vRealize Business Taxonomy & Definitions

Before we dig into the solution itself, it is important to understand the key components that will be referenced in this vRealize Business

• Cost Model - a visual diagram that demonstrates and cost structure and flow of dollars through an organization.
• Cost Object - an element of a Cost Model that depicts a single cost item. Examples include server type, storage type, or a specific data center.
• Cost Group - an element of a Cost Model that is made up of multiple cost objects.  A cost group called 'Physical Servers' would contain several server cost objects like 'Linux', 'Windows', or 'Unix', for example.
• Cost Driver - in a Cost Model, these are the costs that a cost object inherits from other cost objects. For example, the cost drivers for Servers may be Data Center, Hardware, Software, and Labor.
• Allocation - in a cost model, this is the spread of costs from one cost object to another. An example would be that costs from Servers are allocated to Applications.
• Allocation Method - in a cost model, the manner in which costs are pushed to another cost object. This could be based on a predetermined percentage, price, or, most accurately, by actual consumption.