Enterprise Software TCO: Calculating and Using Total Cost of Ownership for Decision Making - Softcover

Snapp, Shaun

Softcover

ISBN 10: 1939731275 ISBN 13: 9781939731272

Publisher: Scm Focus, 2013

Synopsis

Why is the Estimation of TCO So Important to Enterprise Software Success? 

The reason for the necessity of TCO is that the "price tag" on an item does not tell you a lot about that item's long-term total cost. This is true generally, but enterprise software is the extreme example of this well-recognized purchasing reality. In addition to the software license cost, there are implementation costs, support costs and maintenance costs. Without an understanding of TCO, there is a tendency to focus on acquisition costs--not only for enterprise software, but for any other item as well.  It seems that many entities would prefer that companies not actually know their TCO, and instead present it as something dark and mysterious. Some of the criticisms that have been directed at TCO almost seem directed towards influencing companies away from calculating TCO because it's "hard." However, not only is it possible to calculate TCO; it is necessary and important to know TCO in order to make effective IT decisions. This first and currently only book on TCO and enterprise software shows the way. 

About this title

From the Back Cover

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From the Inside Flap

Getting to the Detail in TCO

One aspect of making a software purchasing decision is to compare the Total Cost of Ownership, or TCO, of the applications under consideration: what will the software cost you over its lifespan? But most companies don't understand what dollar amounts to include in the TCO analysis or where to source these figures, or, if using TCO analyses produced by consulting and IT analyst firms, how the TCO amounts were calculated and how to compare TCO across applications. Not only will this book help you appreciate the mechanics of TCO, but you will also gain insight as to the importance of TCO and understand how to strip away the biases and outside influences to make a true TCO comparison between applications.

By reading this book you will:

• Understand why you need to look at TCO and not just ROI when making your purchasing decision.
• Discover how an application, which at first glance may seem inexpensive when compared to its competition, could end up being more costly in the long run.
• Gain an in-depth understanding of the cost categories to include in an accurate and complete TCO analysis.
• Learn why ERP systems are not a great investment, based on their TCO.
• Find out how to recognize and avoid superficial, incomplete or incorrect TCO analyses that could negatively impact your software purchase decision.
• Appreciate the importance and cost-effectiveness of a TCO audit.
• Learn how SCM Focus can provide you with unbiased and well-researched TCO analyses to assist you in your software selection.

A Book Based in Reality

The book provides many examples from real life project experiences, the emphasis being on the reality of TCO projects.

Interconnected to Web Information

In order the keep the book at a manageable and easily readable length, the book also provides numerous links out to the SCM Focus site, where supporting articles allow readers to get into more detail on topics that interest them.

Edition details

• Publisher: Scm Focus
• Publication date: 2013
• Language: English
• ISBN 10: 1939731275
• ISBN 13: 9781939731272
• Binding: Paperback
• Number of pages: 136