Chapter 9. Total Cost of Ownership Under Itanium

People in information technology today are looking at the cost of transactions as a way of determining TCO…and because of the amazing price–performance of a platform like Itanium, you can measure this. You're actually adding to the bottom line of the company with Itanium. In essence you're using technology to increase your margins, and margins drive profits.

—Kurt Steele, independent consultant for SAP Systems

In this Chapter

Today's IT departments have learned the wisdom of weighing the total costs and benefits of owning and operating technology. Rather than merely comparing the price of hardware options, they also have begun evaluating the indirect costs of installation, training, upgrades, and other requirements. Total cost of ownership (TCO) is seen as a more holistic view of IT costs across enterprise boundaries; see Figure 9-1.

Figure 9-1. What Is TCO?


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