Executive Summary

  • 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.

Introduction

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.

Solution Architecture Packages

The following links show the calculations of the solution architecture packages giving a comprehensive appraisal of moving to a particular architecture.
Architecture ComparisonSolution Architecture Link
Oracle with Two TeiredSAP Two Tiered ERP
SAP with Two TieredOracle Two Tiered ERP
100% Oracle100% SAP Versus 100% Best of Breed
100% SAP100% Oracle Versus 100% Best of Breed

How Much Do you Know About TCO?

References

See our TCO method, which is explained in the following book.