Total Cost of Ownership (TCO) is costing method used to calculate more accurate cost beyond initial investments including all associated costs. Proposed system and business case prior to the initiation of project does not provide and entire accurate total system cost and it usually includes only initial and maintenance cost. As soon as other costs are involved, the time value of money affects the overall cost of the system. Total Cost of Ownership is a technique used to calculate the more accurate overall cost.
Web Content Management (WCM) is a multi-channel communication system which is one of three most significant trends in today’s world. WCM serving as content repository and integration hub for business capabilities such as project information management and digital asset management. Capturing total costs of WCM is complex because of frequent maintenance like upgrades, hosting licensing. So TCO is needed to help the WCM to plan long-term maintenance which comprise few essential elements.
Implementation Variables: Implementation services costs are typically much higher than what vendor quoted. Vendor refers to the cost to get the system running and meeting basic functional requirements. As the project begin, additional costs like user experience and advanced customization comes into existence. So, before the project begin, better to think about how complex user interface is, which is directly proportional to multiplier cost (i.e., 1.5 – 3 times software license cost).
Content Migration: Business owners often overlook the content migration cost because they assume that it can be done in-house. Content migration is not an issue if the site include lesser pages. But, it becomes an issue when it is thousands of pages content and plays big part in budget. So, better to set aside 20 to 25 percent from implementation costs to content migration.
Integration Requirements: It is difficult to estimate the integration requirements cost without knowing the functionality of the website. If it is simple and direct navigation between the contents, then integration is not a significant cost. If the website has personalized user experience, then it becomes complex and integration becomes considerable cost.
Open Source Software: It is very complex to implement, maintain and provide security. Reduction of costs for open source software because of its no maintenance and no licensing cost is not always works. Roadmap for an open source is a risk of committing to an unknown future.
Managed Hosting: Hosting is a website is about either hosting environment or in-house environment. In-house includes setting up a development infrastructure, licensing, and technical staff. On the other hand, outsourcing can provide cost saving by avoiding inconvenience staff expertise. Virtualization can assists in reduction of costs from an outsourcing standpoint and other are bandwidth and core locations of hosting.
Web Content Management (WCM) is a multi-channel communication system which is one of three most significant trends in today’s world. WCM serving as content repository and integration hub for business capabilities such as project information management and digital asset management. Capturing total costs of WCM is complex because of frequent maintenance like upgrades, hosting licensing. So TCO is needed to help the WCM to plan long-term maintenance which comprise few essential elements.
Implementation Variables: Implementation services costs are typically much higher than what vendor quoted. Vendor refers to the cost to get the system running and meeting basic functional requirements. As the project begin, additional costs like user experience and advanced customization comes into existence. So, before the project begin, better to think about how complex user interface is, which is directly proportional to multiplier cost (i.e., 1.5 – 3 times software license cost).
Content Migration: Business owners often overlook the content migration cost because they assume that it can be done in-house. Content migration is not an issue if the site include lesser pages. But, it becomes an issue when it is thousands of pages content and plays big part in budget. So, better to set aside 20 to 25 percent from implementation costs to content migration.
Integration Requirements: It is difficult to estimate the integration requirements cost without knowing the functionality of the website. If it is simple and direct navigation between the contents, then integration is not a significant cost. If the website has personalized user experience, then it becomes complex and integration becomes considerable cost.
Open Source Software: It is very complex to implement, maintain and provide security. Reduction of costs for open source software because of its no maintenance and no licensing cost is not always works. Roadmap for an open source is a risk of committing to an unknown future.
Managed Hosting: Hosting is a website is about either hosting environment or in-house environment. In-house includes setting up a development infrastructure, licensing, and technical staff. On the other hand, outsourcing can provide cost saving by avoiding inconvenience staff expertise. Virtualization can assists in reduction of costs from an outsourcing standpoint and other are bandwidth and core locations of hosting.