While 27 percent of men major in business, only 19 percent of women do, analysis by the American Association of University Women reveals. Women are less likely to study business in college. That gap in entrepreneurial intentions portents continued differences in rates of business ownership among men and women. In 2012, male college freshmen, for example, were more than twice as likely as female ones to report "business owner" as their intended occupation, the Cooperative Institutional Research Program at UCLA indicates. ![]() TCO example: What factors to consider when calculating the total cost of ownership of a hyper-converged infrastructure product.The core problem is lesser interest in business ownership among women than men. If a software vendor cancels a particular functionality after three years, no longer stocks parts after five years, or ends support for certain software, the business may be subject to unexpected and significant additional costs which could drive the TCO far beyond its initial estimate. TCO calculations cannot account for the availability of upgrades and services or the impact of vendor relationships. This might make support cost more than it does on another server but eliminates acquisition costs.Ĭost of ownership analysis generally doesn't anticipate unpredictable rising costs over time - for example, if upgrade part costs jump substantially more than expected due to a distributor change. This is bad because they cannot base purchasing decisions on uniform information.Īnother problem is that it is difficult to determine the scope of operating costs for any piece of IT equipment some hidden cost factors are easily overlooked - such as depreciation and warranty - or inaccurately compared from one product to another.įor example, support costs on one server include the cost of spare parts. ![]() ![]() Many enterprises fail to define a singular methodology. There are several methodologies and software tools to calculate the total cost of ownership, but the process is not perfect. Total cost of ownership of an IT product covers not just the initial purchase price, but costs of operating that product across its lifespan - when it is retired by an organization. The total cost of ownership must be compared to the total benefits of ownership ( TBO) to determine the viability of a purchase. Through analysis, the purchasing manager might assign a monetary value to intangible costs, such as systems management time, electricity used, downtime, insurance and other overhead. It can even include the credit terms on which the company purchased the product. ![]() TCO factors in costs accumulated from purchase to decommissioning.įor a data center server, for example, this means initial acquisition price, repairs, maintenance costs, upgrades, service or support contracts, network integration, security, software licenses and employee training. The overall TCO includes direct and indirect expenses, as well as some intangible ones that may be assigned a monetary value.įor example, a server's TCO might include an expensive purchase price, but indirect costs could include a good deal on ongoing information technology support, and low system management time because of its user-friendly interface.
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