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A Low Total Cost of Ownership is the Way to Go

Blog: The Tibco Blog

When you’re in the process of choosing an integration solution, cost is an important factor in the decision. For integration solutions, businesses need to consider the total cost of ownership (TCO). This isn’t just the cost to implement the solution; it’s the cost to implement, run, and maintain the solution over its lifetime. As you’re deciding on your integration solution, you want to go with the one that has the lowest TCO while delivering the highest number of benefits, including higher ROI.

TCO includes hardware and software acquisition, management and support, communications, end-user expenses, monitoring, the opportunity cost of downtime, training, and other productivity losses. This is something your organization needs to plan for when choosing an integration solution. Essentially, you need to decide how much you are willing to budget to invest in your integration solution.

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Three segments of TCO are start-up costs, operational costs, and retirement costs. Start-up costs are the costs incurred when putting new software into products. Operational costs are costs incurred while the software is in production. Retirement costs are the costs associated with retiring the software.

With choosing software that has a low TCO, you’ll see greater productivity gains. These gains can come in the form of service construction, service orchestration, and change management. You will also see more savings over time, requiring less costs to make changes. A low TCO will lead to improvements in ROI for digital initiatives that businesses are trying to implement

By leveraging a TCO model and calculator, like the one in Frank Cohen and Appvance’s PushToTest Integration Knowledge Kit, you will be able to build your business case when requesting budget.  

Download the full free kit today.

Appvance is the leader in AI-driven test generation, which is revolutionizing how software testing is performed. It helps enterprises dramatically improve the quality, performance, and security of their applications while transforming the efficiency and output of their testing teams.

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