Saturday, November 24, 2012

[Analysys Mason]: How to Calculate the Cost of Data?

A paper by Amrish Kacker (pictured), partner, Analysys Mason, discusses the costing of data: "Costing of data is not an end in itself, but is the basis to understanding the key drivers that affect data costs and the cost boundaries within which the business can operate".

"A structured approach to costing can provide the information required for sound decision making, and needs to address the following key areas: Cost definition: what is the appropriate cost base? ..Cost recognition: what is the appropriate depreciation methodology in recognising the asset lifetimes and utilisation? .. Cost allocation: what is the appropriate basis for allocation of common costs across services?"

See "Mobile data services: a structured approach to data costing is the first step to profitability" - here.

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