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When considering the level of Microsoft/Office and licensing, the biggest conundrum is generally around E3 versus E5 licensing. E3 licensing is closest to the capabilities organisations have had with perpetual licensing for the Office Pro suite. E5 licensing adds a slew of new services, including security, analytics, and advanced e-discovery and enterprise voice.
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Chargeback of enterprise-wide ICT costs were developed to assign ICT costs to the point of usage. The outcome is twofold; it ensures the initial allocation of ICT assets and services are identifiable, and it enables reallocation of underutilised or unnecessary services. This relies on IT creating assets and services which are commodified and transferable.
A chargeback arrangement can increase tension between ICT and the department managers. Allocating all ICT costs to achieve a zero-sum IT department can exacerbate that tension. Making IT fully responsible and accountable for IT costs can create insular behaviours which stifle innovation and investments in new IT services for departments. Departments will feel entitled to explore ICT improvements without an effective relationship with IT. Creating a chargeback governance model that manages disputes and builds trust in the process is preferable.
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