Total Cost of Ownership Optimized


As corporations prepare to make large investments in technology and infrastructure it is important to look not only to what will save a dollar today, but to what will reduce overall cost in the future, including all hardware, software, disk and development including the maintenance aspects of each. Organic technological growth creates long-term problems since short-term views determine spending policies.


As corporations evolve through centralization and de-centralization phases, processes and technologies must be defined to balance the challenges inherent in each scenario. Rigid centralization will result in high costs in development since any project will impact the whole infrastructure. At the same time, excessive de-centralization will result in high maintenance cost as the corporation will pay twice for the same work performed in different parts of the company.


SIS-G has experience helping our clients implement business intelligence and database infrastructures that will remain cost effective for years. We recommend upgrades at the optimal times, when new technologies are proven stable and have made the old ones obsolete. We ensure our consultants are trained in the latest technologies to better advise our clients in creating Governance Boards, Technology Roadmaps, and Centers of Excellence, Custom Methodologies, Standards, Procedures, Regulatory Compliance and Best Practice implementation.

Total Cost of Ownership Details
TCO Analysis Matrix - Expanded View Below


Cost of ownership analysis (or total cost of ownership, TCO), is a business case designed especially to find the lifetime costs of acquiring, operating, and changing something.

Those who purchase or manage computing systems have had a high interest in cost of ownership since the 1980s, when the large difference between IT cost and IT purchase price became known. The five year cost of ownership for major computing systems can be five to eight times the hardware and software acquisition costs.

Today, however, TCO analysis is used to support acquisition and planning decisions for a wide range of assets that bring significant maintenance or operating costs across a usable life of several years or more. Total cost of ownership is used to support decisions involving computing systems, vehicles, laboratory and test equipment, medical equipment, manufacturing equipment, and private aircraft, for instance.
Good TCO analysis brings out the "hidden" or non-obvious ownership costs that might otherwise be overlooked in making purchase decisions or planning budgets. The analysis begins with the design of a comprehensive cost model that completely covers the subject of the case, and which supports the purpose and needs of decision makers. The figure above, for instance is the structure of an IT acquisition cost model that works well for many situations. Cells of the matrix identify cost items that are planned and managed together (have common cost drivers); rows represent major resource categories, and columns represent IT system lifecycle stages.

Total Cost of Ownership - Matrix Foundation of Cost Analysis and Budgeting
Data Integration Deliverables - Consider More Costs than Original Development to Budget and Compute ROI

2016All rights reserved.     Chicago Web Design