What is application TCO? And how can we get started on this in an organisation?

Hello @sakshi Chauhan, Here are the answers.

What is Application TCO?

TCO – Total Cost of Ownership

So, Application TCO is a set of reports that can be used to show the cost spent on various applications.

And how can we get started on this in an organization?

From my personal experience, using OOTB reports is a good way to get started with any new TCO report.

(OOTB – Out of the Box: These reports are in-built reports by Apptio that light up with the available data once you install the respective component)

To get to Application TCO, you may install components that start with “CT Apps –“. Examples: CT Apps – Applications, CT Apps – Servers, CT Apps – Network, etc.,

Varghese George, Is my understanding above correct? Anything to add from your side?

Hi Phaneendra,

Just to adding to what you said, in an Organization,  you may have N number of applications, so it would depend on the IT Leadership. What exactly do they want ?

Do they want to know the overall Costs of running Applications ? 

Does the organization want to know the Top 10 Applications in terms of Cost ?  In most cases, in an organization, it's a small number of applications which contribute the bulk of the Costs.

Now, once you've framed your problem statement, you'll have to figure out what are the available data sources. Now the Cost of running an application would include some of the following:

- Tickets: Tickets associated with that Application

- Labor: Costs of developing and supporting the application

- Servers, Storage: Costs of servers/storage on which the application is maintained

- Cloud Invoices: In case , the application is hosted by a cloud service provider

- Network Costs

For these above mentioned data, you'll have to figure out if you have the data available

Thank you Varghese George

An informative description:

audrey.mitch@regoconsulting.com/blog/2017/05/31/insight-into-application-tco-what-can-impact-and-how-to-configure">Insight into Application TCO - How TCO can drive organizational intelligence