Bogus TCO

A lot of discussion goes into TCO for organizations.  Choosing this Management product over this other one because it does X,Y, and Z while the other only does X and Y will produce a lower TCO.  Running this Operating System as opposed to this other one will give you a lower TCO in this scenario.  Who came up with this new age version of Voodoo Economics?  IT departments need to constantly get feedback from their user community as to what they need to do their jobs better.  They should actually be going out of their ways to learn the daily processes and job functions of the customer base they are supporting so that they can be better informed to make decisions that will benefit the company to the greatest extent.  Does having a snazzy web reporting module showing disk queue length for all your servers really benefit your customers?  Does this justify paying more for a product when the other one does the same thing through an Administrators Console?  How about Patch Management features in your product?  Does it allow you to customize patching, reboots, etc around your customer’s schedules or does it abruptly interrupt work?  Doesn’t this work stoppage work against TCO and in fact raise it?  Its all about the ‘X’ factor.  Management of your enterprise is about having product sets that are flexible enough to adjust to your organizations needs.  Leave the bells and whistles for Hallmark.

One thought on “Bogus TCO

  1. Cheer… cheer… clap.. clap… I am nevery a big fan of TCO. I don’t think it justifies anything. I was forced to come up w/ TCO so many times in the past as part of our products’ value propositions and we always skewed the number toward our products anyway. Most of the time after I presented, I feel that the audience just brushed aside the TCO. Yet, other product managers and sales force have to have them in there.

    I think that managers/execs should evaluate the products to see if a) can the products improve the current situation, b) can the products easily scale to accommodate future growth, c) can the products easily be adopted across organizations (i.e. would the products have a buy-in from would-be users). That allows them to step out of the TCO shadow and look at the bigger picture.


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