There is an emerging consensus in the information systems community that the ‘Total Cost of Ownership’ TCO is the most appropriate measure for deciding on software acquisition & deployment. It does not matter if the software is made for the public or private sector or whether the software is a proprietary or open source.

This template of calculating the TCO (total cost of ownership) of a software project will give you the tool to compare two competing software investments and chose the winner that has a more compelling business case.

How does the TCO Calculator work?

The TCO includes the combined cost of acquisition, deployment and maintenance of an IT application throughout its useful life. In this TCO calculator, the individual line items are included in eight separate cost categories. The sheet include:

  • Software
  • Hardware
  • Staff & Admin
  • Environmental adjustments
  • Migration and transition
  • Non-availability
  • Training
  • De-installation & disposal

The TCO excel template for software includes the following sheets:

  • General
  • Common Costs
  • Option 2, 3 & 4
  • Summary 1
  • Summary 2

Download the document and get access to the cost model and the world famous method for calculating TCO for systems and applications.

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