When considering a new IT infrastructure solution, the acquisition cost of the hardware and software to stand up the infrastructure is only the starting point for cost analysis.
Acquisition costs of hardware and software are generally easy to determine based on vendor quotes, particularly if allocated as CapEx (Capital Expense). Acquisition costs can also be calculated as fixed OpEx (Operational Expense), which is also easy to calculate based on direct vendar quotes. Other types of operating expenses that are not as easy to calculate and are often overlooked as part of TCO include:
- Deployment
- Training
- Software Licensing
- Scale-Out
- Downtime
- Management
All of these considerations contribute to the total cost of ownership (TCO) of the solution. With each area of consideration, organizations will need to evaluate their own needs, own processes, and specific costs to determine the actual numbers.