The Impact of a Total Cost of Ownership Model

Date Added: Sep 2009
Format: PDF

Operators are increasingly focused on a basic formula: capital and operational costs divided by revenue. As investments in capital equipment and operational costs increase, the revenue for some operators is simply not growing at the same pace. Operators have to find a way to grow their revenues through new services, but they must also minimize their capital and operational investments at the same time. Therefore, all dimensions of the investment decision need be considered: short-term needs, long-term dollars spent, as well as feature sets and support that will help the provider through all the years of product deployment. Financial assistance to capital for equipment and/or services from day one should also be a consideration for any new investment.