Common Excuses For Skipping TCO
REALISTIC FEAR: "If I handed over a total cost of ownership analysis to the executive committee, they'd be so dumbfounded that we'd never be able to push the purchase through." Then, again, if the analysis shows that costs will be even higher if a new system isn't deployed, there may be incentive to move quickly.

MYOPIA: "Why devote time to an analysis when the cost of messaging is a pittance compared to most IT investments?" Messaging software tends to be the tip of a huge iceberg--a catalyst for a wide range of desktop upgrades, administrative staffing and other expenses. By some estimates the cost of acquiring software for a messaging system accounts for only 5 percent to 10 percent of overall TCO.

SLOTH: "Messaging, like electricity, has become infrastructure, for which TCO studies are unnecessary." Messaging, as infrastructure, no longer requires extensive cost-justification, but messaging isn't a commodity. The cost and value of messaging varies widely from business to business, as does its value as an applications platform. Failure to examine TCO can result in significant business losses.

RELIGIOUS BIGOTRY: "We wanted collaboration, and that's what Lotus Notes does" or "We wanted reliable e-mail, and that's what Microsoft Exchange does" or "We wanted standards, and that's what Netscape does." The problem here is that businesses may make the wrong decision based on bias, buying more or less functionality than is needed to meet business goals.

BLINDERS: "Our investment in [cc:Mail, MS Mail or NetWare] was strategic, so we are consolidating on [Notes, Exchange or GroupWise]." Change can increase costs, especially when it comes to training, but failing to understand costs can be even more expensive.

JOB SECURITY: "We wanted an application that integrates with our desktop apps, and it would be difficult to get fired for buying Exchange when Microsoft apps pervade the desktop/server environment." Bandwagons certainly have great value in reducing end-user training and administration, and many businesses also benefit from Microsoft's continued bundling of new functionality in its products. Still, cost savings in these important areas doesn't guarantee that any given product presents the best cost-value fit.