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TCO or something better?

 
Stan James
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Does anyone have experience computing or comparing Total Cost of Ownership for in-house or COTS applications? Is this still a legitimate model or are there better economic models for software? I think someone wants to ask things like:

In justifying a new system, how do I minimize ongoing costs and improve my ROI?

Which of two existing systems is more cost effective to keep and which should I shut down?

How can I reduce those giant maintenance and support budgets and make room for more new development?

I found some useful papers and articles on Google, but I'm afraid there are new ideas I'm not searching for. Thanks!!
 
Jeanne Boyarsky
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Originally posted by Stan James:
Which of two existing systems is more cost effective to keep and which should I shut down?

I think I'm missing something here. The two systems are TCO and what else?
 
Stan James
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Which of two existing systems is more cost effective to keep and which should I shut down?


TCO - total cost of ownership - is one factor in a decision like this. It takes into account all the costs of running a system over time: support, training, expendable materials, license and subscription fees, lost opportunities, downtime, maintenance and potentially dozens of other metrics. My impression from Googling for articles is that few shops track these costs well enough to use TCO this way effectively.

It's also a factor in deciding what to buy or build, and less often in identifying opportunities to optimize any of those metrics in a production system.
 
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