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Why you should care about Total Cost of Ownership

KristenReyes

Guest blog written by Leigh Carpenter, WW HP Servers ROI/TCO Manager

 

Latest Customer Facing TCO tool

One of the latest is the HP ProLiant 4P Consolidation Calculator,  which is designed with a simple purpose--to show the possible TCO savings of purchasing 4P servers compared to 2P ones. “Why bother,” you ask? When looking at SQL Server consolidation, do you automatically assume fewer servers equate to fewer licenses? Do you go beyond that? What if you have individual owners of the instances refuse to consolidate, to whom do you make a business case for consolidation? What should you include in the business case? Licenses are a big portion but TCO goes beyond that.

 

What is TCO?

Total Cost of Ownership is the complete cost of the solution to the business; that goes beyond licensing and infrastructure to include direct labor (administration), power/cooling and space costs. TCO can sometimes be expanded to include indirect costs such as downtime or loss of productivity.

 

And finally...why?

But again I hear, “Who cares?” Small or urgent projects rarely need justification, but go beyond that and people struggle. You may spend a large amount of time designing your perfect solution, and then put your hand out for the piece of budget you planned for, only to have it slapped away because of “priorities”.

 

Priorities are often decided by people outside your sphere of influence, and they look at all the proposed projects to decide which get the go ahead. Guess what they use to decide? Yep, you guessed it, TCO and ROI, at a minimum.

 

Imagine the surprise on their faces and the delight on yours, because your project was approved because you walked in prepared and proved the value of it over a time period?  Now that's priceless.

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About the Author

KristenReyes