Title: Total Cost of Ownership TCO: Does it measure up to helping you manage a tighter organization in thes
1Total Cost of Ownership (TCO) Does it measure
up to helping you manage a tighter organization
in these tight times?
2Thanks to these Gold Level Sponsors
Thanks to these Silver Level Sponsors
3Established in 1981, Accretive Solutions is a
national professional services firm providing
non-attest accounting, tax, finance and corporate
governance services with a staff of over 1,100
experienced professionals.
Accounting Finance
Enterprise Governance
Business Technology
- Project Management
- Finance Accounting Support
- System conversion and integration
- Due Diligence Analysis
- Litigation Support
- Year End Support
- Start Up Services
- Mergers Acquisition Integration
- Project Management
- Internal Audit Services
- Business Risk Compliance Services
- Technology Risk Management Services
- Information Technology Audit
- Quality Assessment Reviews
- Fraud Forensic Reviews
- Audit Committee Advisory
- Solutions Delivery
- Project Program Management
- Business Process Improvement
- IT Strategy
- Solutions Delivery
- Enterprise Systems
- Organization Human Performance
- Interim IT Management
- Instructional Design Training
- Merger Acquisition and Divesture Services
- IT Quality Management
4"Large firm expertise, midsize firm value, small
firm responsiveness"
- Tax planning and controversy
- Business litigation
- Construction law
- Corporate, securities finance
- Commercial real estate
- Estate planning
5Since opening our door 20 years ago, our goal has
been simple to make sure our clients feel
secure and confident about their financial
future To help achieve this goal, HB focuses on
three areas
Team Approach to Client Service Tactical and
Customized Asset Allocation Comprehensive
Financial Planning
The result over 500 high-net-worth
relationships and counting
6Focused on the Client
Focused on the Client
www.t-u.com
7Thanks to these Silver Level Sponsors
8Total Cost of Ownership (TCO) Does it measure
up to helping you manage a tighter organization
in these tight times?
9The Panel
- John Carpentier
- Shareholder, Tarpley Underwood
- Bill Geist
- EVP Customer Services, CDC Software
- Om Kundu
- First Vice President, Suntrust
- Jeff Pyden
- Founder/Managing Director, OmniVue
- Don Campbell Moderator
- President/CEO, Virtual Management Technologies
10- What is TCO?
- TCO is a financial estimate that helps executives
determine direct and indirect costs of a product
or system. - TCO relates to an enterprises asset and/or
related systems total costs across all projects
and processes. - The total profitability picture.
- Other calculation examples
- Return on Investment
- Internal rate of return
- Economic value added
11- Network hardware and software
- Server hardware and software
- Workstation hardware and software
- Installation and integration of hardware and
software - Purchasing research
- Warranties and licenses
- License tracking - compliance
- Other migration expenses
- Infrastructure (floor space)
- Electricity
- Insurance
- Testing costs
- Downtime, outage expenses
- Diminished performance (i.e. users productivity)
- Security
- Backup and recovery process
- Technology training
12Operations and Maintenance
End-of-Life Management
Procurement
Total Cost of Ownership
13- Gartner Example
- Cost of Desktop PC - 1,200
- 4-year Cost of same PC - 5,867
- Cost of notebook computer - 1,500
- 3-year cost - 29,700 (9,900/year)
- Issues theft, damage, loss
14Total Cost of PC Ownership, 2008 Gartner Group
15Total Cost of Notebook Ownership by Travelling
Workers (Gartner, 2008)
16General TCO Cost Breakdown
- Common IT Ratios
- Capital Costs 21
- Technical Support 21
- Administration Costs 13
- End User Support 45
17(No Transcript)
18- Like any tool, TCO modeling does have
limitations. For example - Although very likely to reduce long-term costs,
TCO modeling itself may initially add cost by
asking procurement decision makers to gather and
consider more information. - Since TCO modeling tracks long-term, life-cycle
costs, capturing the benefits of TCO analysis in
a single years budget can be difficult. - TCO modeling does not assess risk or how well a
particular technology fits with an organizations
strategic goals or needs. - TCO modeling does not necessarily track
environmental or social costs and benefits.
Federal Government
19 20- Topics for Discussion
- Apply TCO to greater corporate planning effort
- Is it a valuable metric?
- How does it relate to changing economic
landscape? - What software tools are available to make TCO
easier?
21The Panel
- John Carpentier
- Shareholder, Tarpley Underwood
- Bill Geist
- EVP Customer Services, CDC Software
- Om Kundu
- First Vice President, Suntrust
- Jeff Pyden
- Founder/Managing Director, OmniVue
- Don Campbell Moderator
- President/CEO, Virtual Management Technologies