{"id":92397,"date":"2020-08-26T19:42:18","date_gmt":"2020-08-26T17:42:18","guid":{"rendered":"https:\/\/prohoster.info\/blog\/administrirovanie\/svoyo-zhelezo-ili-oblako-schitaem-tco"},"modified":"2020-08-26T19:42:18","modified_gmt":"2020-08-26T17:42:18","slug":"svoyo-zhelezo-ili-oblako-schitaem-tco","status":"publish","type":"post","link":"https:\/\/prohoster.info\/en\/blog\/administrirovanie\/svoyo-zhelezo-ili-oblako-schitaem-tco","title":{"rendered":"Your Own Hardware or the Cloud: Calculating TCO","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Recently, Cloud4Y conducted a webinar<\/a><\/noindex>, dedicated to TCO issues, specifically the total cost of ownership of equipment. We received many questions on this topic, indicating a strong interest from the audience to understand it better. If you're hearing about TCO for the first time or want to learn how to properly assess the benefits of using your own or cloud infrastructure, it\u2019s worth reading on.<\/i>.<\/a><\/noindex><\/p>\n

When it comes to investing in new hardware and software, debates often arise over which infrastructure model to use: on-premise, cloud platform solutions, or hybrid? Many opt for the first option because it seems \"cheaper\" and \"everything is right at hand.\" The calculation is made simply: compare the prices of your own hardware to the costs of cloud providers' services, and then draw conclusions.<\/p>\n

This approach is flawed. Cloud4Y explains why.<\/p>\n

To accurately answer the question of \"how much does your own equipment or the cloud cost,\" it is essential to evaluate all expenses: capital and operational. This is precisely why TCO\u2014total cost of ownership\u2014was developed. TCO encompasses all costs directly or indirectly associated with acquiring, implementing, and operating a company's information systems or hardware-software complex.<\/p>\n

It is important to understand that TCO is not merely a fixed figure. It represents the total amount of resources that a company invests from the moment it becomes the owner of the equipment until it disposes of it.\u00a0<\/p>\n

How TCO Was Conceptualized<\/h2>\n

\nThe term TCO (Total Cost of Ownership) was officially introduced by the consulting firm Gartner Group in the 1980s. Initially, it was used in their research for calculating the financial costs of owning Wintel computers, and in 1987, the total cost of ownership concept was fully articulated for business use. This means that the model for analyzing the financial side of using IT equipment was created back in the last century!<\/p>\n

The widely accepted formula for calculating TCO is:<\/p>\n

TCO = Capital Expenses (<\/i>CAPEX<\/strong><\/i>) + Operational Expenses (<\/i>OPEX<\/strong><\/i>)<\/i><\/p>\n

Capital expenses (or one-time, fixed costs) refer only to the costs associated with the acquisition and implementation of IT systems. They are called capital because they are required only once, in the initial stages of creating information systems. They also incur subsequent ongoing costs:<\/p>\n