1. IntroductionInfo-Tech Research Group TCO ModelTotal Cost of
Ownership (TCO) CalculatorDirect CostsHardware & SoftwareThe
capital expenditures and lease fees for servers, client computers,
peripherals, network components, and software.ManagementThe costs
associated with network, system and storage management, including
labor staffing, maintenance contracts, and professional services or
outsourcing fees.SupportThe support staff labor hours and costs,
training labor and fees, travel, support contracts and management
overhead.ImplementationCost associated with the implementation of
the application. These usually include development (customization
and integration), testing, training, and consulting.Communications
feesThe inter-computer communication expenses for leased lines,
remote access, and allocated WAN expenses.Indirect CostsEnd user
ISThe cost of formal end-user training, casual learning, informal
support outside recognized IT support channels, self-development of
applications, and local file maintenance.DowntimeThe lost
productivity due to planned and unplanned network, system, and
application unavailability.
2. TCO CalculatorTCO CalculatorFill in the appropriate values
for each cost category. Please note that this calculator does not
take the depreciation of capital assets into account. Capital costs
are recorded at the time of purchase, rather than as an annual
depreciation cost. Once all the values are entered, go to the third
tab "TCO Summary Sheet" to view the summarized results.Direct
CostsYear 1Year 2Year 3Total ($)% of Total
CostHardwareServers0.00.00.00.00.0%Client
computers0.00.00.00.00.0%Peripehrals0.00.00.00.00.0%Network
components0.00.00.00.00.0%Maintenance
fees0.00.00.00.00.0%0.00.00.00.00.0%Total Hardware
Costs0.00.00.00.00.0%SoftwareLicense0.00.00.00.00.0%Maintenance
fees0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total Software
Costs0.00.00.00.00.0%ManagementNetwork0.00.00.00.00.0%Systems0.00.00.00.00.0%Storage0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total
Management Costs0.00.00.00.00.0%SupportSupport
staff0.00.00.00.00.0%Training fees0.00.00.00.00.0%Procurement
procedures0.00.00.00.00.0%Travel0.00.00.00.00.0%Support
contracts0.00.00.00.00.0%Overhead
labor0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total Support
Costs0.00.00.00.00.0%ImplementationDevelopment/customization/integration0.00.00.00.00.0%Training0.00.00.00.00.0%Consulting/system
integration0.00.00.00.00.0%Other0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total
Development Costs0.00.00.00.00.0%Communication FeesLocal Area
Network0.00.00.00.00.0%Wide Area Network0.00.00.00.00.0%Remote
Access0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total
Communication Fees0.00.00.00.00.0%Total Direct
Costs0.00.00.00.00.0%Indirect CostsYear 1Year 2Year 3Total ($)% of
Total CostsEnd User ISFormal end-user
training0.00.00.00.00.0%Informal end-user
training0.00.00.00.00.0%Self development of
applications0.00.00.00.00.0%Local file
maintenance0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total
End User IS costs0.00.00.00.00.0%DowntimePlanned
downtime0.00.00.00.00.0%Unplanned
downtime0.00.00.00.00.0%0.00.00.00.00.0%0.00.00.00.00.0%Total
Downtime costs0.00.00.00.00.0%Total Indirect
Costs0.00.00.00.00.0%Total Costs0.00.00.00.0
3. TCO Summary SheetTCO Summary SheetAfter filling in the
necessary values, the spreadsheet automically generates two TCO
summary graphs. The first graph illustrates the total difference
between the project's direct and indirect costs. The second graph
depicts the total direct and indirect costs per year.Direct Costs%
of Total CostYear 1Year 2Year 3Total Hardware Costs0.0%Total Direct
Costs0.00.00.0Total Software Costs0.0%Total Indirect
Costs0.00.00.0Total Management Costs0.0%Total Support
Costs0.0%Total Development Costs0.0%Total Communication
Fees0.0%Total Direct Costs0.0%Indirect Costs% of Total CostTotal
End User IS costs0.0%Total Downtime costs0.0%Total Indirect
Costs0.0%
3. TCO Summary Sheet000000
Total Direct CostsTotal Indirect CostsTotal Cost ($)3-Year TCO
Yearly Costs
00
3-Year TCO Cost Allocation - Direct versus IndirectDirect Costs,
78.4%Indirect Costs, 21.6%
