A data center is a long-term asset. It is important to know and understand all the different costs that can be associated with owning and operating one. Oftentimes, a Total Cost of Ownership Model is solely comprised of a simple spreadsheet comparing price and cost differentials. This method, however, can make it easy to ignore the bigger picture and fall prey to a decision based on upfront costs. A well-crafted Total Cost of Ownership Model and Analysis Report can help the data center see the bigger picture and make the best choice for the data center in the long term.
A Total Cost of Ownership (TCO) Model and Analysis Report can be a useful tool tailored to suit your data center’s type, function, and other unique details in order to determine TCO, make an accurate comparison, understand the pros and cons, and enable an informed decision. The report can be used to compare different data center designs or different component and/or equipment choices. Due to the expensive and labor-intensive nature of owning and operating a data center, this in-depth analysis is often very necessary to avoid costly mistakes and to make the best choices for the continuing viability of the data center. A well-made TCO and Analysis Report lays out a comparison clearly and accurately, allowing non-technical executives to quickly ascertain the value of each and choose which option makes the most sense. Below are important elements you should consider including in your TCO model and analysis, although the order, detail, and length of the sections can be adjusted to suit your company and its intention for the model and the analysis.