You may have heard the buzz from some software developers touting their low (or lower) TCO (Total Cost of Ownership). But is cost the only criteria to use when evaluating your software and the value you obtain from it? It seems to me that focusing only on cost is similar to trying to improve your company’s bottom line by only reducing expenses.
Just as revenue is an equally important component of your bottom line, there is another component of software ownership: value. Granted, value can be difficult to quantify. But here are a few points of value that can distinguish one software solution from another:
- Better, faster, and more professional service to your customers.
- A wide range of reporting options, from quick and easy ad hoc queries to complex custom reporting capabilities.
- Secure transaction processing with an audit trail that can stand up to the closest scrutiny.
- Integration across the spectrum of business applications, including financials, operations, human resources, customer relationship management, EDI, and so on.
- Scalable system design that won’t require another investment when your company grows.
- A network of certified, knowledgeable professionals whose business is making sure your company is successful with the software.
There are many more points of value to consider. The bottom line here: don’t be fooled into only considering TCO. The Total Value of Ownership (TVO) is equally–if not more–important!
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