Shaun Snapp

Enterprise Software Tco: Calculating and Using Total Cost of Ownership for Decision Making Shaun Snapp

Why is the Estimation of TCO So Important to Enterprise Software Success?  The reason for the necessity of TCO is that the "price tag" on an item does not tell you a lot about that item's long-term total cost. This is true generally, but enterprise software is the extreme example of this well-recognized purchasing reality. In addition to the software license cost, there are implementation costs, support costs and maintenance costs. Without an understanding of TCO, there is a tendency to focus on acquisition costs--not only for enterprise software, but for any other item as well.  It seems that many entities would prefer that companies not actually know their TCO, and instead present it as something dark and mysterious. Some of the criticisms that have been directed at TCO almost seem directed towards influencing companies away from calculating TCO because it's "hard." However, not only is it possible to calculate TCO; it is necessary and important to know TCO in order to make effective IT decisions. This first and currently only book on TCO and enterprise software shows the way.