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A Simple Model for Determining True Total Cost of Ownership for Data Centers

November 8, 2007

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IBM Corporation
1 New Orchard Road
Armonk, New York 10504-1722


A Simple Model for Determining True Total Cost of Ownership for Data Centers

Data centers are mission-critical components of all large enterprises and frequently cost hundreds of millions of dollars to build, yet few high-level executives understand the true cost of building and operating such facilities. Costs are typically spread across the IT, networking, and facilities/corporate real-estate departments, which makes management of these costs and assessment of alternatives difficult. This paper presents a simple approach to enable C-suite executives to assess the true total costs of building, owning, and operating their data center physical facilities (what we are here calling the True TCO).

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