IT Value Report

Shootout at the TCO Corral

A few weeks ago VMware released a blast at Amazon’s recently released total cost of ownership (TCO) bake-off model that compared AWS cloud services with the on-premise vSphere suite of virtualization products. VMware called the AWS online tool “biased and inaccurate.” Oh my! That’s sort of like Manet criticizing Seurat because his dots are too small. The truth is, as a rule vendor-based TCO, ROI, and Value models are biased and inaccurate. Every major and many minor IT providers have focused on TCO as a key function in their marketing and sales strategies. They often become the basis for ROI projections and business case justifications. And virtually all of their models are biased and inaccu

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International Institute of IT Economics