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Casual Articles - How to Find TCO (Total Cost of Ownership) of Custom Software Applications
Matching and MirroringNeuro-linguistic programs teach you a lot about the psychology of selling and it’s worth your while reading a book on this subject, or studying a tape. Matching and mirroring is one concept I believe you should adopt in a sales process. First of all, if you have several staff, try to use the salesperson that is closest to the customer’s age (and sometimes gender) because people tend to buy from people who are seven years on either side of their age, older or younger. This means a 27-year old is much more likely to make a purchase from a 20-34 year old than from a 45-year old.This is a form of matching and mirroring, although the expression is usually associated with body language – for example, if a customer has their arms folded, your
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cos
Management style varies according to company’s culture and staff. Managers need to have certain knowledge in order to develop a multicultural thinking and to increase the business efficiency.There is a process of constant learning, not only by the manager but also by the whole organisation, as the global environment of today asks for a multidimensional in order to successfully manage a multicultural workforce.The world is moving very fast towards a global economy. Competition between companies has exceeded national boundaries. Today, labour force is easier moved from one country to another. The European Union, for example, transforms Europe into an integrated buying and selling block which will compete as a major economic player. However, people s
We all have struggled to find exactly how much custom software applications cost to build, maintain, and enhance over their life. Accounting needs to know so they can budget accordingly, HR needs to know so they can assemble the team together, Management wants to know the Return On Investment (ROI) before embarking on implementation. Some applications are easy to calculate and others are not so straightforward. We all want our software application to be designed, developed, and deployed on time and under budget. Exactly how do you calculate total long-term cost of ownership or TCO? Do you have to stage “The Price is Right” for applications? Not really, the formula is very simple. When practiced every time it will help you budget, compare different alternatives, and save while creating successful software applications that exceed your customer’s expectations.
THE FORMULA:
First let me tell you a time-tested empirical formula(1),
Long-term TCO = (Fx + Lr) * [1 + (Roi/Qq)]
(Note) 1: Empirical formulas are not proven scientifically, but they can be accurately applied to most scenarios.
And I will now explain the 4 simple variables it uses:
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cost
This article continues my series on starting or restarting your business. By this time, you should know your business and how many prospective customers you can reasonably expect to buy from you. Now the moment of truth: Given everything you know so far plus your (hopefully conservative) assumptions, is your business concept viable? Answering this question requires some number crunching. This may not be your idea of fun but if a few hours of math avoids major problems down the road, then it’s time well spent. Remember that your business must serve your needs, so you are the logical place to begin. How much does your ideal lifestyle cost? Think abundantly and in terms of your ideal life. I’m not saying you need expensive tastes; I am saying that your tas
THE FORMULA:
First let me tell you a time-tested empirical formula(1),
Long-term TCO = (Fx + Lr) * [1 + (Roi/Qq)]
(Note) 1: Empirical formulas are not proven scientifically, but they can be accurately applied to most scenarios.
And I will now explain the 4 simple variables it uses:
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cos
Whether as an investment or an existing floor plan, space may well be the final frontier. To free more working space in a bustling Los Angeles office, one facility manager introduced a new filing and storage system that not only saved space, it improved filing efficiency and streamlined document retrieval in one of the busiest investment property offices in southern California.Amy Martin, owner of Universal Property Investments, identified improvements that needed to be made in the office. "Our building really stands out. It has a very modern, very 'today' kind of look," said Martin, "and we wanted the interior to work as well. We looked at our working area, our common areas, the general floor plan and the ergonomic factors we needed to incorporate into the floor p
THE FORMULA:
First let me tell you a time-tested empirical formula(1),
Long-term TCO = (Fx + Lr) * [1 + (Roi/Qq)]
(Note) 1: Empirical formulas are not proven scientifically, but they can be accurately applied to most scenarios.
And I will now explain the 4 simple variables it uses:
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cos
We're surrounded by advertisements that desperately compete for our attention. Everywhere we look, we find ourselves inevitably drawn to images of scantily clad attractive men and women that are supposed to somehow inspire us to purchase products they endorse. Sure, this attention-getting strategy is popular. But, is it effective?Sex appeal can increase the effectiveness of an ad or commercial because it attracts the customer’s attention. It’s human nature to be curious about sex. A pair of long legs on a billboard is more likely to catch (and hold) a guy’s attention than a puppy, regardless of how cute it may be. Even women are drawn to them, perhaps with the desire of having goddess-like legs.However, misuse of sex appeal can be costly. Many campaigns deem
THE FORMULA:
First let me tell you a time-tested empirical formula(1),
Long-term TCO = (Fx + Lr) * [1 + (Roi/Qq)]
(Note) 1: Empirical formulas are not proven scientifically, but they can be accurately applied to most scenarios.
And I will now explain the 4 simple variables it uses:
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cos
A bungled investigation can quickly turn a reasonable, still employed complainant into a hurt, damaged and angry former-employee-plaintiff. --AnonymousFor Tammie C. Allen, former admin assistant to MTSU President Sidney McPhee, the unsolicited advances, kisses, groping and requests for sexual activities from her boss were less injurious than the humiliating and biased sexual harassment investigation that followed her complaint. She expressed this outrage in a civil complaint, seeking monetary redress for incurred medical expenses and "severe emotional distress, mental anguish, indignation, wounded pride, shame and despair." Among the allegations: the investigators were under the direct supervision of the alleged offender; Ms. Allen’s attempts to provide
1. FIXED COSTS (Fx)
Start with the technical specifications and better yet, sit with the technical lead or architect to find out what are the fixed costs. Look at the deployment diagram and find out the cost of each box it shows. Now consider the cost of operating systems they will run on, and cost of all the tools that will be installed. Here are some pointers as to what a typical project may incur as fixed cost:
Hardware Costs
Operating Systems
Design & Development Tools
Database Systems
Backup Systems
Hosting Costs
Most recurring costs can be converted to a fixed cost by multiplying per cycle cost with number of total expected cycles over the life of the application.
Adding up all the values above will give you a total dollar amount, which is your Fx in the formula above.
2. LABOR COSTS (Lr)
Your project plan should have a section on time estimates. Again, your team-lead or architect can tell you more accurately how long is it going to take to build your application. Consider all roles and responsibilities from systems analyst gathering requirements, engineers developing it, to QA testing it and everyone else in-between. Estimate all their hours and put it in following three buckets:
Your Own Employees
Onsite Consultants
Offsite & Offshore Consultants
It is better to multiply each individual’s required hours and rate, but for large tea
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