Analyzing TCO: The nature and impact of Cost Differences

A lower Total Cost of Ownership (TCO) will yield a higher Return on Investment (ROI) because it integrates your operational budget into the business assessment.  This provides a holistic and long-term approach to the management of network spending.  The TCO analysis goes well beyond a particular proposal provided by a single vendor sales representative to include the total costs incurred over the lifecycle of a converged voice and data network deployment.

The TCO approach used by NuChoice helps to bring clarity and focus to the bigger picture.  It takes into account both your strategic and tactical goals and provides the financial data points and a structure that identifies your business value versus expenses.

The TCO Model is a flexible way to evaluate your individual benchmarks, and provides critical information regarding the relative “readiness” of your existing network for convergence.  The primary components of our TCO Analysis include, but are not limited to:

• Initial costs of the equipment and software solution in upfront capital outlay
• Investments required for additional configuration items due to unanticipated needs
• Costs of actual equipment, software licensing, and number of unique servers in the installation and deployment of the solutions
• Blended on-going annual maintenance and support fees
• Cost elements for the administration and operation of the total solution
• Other hidden cost drivers, including updating and patching software and managing virus-related fixes to vulnerable components

With NuChoice, you can always be assured of making the right choices for your communication and network systems, and enjoy the satisfaction that comes from meeting the challenges of today with confidence.