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TCO is important to your CFO

Posted by: DCallaghan on June 01, 2002 03:52 AM
TCOs studies are intended to be used as an iterative, standardized process to assist in communicating your technical decisions to the people who write the checks. Its not important that they cover every nickel and dime, its just important that they provide a known framework on which you base purchasing decisions.

Define where you will be getting your data (using unsponsored data sources), what you will be tracking (support costs, training costs) and then define your critical assumptions (load times, downtime, per user, per dept, etc). Work with accounting to find out their expectations on fixed asset depreciation. Remember, you don't know accounting, they don't know IT.

This is an iterative process. Review and revise, documenting the revisions, quarterly.

Once you have a framework in place for communicating your assumptions, and a track record for being in the ballpark, you'll find the mutual frustration you feel in dealing with the bosses will go away. Pretty much ;)

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