{"id":14546,"date":"2022-10-20T17:03:39","date_gmt":"2022-10-20T15:03:39","guid":{"rendered":"https:\/\/insight-performance.com\/?p=14546"},"modified":"2023-05-29T10:09:23","modified_gmt":"2023-05-29T08:09:23","slug":"the-total-cost-of-ownership-tco-of-a-monitoring-solution","status":"publish","type":"post","link":"https:\/\/insight-performance.com\/en\/blog\/2022\/10\/20\/the-total-cost-of-ownership-tco-of-a-monitoring-solution\/","title":{"rendered":"The total cost of ownership (TCO) of a monitoring solution"},"content":{"rendered":"<h1><a href=\"https:\/\/insight-performance.com\/en\/blog\/2022\/10\/20\/the-total-cost-of-ownership-tco-of-a-monitoring-solution\/\"><span data-contrast=\"auto\"><span class=\"TextRun SCXW4054155 BCX9\" lang=\"FR-FR\" xml:lang=\"FR-FR\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW4054155 BCX9\">How to properly evaluate the TCO (Total <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW4054155 BCX9\">Cost<\/span><span class=\"NormalTextRun SCXW4054155 BCX9\"> of <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW4054155 BCX9\">Ownership<\/span><span class=\"NormalTextRun SCXW4054155 BCX9\">) of an application monitoring solution? <\/span> <\/span> <\/span><\/a><\/h1>\n<p>&nbsp;<\/p>\n<h2>TCO, What is it?<\/h2>\n<p><span data-contrast=\"auto\">In our field, TCO is an indispensable tool because it allows buyers to know exactly how much money they will have to pay for a product or service.<\/span><\/p>\n<p><span data-contrast=\"auto\">It is a concept that helps companies determine the true cost of an investment decision. <\/span><\/p>\n<p><span data-contrast=\"auto\">Traditionally, the focus has been on price to determine the cost of an acquisition. However, this can be misleading, as this expense is usually only 60-70% of the actual cost. <\/span><\/p>\n<p><span data-contrast=\"auto\">For the <a href=\"https:\/\/www.insight-performance.com\/decouvrez-nos-produits-de-supervision\/apm-produits\/\">application monitoring<\/a>, the TCO includes : <\/span><\/p>\n<ul style=\"list-style-type: disc;margin-left: 2.5em\">\n<li><span data-contrast=\"auto\">The purchase of the solution or License ; <\/span><\/li>\n<li><span data-contrast=\"auto\">Annual maintenance cost ; <\/span><\/li>\n<li><span data-contrast=\"auto\">Implementation cost; <\/span><\/li>\n<li><span data-contrast=\"auto\">Operating cost<\/span><span data-contrast=\"auto\"> (Updates, settings, security patches, electricity, etc.)<\/span><\/li>\n<li><span data-contrast=\"auto\">Upstream costs of the project :<\/span><\/li>\n<li><span data-contrast=\"auto\">Time spent researching on the internet to understand the topics<\/span><\/li>\n<li><span data-contrast=\"auto\">The hourly costs of all the people involved in the reflection on the subject, actors or not<\/span><\/li>\n<li><span data-contrast=\"auto\">Training costs<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">The share of each of these costs varies depending on the type of solution chosen (products, SaaS, managed service SaaS). It also depends on the solution&#8217;s scope. The more users the solution has, the more time and resources it takes to set up<\/span><span data-contrast=\"auto\">. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>In details<\/h2>\n<p><span data-contrast=\"auto\">If we try to evaluate the cost according to the solution by assigning values : <\/span><\/p>\n<p><span data-contrast=\"none\">Product:<\/span><\/p>\n<ul style=\"list-style-type: disc;margin-left: 2.5em\">\n<li><span data-contrast=\"none\">Purchase of a license: \u20ac\u20ac\u20ac<\/span><\/li>\n<li><span data-contrast=\"none\">Annual maintenance: \u20ac.<\/span><\/li>\n<li><span data-contrast=\"none\">Pre-project cost: \u20ac\u20ac\u20ac<\/span><\/li>\n<li><span data-contrast=\"none\">Implementation (project): \u20ac\u20ac (potential hidden costs)<\/span><\/li>\n<li><span data-contrast=\"none\">Operation: \u20ac\u20ac\u20ac (hidden costs, difficult to evaluate)<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"none\">SaaS solution:<\/span><\/p>\n<ul style=\"list-style-type: disc;margin-left: 2.5em\">\n<li><span data-contrast=\"none\">Purchase of a license : &#8212;<\/span><\/li>\n<li><span data-contrast=\"none\">Annual maintenance: \u20ac (risk on pricing policy)<\/span><\/li>\n<li><span data-contrast=\"none\">Pre-project cost: \u20ac\u20ac\u20ac<\/span><\/li>\n<li><span data-contrast=\"none\">Implementation (project): \u20ac\u20ac<\/span><\/li>\n<li><span data-contrast=\"none\">Operating: \u20ac\u20ac<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"none\">SaaS solution as a managed service:<\/span><\/p>\n<ul style=\"list-style-type: disc;margin-left: 2.5em\">\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Purchase of a license : &#8212;<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Annual maintenance: \u20ac\u20ac (risk on pricing policy)<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Pre-project cost: \u20ac\u20ac<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Implementation (project) : \u20ac<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Exploitation<\/span><span data-contrast=\"none\">:<\/span><span data-contrast=\"none\"> &#8211;<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">One of the problems with product and SaaS solutions is the presence of hidden costs. These costs are in essence very difficult to evaluate and they can come from different sources: hardware that hosts the solution, security patches or vulnerabilities on dependencies, advanced configuration of the solution. <\/span><\/p>\n<p><span data-contrast=\"auto\">In the case of <a href=\"https:\/\/www.insight-performance.com\/decouvrez-nos-produits-de-supervision\/dem-produits\/\">application monitoring (DEM)<\/a>, for example, the monitoring of a CRM like Salesforce with a user scenario should be completely changed in case of an interface update by the provider. <\/span><\/p>\n<p><span data-contrast=\"auto\">As we can see, the SaaS solution as a managed service is interesting because it contains no hidden costs. It is the supplier who takes care of the modifications necessary for the good use of the solution. The buyer can easily project these costs over a year.<\/span><\/p>\n<p><span data-contrast=\"auto\">The price structure also allows us to follow the company&#8217;s evolution and adapt to its growth. The risk on the supplier&#8217;s pricing policy is thus limited.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to properly evaluate the TCO (Total Cost of Ownership) of an application monitoring solution? &nbsp; TCO, What is it? In our field, TCO is an indispensable tool because it allows buyers to know exactly how much money they will have to pay for a product or service. It is a concept that helps companies [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":14547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[99],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The total cost of ownership (TCO) of a monitoring solution -<\/title>\n<meta name=\"description\" content=\"For more information, please visit our web site. - The total cost of ownership (TCO) of a monitoring solution - Maltem Insight Performance\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insight-performance.com\/en\/blog\/2022\/10\/20\/the-total-cost-of-ownership-tco-of-a-monitoring-solution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The total cost of ownership (TCO) of a monitoring solution -\" \/>\n<meta property=\"og:description\" content=\"For more information, please visit our web site. - 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