IT Value Report

Opex is a Vast, Complicated Mess

Network management, service management, business management, and operations management are all woven into a web of tools and "craft costs," or human expenses. Despite, or maybe because of its complexity, operators say opex has gone from a third of total cost of ownership (TCO) 20 years ago to over half of TCO today, and they expect it to climb to two-thirds or even three-quarters of TCO by 2020. Opex savings has turned into a prime objective for NFV because the opportunity to save is large, and getting larger." writes Tom Nolle Read more: http://www.nojitter.com/post/240170312/commoditization-sometimes-less-really-is-less

History of TCO

TCO analysis was popularized by the Gartner Group in 1987. The roots of this concept date back to the early 20th century... http://en.wikipedia.org/wiki/Total_cost_of_ownership

The Secret of Cloud Economics

The secret to cloud economics is utilization — every minute unsold is money you don’t get back,” said Greg DeMichillie, the head of product for Google’s cloud. “There are very few of us who can work at this scale.” "The manufacturing world is being shaped by several new forces—IoT capabilities, the understanding of total cost of ownership, and the work–life balance expectations of millennial employees—and how companies respond will define their success," said Jenn Callaway, MAPI's director of councils and business research." Read more: http://mhlnews.com/global-supply-chain/five-disruptive-changes-manufacturers-are-facing

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