Cost Analysis and Total Cost of Ownership

Summary

This chapter provides the quantitative tools needed to evaluate trust technology costs objectively. Students will learn to calculate network cost analysis, distinguish operating from capital expenses, model total cost of ownership, build cost projections, run cost simulations, and perform cost-benefit and break-even analyses. These skills are essential for cutting through marketing claims with hard numbers.

Concepts Covered

This chapter covers the following 11 concepts from the learning graph:

  1. Network Cost Analysis
  2. Operating Expense
  3. Cloud vs On-Premise
  4. Vendor Lock-In
  5. Total Cost of Ownership
  6. Cost Projection Model
  7. Cost Simulation
  8. Cost-Benefit Analysis
  9. Break-Even Analysis
  10. Business Requirement
  11. Functional Requirement

Prerequisites

This chapter builds on concepts from:

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