TCO Calculation
13 Jan 2010
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Calculation of Cumulative Cost of Possession As Optimization of Expenses On It
The majority of the Ukrainian firms only starts to realise an urgency of planning and decrease in the expenses connected with use IT (information technology). Naturally there is a question: what organizational and technological decisions are necessary for applying to the control over these expenses? Initial expenses which are connected with computer facilities purchase, is only iceberg top. In what image to find out the real sizes of expenses on the maintenance of information system?
Technique TSO
Cumulative cost of possession (TCO – Total Cost of Owneship) is a technique developed in the late eighties by company Gartner Group for definition of financial expenses for possession by computers. This technique in 1994 was usovershenstvovanna firm Interpose that has transformed it into high-grade model of the analysis of a financial side of use of an information technology.
What for this technique TCO is necessary? For calculation of financial expenses on IT we take the account book and we will find the records in one way or another connected with IT – the salary of employees of IT Department, acquisition of computer facilities, accessories, account materials etc.
From the point of view of technique TCO it is “direct” or “budgetary” expenses on IT. However still there are implicit financial charges of the “” information system, an expense and loss which are connected with its functioning etc., etc. And, authors TCO declare that such expenses make the most part of cumulative cost of possession of the IT Infrastructure. These expenses are called as “indirect expenses”, and usually exceed “direct costs” mentioned above in 3-5 times.
That is firms spend for the maintenance of the information systems much more means, than it is supposed a management. Why it occurs and whether it is possible to optimise charges of the IT Infrastructure?<