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TCO or something better?

Stan James
(instanceof Sidekick)
Ranch Hand

Joined: Jan 29, 2003
Posts: 8791
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!!


A good question is never answered. It is not a bolt to be tightened into place but a seed to be planted and to bear more seed toward the hope of greening the landscape of the idea. John Ciardi
Jeanne Boyarsky
author & internet detective
Marshal

Joined: May 26, 2003
Posts: 30789
    
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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?


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Stan James
(instanceof Sidekick)
Ranch Hand

Joined: Jan 29, 2003
Posts: 8791
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.
 
I agree. Here's the link: http://aspose.com/file-tools
 
subject: TCO or something better?