What is the total cost of ownership:
When purchasing a new car, the savvy buyers factor in future operating costs when making the purchasing decision, including repair costs, fuel consumption and the resale value of the car. We may be able to afford the car now, or its repayments, but will we be able to continue to operate the car throughout its useful life until we dispose of it?
This is called the total cost of ownership (TCO). The total cost of ownership includes the initial purchase price and operating costs from purchase to disposal. Operating costs are incurred over the life of the product and could include insurance, service, repair, upgrades and energy consumption. The total cost of ownership should be factored into any buying decision.
There’s lots to consider!
When evaluating asset management software, the total cost of ownership should be a major factor in the decision process. Research the financial impact over the lifetime of the product before making the purchase. This includes:
- Initial purchase price of the software
- Server hardware, server software and floor space
- Power, cooling & UPS backups for related server equipment,
- Network setup and configuration
- Application Training
- Upgrades, patches and future licensing
- Downtime, outage and failure expenses
- Backup and recovery process
- Future upgrade or scalability expenses
- License renewals
- Data Migration when the CMMS is end of life
With such a long list of items to consider, understanding the total cost of ownership is essential when making the CMMS purchasing decision. If you have to get out Excel and build a complex spreadsheet to determine the TCO, you’re looking at the wrong CMMS!
Our CMMS is a cloud based subscription service, which means the software, hosting, security, upgrades, support, licensing and backups are bundled up into one simple monthly subscription. We manage the complex IT hardware, servers, network configuration, upgrades, patches, security, and daily backups so you don’t have to. And as we piggy back on Amazon EC2 server technology, your database is infinitely scalable so you can grow your CMMS as your company grows without having to upgrade IT hardware or software. Just keep adding those assets and work orders and the database grows as you grow!
What about training?
Making money out of CMMS implementations is not part of our strategy so we have also included inline video tutorials on each screen so you can train yourself how to use the CMMS in your own time for free.
We couldn’t make the decison any easier! Make sure you calculate the total cost of ownership when purchasing a new CMMS.