Episode 15: Cost and Value — What’s the Difference?
In service management, cost and value are closely linked but not the same. This episode focuses on distinguishing these two concepts, which the exam often tests in subtle ways. Cost represents the resources required to deliver a service — the money, time, and effort invested. Value, on the other hand, is the benefit or outcome that the customer perceives from that service. For example, the cost of running cloud servers may be high, but the value to the customer could be even greater if it allows their business to scale quickly and reliably.
We’ll discuss why confusing cost with value can lead to poor decisions, such as cutting essential support functions because they appear expensive while ignoring the value they create in preventing downtime. By practicing with these distinctions, you’ll sharpen your ability to analyze service tradeoffs, which is useful both for the exam and for real organizational decision-making. This episode was produced by BareMetalCyber.com.
