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This Total Cost of Ownership (TCO) calculator provides enterprises with a framework for comparing the cost of building a new application to that of buying a new software package. The tool includes the following components:

  • Cost categories overview. An explanation of the major cost categories that should be included in the TCO analysis.
  • TCO calculator. A spreadsheet that dynamically calculates total cost per category, total cost per year, and overall TCO for building and buying.
  • TCO comparison graph. A chart comparing the two TCOs (building and buying) over a five-year period.

The TCO calculator facilitates the decision-making process by automating the calculations and providing a visual representation for rapid analysis.

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Search Code: 8263
Published: August 10, 2007
Last Revised: August 10, 2007


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