Why Total Cost of Ownership is a fallacy

If I have one more potential supplier try and sell me something on the lie that it will "reduce TCO" I will not only scream but I will beat them to death with a CAT 5 cable.

Total Cost of Ownership (TCO) is one of those almost unmeasurable values that seems to have pride of place in the salespersons portfolio. How do they KNOW a new system (with it's associated equipment, licensing and training costs) will work out cheaper than the old one?
The idea is that newer systems have better support so rather than training someone in an older system and maybe having to buy in more expensive skills more legacy systems it works out cheaper to upgrade or replace with the latest model.

I don't disagree that for some systems which are truly legacy such the old DOS or OS/2 application may well work out cheaper in the long run but the one thing that will truly reduce TCO?

  • Understand your systems.
  • Take time to test and document the fixes.
  • Use your call logging system as a knowledge base.

These three tips alone will truly reduce TCO.

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