1. 2012 VMware Inc. All rights reserved Measures that Matter - perspectives on IT Financial Management < name > < Title >

2. 3 According to Gartner Cost Optimization and Cost Cutting Are Not the Same Thing Organizations need to build a discipline around cost optimization that results in continuous improvement in IT efficiency. Avoid investing in a tool without a clear plan as to how the organizations ITFM capabilities can evolve over three years Get the CIO, the IT leadership team and the finance organization onboard.

3. 4 What are the measures that matter to all ?

4. 5 CTO Cloud CFO Financial Discipline CIO Cost Optimization Three perspectives

5. 6 Cost of Service Reduce Costs Wisely Accountability Broker of IT Services Transparency of total cost of service delivered and underlying drivers Cost Optimization Cloud Financial Discipline

6. 7 Budget Variance Avoid overspend Predictability Manage the on-demand effect Difference between actual budget spend and forecasted plan Cost Optimization Cloud Financial Discipline

7. 8 Innovation Ratio Add Value Governance Private vs. Public The ratio between IT spend on run the business vs. change the business (?) Cost Optimization Cloud Financial Discipline

8. 9 3 Measures x 3 Perspectives on IT Financial Management Avoid Overspend Predictability Manage the On-Demand Effect Reduce Costs Wisely Accountability Broker of IT Services Add Value Governance Private vs. Public Budget Variance Cost of Service Innovation Ratio Cost Optimization Cloud Financial Discipline

9. 2012 VMware Inc. All rights reserved Measures that Matter - perspectives on IT Financial Management < name > < Title >