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Posted: November 9th, 2022
Total cost of ownership is a common phrase
Assignment
Total cost of ownership is a common phrase utilized to represent how much it really costs to own a PC, server, or any mixture of hardware devices of a system. The TCO thus includes the initial cost of a computer and software, hardware and software upgrades, maintenance, security costs, power costs, training and technical support among others (Snapp, 2013). A majority of estimates put TCO at approximately 3-4 times the real purchase cost. The TCO has turned out to be a rallying cry for organizations that support network computers (Blokdyk, 2019). On the contrary, network cost of ownership refers to expenses incurred in purchasing and hosting a network including but not limited to, software, hardware licenses, payments of leases, interest and fees incurred on leases, stationery, costs of communication, courier charges and any other resources associated with the network operation (Wallace, 2018).
From the viewpoint of the network manager, the most useful measure of network costs is distance. Costs of network can be measured by distance. So as to measure the cost over the network there is the need to have a precise layer of the desired network. This involves having a layer with line segments, also known as an edge, in the right spatial locations. That said, the network manager considers distance to be the most useful measure of network costs because the amount of distance covered by a network determines the costs that will be incurred; for instance, the longer the distances covered by the network, the higher the cost incurred and vice versa (Lange, 2019). Therefore, being aware of distance will enable the manager to identify routes that minimize expenses while limiting possible routes to a current network.
References
Blokdyk, G. (2019). Total cost of ownership a complete guide – 2020 edition. 5starcooks.
Lange, A. (2019). Centrality in strategic transportation network design: An application to less-than-truckload networks. Springer.
Snapp, S. (2013). Enterprise software Tco: Calculating and using total cost of ownership for decision making. SCM Focus
Wallace, W. (2018). IT governance: Policies and procedures (9th ed.). Wolters Kluwer Law & Business.
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