The Web Economy/Total Cost of Ownership Pyramid: Difference between revisions
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*Total Cost of Ownership or TCO is the burning term used by practitioners to judge the real cost of using a software that includes warranty, support, training and hardware. | *Total Cost of Ownership<ref>http://www.dot-com-alliance.org/newsletter/article.php?article_id=161</ref> or TCO is the burning term used by practitioners to judge the real cost of using a software that includes warranty, support, training and hardware. | ||
*TCO are different from the Operating System level to the Business Application level. Desktop setup displacement cost saves a user only 3,000 unit price as compared to an ERP that costs about 300,000 unit price. | *TCO are different from the Operating System level to the Business Application level. Desktop setup displacement cost saves a user only 3,000 unit price as compared to an ERP<ref>http://www.oracle.com/corporate/analyst/reports/corporate/cp/es101306.pdf</ref> that costs about 300,000 unit price. | ||
*Implementation and Customisation as well as maintenance and support are the areas where Open Source is most crucial and attractive for vendors to sell such services. | *Implementation and Customisation as well as maintenance and support are the areas where Open Source is most crucial and attractive for vendors to sell such services. | ||
*TCO is only relevant if there is ROI (Return of Investment) involved. In the long term the TCO may skewed if there are indirect but important benefits such as a more independent and self reliant workforce. | *TCO is only relevant if there is ROI (Return of Investment) involved. In the long term the TCO may skewed if there are indirect but important benefits such as a more independent and self reliant workforce. | ||
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*Create or edit sub-pages of course materials within wikiversity. | *Create or edit sub-pages of course materials within wikiversity. | ||
*Discuss in the forum (link shall be provided) by offering your ideas and answering or comment on others' postings. | *Discuss in the forum (link shall be provided) by offering your ideas and answering or comment on others' postings. | ||
==References== | |||
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=Links to Student Notes= | =Links to Student Notes= | ||
Revision as of 02:39, 10 November 2008
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Resource type: this resource is a course. |
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Educational level: this is a tertiary (university) resource. |
TCO Pyramid
This is a lesson part of the module The Web Economy out of the Open Source ERP/Executive Diploma course conducted by a private university.
Topics
- Total Cost of Ownership[1] or TCO is the burning term used by practitioners to judge the real cost of using a software that includes warranty, support, training and hardware.
- TCO are different from the Operating System level to the Business Application level. Desktop setup displacement cost saves a user only 3,000 unit price as compared to an ERP[2] that costs about 300,000 unit price.
- Implementation and Customisation as well as maintenance and support are the areas where Open Source is most crucial and attractive for vendors to sell such services.
- TCO is only relevant if there is ROI (Return of Investment) involved. In the long term the TCO may skewed if there are indirect but important benefits such as a more independent and self reliant workforce.
Assignment Tasks
- Find out the TCO of using free operating system compared to using free ERP. Based the finding on a simulated live case with actual figures.
Activities
- Publish your works in an attractive manner in your user page, stating your own views and findings providing links to your sources. Use the talk page here to score marks.
- Create or edit sub-pages of course materials within wikiversity.
- Discuss in the forum (link shall be provided) by offering your ideas and answering or comment on others' postings.
References
Links to Student Notes
(Provided by Students - subject to edit ranking by tutor)
Notable Links to Resources
(Provided by Students - subject to edit ranking by tutor)
Sub-Pages
(Done in wikiversity as course material by the students under the guidance of the tutor)