TCO - Glomark Assists Technology Providers and Buyers with their Total Cost of Ownership (TCO) Needs

Total Cost of Ownership (TCO) is one of those terms that has many definitions and interpretations; and therefore, TCO practices vary considerably among technology vendors, buyers, and consulting organizations.

TCO is not a new term – it has been used since the 50’s by various agencies in the U.S. government; however, it became very popular in the mid 90’s when IT analysts started publishing the TCO of PCs. These studies got a lot of people’s attention, and buyers starting doing TCO studies to find out the actual TCO of their PCs in their corporations, and vendors started introducing features in their products to help clients reduce TCO.

Unfortunately, TCO models and tools have been focused on technology area costs, and not on business area benefits. Formally released in 1997, Glomark’s Economic Value Creation™ (EVC™) methodology was the first one to include a Total Cost of Ownership and a Total Benefit of Ownership™ (TBO™) model in their methodology. This allows companies to go beyond the technology area costs in order to identify and assess the benefits in the business area from any technology or service initiative. The EVC methodology is contained in the Glomark Genius™ Suite of software tools. Genius™ Base Pro, for example, not only allows companies to create a TCO model and a TBO model, but also includes a Total Risk of Ownership™ (TRO™) model since there is always uncertainty on investment initiatives; thus making a study or Business Case more objective.

Glomark’s definition of TCO is founded on the traditional cost-benefit analysis used by millions of financial professionals around the world, and in addition is built upon an effective model and tool that allows a complete cost assessment. In Genius Pro™ the User can create a TCO model that includes:

• All Initial Deployment Costs – including capital and non-capital expenses
• All On-Going Post-Implementation Costs – Including external and internal expenses
• All Areas of the Enterprise – Including the technology area (e.g., IT) and the business area expenses

Glomark has created from basic to comprehensive TCO studies and Business Cases for technology and service buyers such as Nationwide Insurance, Crestar Bank, and Grupo Vitro. Many technology and service providers also use Genius™ Base to produce rapid, consistent and effective TCO, TBO and TRO studies for their clients.

Besides the Genius tools and consulting services, Glomark also offers many on-site training programs, as well many virtual courses, to assist organizations in developing the necessary skills and competence in TCO, TBO and TRO.

Contact Glomark at 614-459-5282 to learn more about Glomark’s TCO solutions. We will be very pleased to learn about your needs and recommend a solution for effective TCO, TBO and TRO assessments.