Understanding factors contributing to high TCO's for software projects and helping customers eliminate these adverse factors will enable ISVs and their channel partners to create and capture additional value.
Lengthy RFP Process: Complex RFP processes that drag along for months are expensive and erode value of projects and increase TCO.
Causes of delay: complex licensing structures, lack of clear list of capabilities, perceived execution risk, cost of implementation
Implementation Costs: Professional services, which are complementary to software, in the same way as mortgages and houses, or hot dogs and mustard, account for a significant portion of the cost of the project. Remote customization and implementation templates provide the promise of reducing implementation costs. Reducing the cost of complements with automated migration solutions and help ISV's capture more of the value created, albeit at the expense of the party providing a less automated migration service. Automated migration solutions also eliminate switching costs that an incumbent may have built to retain some competitive advantage.
Causes: Migration/Rollout costs, complex dependencies between software - impact is usually broad; training and learning curves for corp IT developers and end users.
Costs of "Lights On" Operation: Periodic maintenance expenses, if not automated require systems administrators and increase chances of failure in systems when they are least expected. Periodic maintenance also has to be scheduled to fit into enterprise change management windows.
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