How to Combine TCO Analyses for a Complete Enterprise Solution Architecture

Executive Summary Brightwork Research & Analysis combined TCO can be used to combine multiple solution architectures. This is a critical point in determining TCO. Introduction TCO presents an opportunity far greater than that presented by its general interpretation. TCO is often discussed in terms of its value for doing things such as assisting with the…

How to Use TCO Calculation for Making Better Decisions with Software Acquisition and Management

Executive Summary Brightwork Research & Analysis creates TCO calculators to help enable better decision making. This is a critical point in how to use TCO estimation. Introduction Developing TCO estimations is the difficult part. The more interesting part is actually using the TCO, as there many varied uses. TCO can be used specifically or generally….

The Brightwork Research & Analysis TCO Method Not Methodology

Executive Summary Brightwork Research & Analysis uses a comprehensive TCO method. How our method is different from most TCO methods. Introduction Consulting firms often use the term “methodology” without knowing what the word means. In this article, we explain why we use a method for TCO calculation and not a methodology. What is a Method…

How to Estimate The Duration of Consulting Effort for a Software TCO

Executive Summary Brightwork Research & Analysis uses an assumption regarding how long it takes to implement an application. This is a critical point in determining TCO. Introduction Of all the many factors that go into the implementation duration, the most important is its quality, specifically its implementability. We assign an implement-ability score to every application…

How to Estimate The Duration that Software Will be Used for a TCO Calculation

Executive Summary Brightwork Research & Analysis uses an assumption regarding how long an application is used. This is a critical point in determining TCO. Introduction How many years the company will use the application is difficult to estimate. The following quotation, which was obtained from interviews on this topic (this source prefers to be anonymous),…

How to Understand The Relatively Small Amount of TCO Calculation Performed by Software Buyers

Executive Summary The last thing most IT buyers want is an accurate TCO calculation. This article explains why IT buyers prefer underestimated TCO. Introduction TCO is barely performed in any shape or form in IT for either software selection or other IT decisions such as outsourcing, and when it is done, it is usually done…

Partial Cost of Ownership Calculation: How Financial Bias Commonly Undermines Software TCO Calculations that are Usable

Executive Summary The total cost of ownership, or TCO, for software is critical to estimating the ROI of a technology purchase. The problem is often who performs these TCO calculations. Introduction When it comes to enterprise software selection, calculating the total cost of ownership, or TCO, is critical for evaluating different products and estimating the…

The Many Reasons Why SAP’s TCO Claims Are Not True

Executive Summary SAP makes exaggerated TCO claims without providing evidence.  We cover how SAP presents its TCO story. Introduction TCO or total cost of ownership is the total cost of owning and operating an application. TCO means making a model that accounts for the different cost categories. I have written the only book on enterprise…