By Scott Davis
As communications technology has evolved, so has the terminology. Telecom Expense Management (TEM) initially centered around telecom and network spending. But as technology has shifted to the Cloud, more and more organizations are associating telecom expense to IT services. This has led to the vendors in the space developing a number of evolved terms like Technology Expense Management and IT Expense Management, among others. In this case, you may be wondering how it all differs from traditional Telecom Expense Management. More often than not, these terms may be used interchangeably. In this blog, we’ll break it all down to help clarify and eliminate any confusion.
Telecom Expense Management (TEM) is a framework coined by Gartner that defines the recommended principles to manage the procurement, provisioning, payment and cost allocation of telecommunications services. Initially associated with fixed-line telecom, the term has evolved to include wireless services and associated expenses.
Technology Expense Management (also referred to as TEM), on the other hand, takes things a step further to account for new IT assets such as cloud, software, platform, Internet of Things and other network solutions. It also encompasses the management of the services related to technology, like SaaS and PaaS for example. This term was introduced by a few of the traditional TEM vendors in the industry.
IT Expense Management (ITEM), is a framework that was also initially introduced by Gartner. It’s their equivalent to Technology Expense Management (above) and represents a clear extension of IT spend categories that can be covered with Telecom Expense Management approaches.
At Calero, we have adopted the IT Expense Management category name.
The Calero ITEM solution supports the entire arena of IT business operations by providing clear, real-time transparency into all IT assets and services, driving significant visibility, control and ultimately cost savings. By automating the management of IT expenses, assets, services and usage, this creates multiple opportunities to focus on more strategic initiatives and resource allocation. ITEM is a component of our overall Cloud and Communications Lifecycle Management (CLM) approach. Calero not only focuses on providing visibility and controlling spend, we help manage the full spectrum of the cloud and communications lifecycle from procurement to payment.
ITEM is far more than a stand-alone tool. By design, it helps to connect the dots between a number of other IT management tools including ITSM, ITAM and ITFM. Want to learn more about this connective tissue? Read more here.
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