Abstract: Evaluation of Total Cost of Ownership (TCO) of a new application is the primary focus of this paper. In acquiring new applications, an organization can choose the most appropriate choice from several that are available. Each choice comes with its unique TCO. The options discussed in this paper include Service (SaaS), Proprietary and Open Source solutions. Various requirements may influence the management to acquire a new application. These factors play a vital role in determining the cost of ownership of the software solution. Calculating TCO involves analyzing various componential costs. The two principal categories are direct and indirect costs. After examining the critical cost divisions involved in TCO calculation, the paper culminates in identifying the stages in the computation process, the users, and applications of TCO.
Keywords: Total Cost of Ownership (TCO), software solution, application, direct and indirect costs. formula for Calculating TCO, Return on Investment (ROI).
Title: Estimating Total Cost of Ownership
Author: Maan Shami, Adel Marghalani
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
