15 Aug Calculating the Total Cost of Ownership in Application Center Migration
In today’s economy, access to cloud technologies and virtualization are must-haves to stay agile and competitive in a global market.
Information Technology migration is a crucial component in business that drives communication, revenue, and growth. Ask any CEOs about cost projection, they will confer with numerous departments for concise costs of an IT migration project. It is complex which is why a Total Cost of Ownership (TCO) analysis is necessary to define costs and benefits clearly.
What Is Total Cost of Ownership?
A TCO is a full analysis of a business plan that collects data of anticipated costs to justify the value of IT project implementation. It is also necessary to validate the necessity by showing value in such an infrastructure change which generally drives asset acquisition as a benefit.
There is also a significant difference between purchasing and lifecycle costs when looking at application operations and TCO. The savings potential is exponential when looking at the lifespan of a company asset which negates IT responsibilities to a trusted migration partner.
Why Consider A TCO Analysis?
A purchase price does not tell the full story when it comes to calculating application center migration. There are three critical factors that asset managers and corporate want to look at when it comes to growth: purchase price, long-term maintenance costs, and the revenue potential. A TCO, therefore, is a benefit when uncovering clear and unknown cost factors.
The cost of ownership for application center migration would also need to include budgeting, asset management, cost accounting, and leasing or buying options. It will also be necessary to weigh the costs of in-house or vendor partnerships. When it comes to TCOs, it also helps support the purchasing decisions to acquire assets that boost a company’s competitive industry edge.
A TCO Completed by Connect Partners
When a company chooses Connect Partners, the TCO analysis begins in the vendor selection process. A TCO includes the lifespan of chosen assets as well as a year-by-year analysis of costs. Clear costs include purchasing, maintenance, warranty, labor, service expenses.
Connect Partner’s methodology for application migration is to create a TCO to validate the full lifecycle costs of project migration. Application center asset ownership research would investigate the cost of purchasing, installation, deployment, usage, and maintenance so that executives and shareholders calculate worth in updating the data center and application technology.
Additionally, part of TCO would configure the cost of an in-house project against the value of outsourcing the purchasing project to Connect Partners which includes services like expert consultation, consolidation of proprietary software, application migration, construction, and decommissioning.
Company costs like acquisitions, maintenance, reconfiguration, operations, user management, infrastructure IT support, compliance, insurance, security, financing, and decommission are much harder to calculate as it takes on unknown revenue and cost differentials which is where the expertise of Connect Partners will be an asset after infrastructure analysis.
When making this decision, it comes down to business as usual or system acquisition technology advancement. Connect Partners has performed more than 150,000 migrations for a wide scope of industries. Contact us or call 410-774-1000 to discuss your migration requirements.