Conclusion: While the total cost of ownership model is helpful in an initial comparison of products and services, the familiar problem with TCO as an analytical methodology is evident1. This problem is especially clear when dealing with Google Apps because its costs of production and distribution are atypical of the software industry.

The assessment of price should be done in relation to, or in the context of features and benefits. These may be itemised as utilitarian functions and therefore it is possible to assign costs to each feature. The differences in requirements for each organisation mean that to a large degree, TCO evaluation should be done in the context of an organisation’s own situation.

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Guy Cranswick

About The Advisor

Guy Cranswick