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All too often, TCO is just a buzzword. For TCO to provide reliable criteria upon which to base a procurement and financing decision, an end-to-end calculation must be carried out. But most companies (and providers) lack the expertise, experience, and time to do so.
CFOs love TCO calculations, but often they don't trust them. Unless all internal and external costs are included, the calculation is worthless to the finance department. CIOs are therefore well advised to provide their colleagues in finance with a comprehensive TCO overview.
Every large service provider offers TCO calculations, but they are biased toward the provider’s offerings, of course. Unless you have access to reliable benchmarks, it can be difficult to gauge this bias. Only independent (funding) partners can do that.
It is fairly easy to calculate the TCO for a single server, but only few have the resource & capability to calculate for an entire international IT infrastructure. This requires experience, benchmarks, and expertise that most companies simply do not have.
If you base your purchasing decision on TCO, are you locked in over the entire period of the contracts? No. Flexibility is key – it is not just about financial aspects, but also about satisfied users. The right financing partner can manage the contractual situation accordingly.
Do you have a different opinion? Would you like to know more? Then please feel free to contact me.
Executive Vice President Sales South-West Europe
Many thanks for your message to CHG-MERIDIAN.<br/>We will get back to you as soon as possible!