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Brightwork Research & Analysis

100% Independent Medical and IT Research

TCO Calculators

TCO Calculators

A Study into SAP HANA’s TCO (Complete) (2017)

ByShaun Snapp October 29, 2017May 11, 2022

Executive Summary Our HANA TCO study is a complete accounting of TCO without being funded by SAP. We provide a TCO estimate based upon actual real HANA case studies. *The introduction is in the free portion of the research and will not be repeated here. Video Introduction: A Study into SAP HANA’s TCO (Complete) (2017)…

Read More A Study into SAP HANA’s TCO (Complete) (2017)

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Getting Unbiased and Independent TCO Calculation

Disclaimer And Source Reliability for TCO Calculations

This TCO calculator or project planning calculator above is a sample -- it is not designed to be used to perform the TCO calculation or duration estimation for your project. Instead, it is only intended to be viewed as proof of concept.

An actual TCO calculation estimate requires more information specific to the software customer.

Important Point #1: Understanding the Industry Wide Issues with Estimation Scaling

There is no way to make regression formulas span moderately sized to enormous implementations in an online calculator. Once the number of users moves into the several thousand (real users, not people recorded as users but barely using the application or coming in through a portal that integrates to SAP), this calculator does not apply. One difference, such as how many current applications can be replaced by the standard functionality in the new application, makes a dramatic difference in the TCO of the estimation.

Important Point #2: The Issues With All TCO Calculations We Analyzed

We found that IT TCO calculation is performed by and controlled by IT providers. This would be like the TCO for automobiles owned by automotive dealers. Our in-depth research into published TCO estimation found no true TCO calculation in enterprise software.

All software vendors leave out essential costs, and their calculators always have the lowest TCO of their software. IT consulting companies do not want companies to accurately calculate TCO costs because their billing hours are such a high percentage of the total. Most TCO estimators we evaluated were constructed by people with no analytical background or interest in producing anything comprehensive or accurate.

Important Topic #3: Why TCO Calculations by Vendors Or IT Consulting Firms Results In Rigged Estimates

To calculate TCO accurately, first, one must be able to research to develop the TCO estimation. Second, one must be interested in calculating an accurate value, not using it for sales collateral.

Neither software vendors nor IT consulting companies have any background in research. This is something that both of these entities seem to consider irrelevant as to whether they have ever done this work before. We have repeatedly found that the marketing departments at these companies are willing to push out any TCO calculation regardless of the skills or understanding contained in their marketing department.

Important Topic #4: Why We Refuse to Interact With Software Vendors or Consulting Firms On Our TCO Calculators or Methods

This means the one performing the calculation cannot be a software vendor or IT consulting firm, as their only interest is to make the TCO of the application they are selling look like it is the lowest. One must not only not be one of these entities but must be entirely independent of these entities.

Over the years, multiple software vendors have reached out to us to "partner" with us on estimation -- all of them came from these vendors' marketing or sales departments. And the estimations were to be used to increase their sales. There has never been an interest in an objective estimate. (Note: If you are a software vendor or consulting firm, please do not contact us).

All TCO discussions presented by software vendors are the work of the marketing departments of those entities and do not reflect reality.

Any software vendor presents this page to you; know they have nothing to do with us. If any software vendor or consulting firm presents a TCO estimation to you, it will be rigged.

Can Use Our Method to Provide Software Buyers With a TCO Calculation?

Yes, we can. We provide in-depth TCO calculation services.

We use the models we have built to analyze many applications and customize the TCO calculation for implementing companies.

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