Total cost of ownership
On This Lesson 4 topics
This lesson is planned. The outline below lists the topics it will cover. The full lesson has not been published yet.
In this lesson
compute multi-year cost including the items usually left out.
Planned topics
- Include licences or usage fees, infrastructure, integration, operation, on-call, training, and upgrades.
- Staffing is often the largest cost: engineers needed to run and change it.
- Use a multi-year horizon (five years is common) and account for growth in volume.
- Make assumptions explicit so others can reproduce and challenge the numbers.
Draft outline details
Demonstration
a five-year TCO spreadsheet outline: rows for each cost type, columns for years, volume assumptions on a separate sheet, and a sensitivity table.
Check your understanding
Why is comparing a licence fee with zero wrong?
Show answer
Building also costs engineers, infrastructure, and maintenance.
Practice
Apply this lesson with the module's lab, exercises and quiz.
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