Total Cost of Ownership
TCO, The total cost of ownership is the right perspective for looking at a software investment. Whenever a company decides to invest in automating their business processes, it’s not ONLY the software application development or software licenses cost which they need to take into account, it’s the entire infrastructure which has to be considered. The infrastructure includes hardware, maintenance, upgrades, IT staff required to manage and other professional services (like for instance consulting) which could also be included in the same.
| |
RYO SUITE |
Internally developed client/server |
Traditional client/server |
License fees |
Rs.450,000 |
Rs.0 |
Rs.550,000 |
Professional services |
Rs.0 |
Rs.50,000 |
Rs.100,000 |
Maintenance, support & Upgrade |
Rs.0 |
Rs.0 |
Rs.546,000 |
| IT infrastructure & hardware |
Rs.0 |
Rs.300,000 |
Rs.300,000 |
IT Staff |
Rs.0 |
Rs.662,000 |
Rs.662,000 |
Engineering cost, development |
Rs.0 |
Rs.650,000 |
Rs.0 |
Engineering cost, maint. |
Rs.0 |
Rs.150,000 |
Rs.0 |
| |
|
|
|
Total cost |
Rs.450,000 |
Rs.1,812,000 |
Rs.2,158,000 |
Variance from RYO SUITE |
Rs.0 |
(Rs.1,362,000) |
(Rs.1,708,000) |
% Variance |
0.0 % |
(302.66) % |
(379.55) % |
| |
|
|
|
Total first-year cash outlay |
Rs.150,000 |
Rs.1,150,000 |
Rs.1,250,000 |
Variance from RYO SUITE |
Rs.0 |
(Rs.1,000,000) |
(Rs.1,100,000) |
|
|
|
|
|
This can be better explained through a comparison study done which is given below;
{The table in the PowerPoint with the comparison between RYO SUITE, customized software development and traditional client – server software licenses}
As seen above, (considered a CRM-Customer Relationship Management Software with the span as 3 years for calculation purpose) the internally developed client-server software and the traditional client-server software licensing total investment is over 300% more than ryosuite.com.
ryosuite.com also ensures minimal initial and recurring cash outlay as opposed to the other models.
It also enables the companies to plan their budgets more efficiently with an assurance that unforeseen market changes which might lead to certain upgrades in the system.
Also, the support, maintenance and upgrade costs are included in the services offered by ryosuite.com. |