Historically, IT managers and leaders have relied on tools like TCO, or “Total Cost of Ownership,” to analyze and stack rank various projects and IT priorities. This approach works well when the types of application services being delivered aren’t changing much; it’s simply a cost comparison. Rackspace, like many service providers, has a TCO tool and associated Advisory Services (see the TCO white paper as well) that does a great job of providing a thorough analysis for mostly static environments where outsourcing, hosting and/or managed colocation are excellent first steps for organizations beginning their IT cloud transformation journeys and/or for specific legacy workloads not suitable for re-architecting due to cost or risk reasons.
As you evaluate the computing landscape at your company, you’ve probably become used to calculating the total cost of ownership (TCO) of computing assets based on buying and owning a hardware and software. When those assets are transferred to the cloud, your analysis changes due to different financial and operational implications.