|
|
 |
 |
|
| |
| Controlling costs rationally
is one of the most effective ways to improve the value
of IT in an organization. We intend to help you make informed,
rational decisions when purchasing or considering a new
server operating system (OS). When evaluating platform
investment decisions, organizations should consider the
Total Cost of Ownership (TCO) per workload, the ability
to reduce complexity, and the ability to implement best
practices. |
| |
| |
What
is TCO?
Total Cost of Ownership (TCO) represents all
of the costs that are associated with a solution
over a given period of time. In general, TCO
includes not only hardware and software acquisition
costs, but also the costs of downtime, training,
outsourcing, and ongoing system administration
and management, with staffing costs being
the largest cost component. TCO typically
is calculated over the useful life of a system,
with broad studies often using 3- or 5-year
time horizons |
| |
| |
| |
Why
is TCO an important consideration?
TCO is a useful metric for decision-makers
who must evaluate IT solutions because it
quantifies the total costs associated with
each option and provides a more accurate picture
of how a given solution will impact IT budgets
over time. While some decision- makers focus
primarily on hardware and software acquisition
costs because they are more immediate and
tangible, those costs typically represent
a small fraction of total costs. Therefore,
TCO serves as a useful tool for decision makers
who need a broader and more accurate picture
of the costs of their IT systems. |
| |
|
|
| |
|
|
|
| |
Total
cost of Ownership
Contradicting the general perception that software costs constitute a significant portion of TCO, as per findings of
Frost and Sullivan study
into Indian corporate infrastructures, software cost is just
about 13% of the Capital expense. Soft costs (costs related to
associated planning, configuration and project management of
server environment) are significantly higher than software
costs. The below Pie Chart shows the typical India specific TCO
for enterprises. |
| |
|
|
 |
|
|
|
|
|
