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Total Cost of Ownership
Total cost of ownership (TCO) is a holistic view of information technology (IT) cost across enterprise boundaries. It is comprised of a comprehensive set of methodologies, models and tools to help organizations better measure and manage costs in order to improve the overall value of IT investments. Interchange Technologies, through its partnership with Compaq Computers, has received specialized training on TCO reviews and has unique access to TCO evaluation tools developed by one of the nations leading management consulting firms. These evaluation tools can help provide an understanding of the full range of IT costs and help you optimize them to achieve the overall best results for your organization.
The TCO outlook on IT investments was developed in 1987 in order to estimate the known and hidden costs of PC ownership. The methodology, data gathering and analysis have been applied to many areas from local area networks (LAN's) to wide area networks (WAN's) to client/server applications development. In order to develop and maintain the TCO models, actual costs were gathered from over 1,700 companies. Over the years, the data has been dynamic and constantly updated.
By carefully evaluating the TCO of all of the participating companies, a number of Best Practices were observed and documented. These Best Practices can assist companies in minimizing TCO and therefore have become an essential part of the model. The result of carefully studying how, when and where Best Practices were employed disclosed the fact that in those organizations that had the lowest TCO only 26% of the information technology costs were computer equipment and software as depicted in the following chart:
Interchange Technologies can outline these Best Practices for you and provide your organization insight into the products and services that can facilitate the implementation of these Best Practices. This, of course, will lead to a lower cost of operation and a greater value for your IT investment. For more information on TCO or for a FREE TCO snapshot that will require only 30 minutes of your time please contact us.
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