Cost Visibility
Understand how technology spending is distributed across applications, infrastructure, departments, and services.
IT Financial Management
What is IT Financial Management Software?
IT Financial Management software helps organizations understand, manage, allocate, forecast, and communicate the cost of technology.
Learn the basicsWhat is IT Financial Management?
IT Financial Management, often shortened to ITFM, is the practice of managing the financial side of technology.
Large organizations spend money across infrastructure, software, cloud services, employees, vendors, applications, and business services. ITFM helps finance and technology teams understand where that money goes and what business value it supports.
ITFM software brings this information together so organizations can make better financial and technology decisions.
What does ITFM software do?
Cost Allocation
Allocate shared technology costs to the business units, products, or services consuming them.
Budgeting & Forecasting
Plan future technology spending and compare budgets with actual costs.
Showback & Chargeback
Show business units what their technology consumption costs and, where appropriate, charge those costs back.
Technology Cost Modeling
Connect raw financial data with technology resources and business services.
Decision Support
Give CIOs, IT finance teams, and business leaders better information for technology investment decisions.
Who uses ITFM software?
ITFM platforms are typically used by CIO organizations, IT finance teams, technology business management teams, finance leaders, FinOps teams, and other groups responsible for understanding and controlling technology costs.
Example platform
MagicOrange as an ITFM software example
MagicOrange is one example of software operating in the technology financial management space.
Platforms such as MagicOrange can help organizations bring together financial and technology data, model technology costs, allocate spending, and provide visibility into how IT resources support the wider business.
Different ITFM platforms vary in their capabilities, integrations, implementation models, reporting features, and target customers, so organizations should evaluate software according to their own financial management requirements.
The simple idea behind ITFM
Technology spending
→
Financial data
→
Cost allocation
→
Business insight
In simple terms, ITFM software helps a company understand what it spends on technology, who consumes that technology, and whether that spending supports the business effectively.