Saturday, March 26, 2011

Managing your software with a TCO analysis

Since I am in the technology sector, I wanted to share about this term which many of the IT folks bounce into but are not sure of always. Total cost of ownership (TCO) of a software is essentially related to the costs which you or your organization which holds the software, may encounter while maintaining and using the software. Its very similar to maintaining a vehicle. This helps the managers and customers have a forecast of the spendings which they may need to do in order to keep their business running without any issues just because of the software. Speaking more about TCO, It is very less of a technological concept and more of a management and accounting one which doesn't really excite the developers but excites the management and the finances team. If you would like to learn and understand more about the analysis of performing a Total Cost of Ownership calculation, I would encourage you to look around the web for many resources and not confine yourself to a single source for information.

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