Current Spend Analysis (CSA)/Financial Modeling

financial-modeling

Bick works with clients to develop financial models as part of an analysis of strategy or to define current spending in terms that can be readily evaluated and compared.

Many organizations have not created financial reports that enable an effective comparison with competing IT service delivery models. Understanding how your organization stacks up financially against colocation, managed services or cloud services is a common CIO requirement today. At Bick, we work tohelp our clients first understand the taxonomy of these competing services and then collaboratively build financial models.

This is a substantial activity that involves all managers who budget authority within the IT organization. As such, some may be threatened by this activity and thus senior level sponsorship is required for success.

Our Point of View

  • Many organizations do not have an understanding of their data center TCO. Having the total dollar figure is not sufficiently useful as it is difficult to compare against third-party provider fees. Consider financial metrics that are similar to the third-party providers’ pricing.
  • Data centers are long term investments, whether you own yours or not. A 10 or 15-year comparison will provide more insight as to the required level of investment versus a point in time comparison.
  • Knowing when you have sufficient information to make a decision enables projects to move forward faster.

We Work Differently

While we are interested in having long-term relationships, we do not engage in long-term contractrelationships. We prefer to conduct our consulting engagements in modules – defined, fixed fee engagements that address a set of defined issues over a relatively short period of time.

Our clients appreciate a stepped approach that allows them to define the specific needs they have for each module.As we complete a module, we have better clarity around what is best to address next. Our clients seek independent advice to solve difficult issues. Consequently, Bick Consulting’s operating model has no business agreements with the vendor community – no software, hardware, services, colocation, outsourcing etc. We are not engaging in a consulting opportunity as a means to an on-going revenue stream.