Ownership Cost Issues

July 28th, 2017

Most Ukrainian companies just beginning to realize the importance of planning and reduce costs associated with the use of it (information technology). Natural question arises: what are the organizational and technological solutions should be used to control these costs? Start-up costs that are associated with the purchase of computers – is just the tip of the iceberg. How, then, to find out the real size for the maintenance of an information system? Methods tco Total Cost of Ownership (TCO – Total Cost of Owneship) is a technique developed in the late 80s by Gartner Group to determine the financial cost to own computers. This technique in 1994 was upgraded by Interpose, that turned it into a full model analysis of the financial aspects of using information technology. Why this method of tco? To calculate the financial cost of it, we take ledger and find the records, one way or another related to it – the salary it staff, purchase computers, accessories, consumables, etc. In terms of tco methodology is a "direct" or "Budget" spending on it. However, there is an implicit financial cost of maintaining "their" information system, the costs and losses associated with its operation, etc. etc.

Moreover, tco authors argue that such costs constitute the majority of the total cost of ownership of it infrastructure. These costs are called "indirect costs", and usually exceed the above mentioned "direct costs" of 3-5. That is, the company spends on its information systems much more money than expected guidance. Why is this happening and is it possible to optimize the cost of maintaining their it infrastructure? It is for these purposes and to create a procedure tco.


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