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The Web Economy/Total Cost of Ownership Pyramid

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Revision as of 02:39, 10 November 2008 by wikademia>Red1 (putting in references)

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Resource type: this resource is a course.
Educational level: this is a tertiary (university) resource.

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TCO Pyramid

File:TCO.gif
Total Cost of Ownership 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)