Optimizing Total Cost of Ownership

ClearPath Forward3 minutes readNov 14th, 2012

What’s the best way to understand your total IT costs in business terms, rather than just in IT terms? What’s the best way to make decisions on IT initiatives and projects based on business benefits rather than just IT acquisition costs?

Working hand in hand with our ClearPath Appraisal Services, Unisys TCO Assessment Services measure and report on the distribution of IT costs for IT infrastructure, data management and storage, networking, facilities, and operations – both technology and people costs. These costs are then compared to industry averages provided by a respected analyst organization to identify how your IT organization and infrastructure compares in terms of total IT costs and human resource efficiency – your costs to support applications and infrastructure development, administration and management. This gives you a better way to understand true IT costs, to value the business effectiveness of ongoing and new IT initiatives, and to show areas and ways that you can optimize TCO.

There are two versions of the TCO Assessment – a Mini-TCO model that provides a rapid, reasonably accurate portrayal of total cost of ownership, and a Full TCO model that takes into account every aspect of your IT infrastructure, applications, operations and facilities costs in detail. Our models have been reviewed by Gartner and the metrics we calculate are consistent with the ones Gartner provides in published reports. Our TCO assessments can include applications cost areas and provide figures on cost per business item processed. Business items can be defined in any way useful to your business – in check processing, this might be cost per check scanned, imaged, and processed. In retail sales, this could be IT cost per store, per user, per transaction, or per inventory turn. In airlines, this could be cost per reservation. This helps you understand your IT costs on a business basis, rather than a technology basis.

Benefits flowing to your organization from our TCO services include understanding your total IT costs per year, and how these break down so we can identify areas for improvement of IT costs – for example, where would you benefit from Automation so you can move some of your IT staff from supporting systems to supporting new business initiatives. We provide a benchmark of TCO against industry averages, and a better understanding of what it costs to provide business processing, by whatever business item is relevant to measuring the performance of your enterprise.

So numbers in business terms, rather than just in IT terms. To help move the IT budget needle from administration to supporting business innovation.