The total cost of ownership or total cost of ownership (from the Anglo-Saxon term total cost of ownership or TCO), is a calculation method designed to help users and business managers determine the direct and indirect costs, as well as the benefits, related to a product or system. It is specifically used for the purchase of computer equipment or software, and increasingly for the economic calculation of sustainable energy solutions.
The CTP offers a final summary that reflects not only the cost of the purchase but also aspects of use and maintenance. This includes training for support staff and users, the cost of operation, and the necessary equipment or consulting work, etc.
Analysis
The analysis of the costs associated with the implementation of a technology may include the following elements, as part of the TCO:.
• - Installation, configuration, warranties and licenses of computers and programs:
Servers with their corresponding operating system.
Desktop stations with their corresponding operating system.
Implementation and configuration of technology on servers and workstations.
Devices and software to establish communication over networks.
• - Technology governance:
Verification of the viability of the licenses regarding the required use.
Monitoring of guarantees and compliance with licenses.
Frequency of updates.
Data migration.
Integration with other information systems.
• - Staff:
Users.
Administrators.
Technical support.
Computer security.
• - Risk control, risk prevention and reaction to incidents:
Carrying out tests: functional, stress, load, abrupt crashes, user concurrency.
Computer security.
International life cycle cost
Introduction
The total cost of ownership or total cost of ownership (from the Anglo-Saxon term total cost of ownership or TCO), is a calculation method designed to help users and business managers determine the direct and indirect costs, as well as the benefits, related to a product or system. It is specifically used for the purchase of computer equipment or software, and increasingly for the economic calculation of sustainable energy solutions.
The CTP offers a final summary that reflects not only the cost of the purchase but also aspects of use and maintenance. This includes training for support staff and users, the cost of operation, and the necessary equipment or consulting work, etc.
Analysis
The analysis of the costs associated with the implementation of a technology may include the following elements, as part of the TCO:.
• - Installation, configuration, warranties and licenses of computers and programs:
Servers with their corresponding operating system.
Desktop stations with their corresponding operating system.
Implementation and configuration of technology on servers and workstations.
Devices and software to establish communication over networks.
• - Technology governance:
Verification of the viability of the licenses regarding the required use.
Monitoring of guarantees and compliance with licenses.
Frequency of updates.
Data migration.
Integration with other information systems.
• - Staff:
Users.
Administrators.
Technical support.
Threat identification
Identification of vulnerabilities
Design of the action plan.
Periodic audits (internal and external).
Insurance.
Encryption of stored data.
Encryption of transmissions.
Backups:
Frequency of realization.
Storage of copies (onsite or remote).
Encryption of backups.
Computer forensics:
Investigation of the incident and determination of the reaction procedure.
Backup compromise analysis.
Recovery of the operation to a safe state without compromised data.
Frequency of updates.
Data migration.
• - Operation:
Physical infrastructure and cost of land.
Electricity for equipment.
Complementary equipment (UPS, refrigeration, air filters, dehumidifiers, etc.)
Facility security:
Security personnel.
Access control to computer equipment.
Fire fighting equipment.
Equipment for electricity supply in case of cuts in the normal fluid.
• - System crashes and failures:
Costs associated with time off the air.
Recovery and stabilization costs.
Decreased performance (losses associated with delays in response times).
Operation under inadvertent failures (costs associated with this risk).
Loss of reputation.
• - Staff training (taking into account initial training and periodic updates)
User training.
Training for administrators.
Training for technical support personnel (levels 1 to 5).
Training for security personnel.
• - Long-term costs.
Replacement or dismantling of technology.
Scalability costs for:
Growth of the user base.
Increase in the amount of data stored.
International change (languages, time zones, international currencies, etc.).
Total cost of ownership analysis was created by the Gartner Group in 1987[1] and has since been developed into different methodologies and software tools. For example, the purchase of a computer may include the purchase itself, repairs, maintenance, upgrades, services and support, networking, security, user training, and licensing costs.
The CTP concept is widely used in the automotive industry. In this context, the CTP implies the cost of owning a vehicle, from the purchase, through gasoline and maintenance, and ending with the subsequent sale as used. CTP studies between various models help users decide which vehicle to purchase.
• - Risk control, risk prevention and reaction to incidents:
Carrying out tests: functional, stress, load, abrupt crashes, user concurrency.
Computer security.
Threat identification
Identification of vulnerabilities
Design of the action plan.
Periodic audits (internal and external).
Insurance.
Encryption of stored data.
Encryption of transmissions.
Backups:
Frequency of realization.
Storage of copies (onsite or remote).
Encryption of backups.
Computer forensics:
Investigation of the incident and determination of the reaction procedure.
Backup compromise analysis.
Recovery of the operation to a safe state without compromised data.
Frequency of updates.
Data migration.
• - Operation:
Physical infrastructure and cost of land.
Electricity for equipment.
Complementary equipment (UPS, refrigeration, air filters, dehumidifiers, etc.)
Facility security:
Security personnel.
Access control to computer equipment.
Fire fighting equipment.
Equipment for electricity supply in case of cuts in the normal fluid.
• - System crashes and failures:
Costs associated with time off the air.
Recovery and stabilization costs.
Decreased performance (losses associated with delays in response times).
Operation under inadvertent failures (costs associated with this risk).
Loss of reputation.
• - Staff training (taking into account initial training and periodic updates)
User training.
Training for administrators.
Training for technical support personnel (levels 1 to 5).
Training for security personnel.
• - Long-term costs.
Replacement or dismantling of technology.
Scalability costs for:
Growth of the user base.
Increase in the amount of data stored.
International change (languages, time zones, international currencies, etc.).
Total cost of ownership analysis was created by the Gartner Group in 1987[1] and has since been developed into different methodologies and software tools. For example, the purchase of a computer may include the purchase itself, repairs, maintenance, upgrades, services and support, networking, security, user training, and licensing costs.
The CTP concept is widely used in the automotive industry. In this context, the CTP implies the cost of owning a vehicle, from the purchase, through gasoline and maintenance, and ending with the subsequent sale as used. CTP studies between various models help users decide which vehicle to purchase.