measurement unit is GHz x hour, which is equivalent to GHzHour.

Note

The choice of the most significant measurement for consumption depends on the resource type and available utilization metrics.

Named allocations for resource consumption

To compute resource consumption, you must know exactly which resource is allocated to a target. This is called a named allocation.

Cost rate

Cost rate is the price of a specific basic cost object, that is, the unit cost for the consumption of specific resources. For example, VM memory costs per hour, VM CPU utilization costs per minute.

Where to go from here

For more information on Chargeback for Enterprise, and BMC Cloud Lifecycle Management, see:

Related information

For detailed information on Chargeback API HTTP methods to instance, retrieve, modify and delete a Chargeback object with the help of specific API URI (Uniform Resource Identifier) patterns, see:

Working with the Chargeback API