- The common thinking of over TCO or total cost of ownership is incorrect.
- TCO makes up the total costs in each comparative solution architecture combination.
Frequently various unsubstantiated proposals are made about that the different common combinations of applications cost. Some quite expensive applications are justified based on a “lower TCO.” What you see below are the only combined comparisons that we know of which are published.
You can consider this to be a solution architecture document. The intent is to arrive at real total costs for the different common combinations of IT decisions.
What Makes Up the Total Costs In Each Solution Architecture Combination?
The input to these combinations is based on our TCO analysis.
This compares the costs of a combination of different applications to come to a total cost. The TCO that we use is comprehensive. It is explained in the section on TCO in detail. This solution architecture document is good for performing comparative analysis. This type of analysis is very rarely performed, so IT buyers never get a full picture of their solution architecture costs.
|100% SAP||100% Oracle Versus 100% Best of Breed|
|100% Oracle||100% SAP Versus 100% Best of Breed|
|SAP with Two Tiered||Oracle Two Tiered ERP|
|Oracle with Two Teired||SAP Two Tiered ERP|
How Much Do you Know About TCO?
What We Do and Research Access
Using the Diagram
Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.
See our TCO method, which is explained in the following book.
Getting to the Detail of TCO
The Mechanics of TCO
- 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 significant 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.
- Chapter 1: Introduction
- Chapter 2: The Basics of TCO
- Chapter 3: The State of Enterprise TCO
- Chapter 4: ERP: The Multi-Billion Dollar TCO Analysis Failure
- Chapter 5: The TCO Method Used by Software Decisions
- Chapter 6: Using TCO for Better Decision Making