TCO and ROI are invaluable aids to IT managers trying to make sense of the bewildering range of choices they have to solve an equally bewildering array of challenges. But, as anyone who has ever gone through the calculation exercise knows, TCO and ROI sometimes seem to miss the point. For instance, these calculations may not completely account for the significant contributions that SANs can make in support of businesses in a 24 x 365 marketplace.

Ken Duggan, a senior consultant in Enterprise Storage for Compaq, noticed how customers often struggled with efforts to explain purchase decisions -- and he saw that TCO and ROI didn't always seem to provide the answers.

About a year ago, Duggan says he began to investigate other ways of evaluating technology purchases. The result, a whitepaper, Business Value Methodology in Support of Networked Storage Architectures, suggests that more sophisticated and accurate accounting procedures must be used to supplement TCO/ROI calculations. Networked storage, and the associated tasks and solutions dramatically changed by it, the paper suggests, can be more accurately measured by a business value calculation methodology.

That methodology, devised for Compaq's StorageWorks by ITCentrix, a developer of IT value software, also has wide applicability to any networked storage decision-making, Duggan said. It includes TCO factors plus the real and tangible effect of losing access to the important applications that an organization

Requires Free Membership to View

relies on every business day.

Some of the specifics that the white paper focuses on include the "tax" paid by organizations for LAN-based IT infrastructure additions and unplanned outages per server as well as productivity increases generated by access to a particular application in an organization.


The white paper is available here.

Tip: Writing the book on SAN ROI

Tip: The quest for knowledge, power and ROI

Expert advice: Delivering ROI

Discuss ROI with your peers

  • Alan Earls often writes about things NAS and SAN in his weekly "SAN/NAS Update: Trends" column. View the latest
  • About the author: Alan Earls is a freelance writer in Franklin, MA.

    This was first published in May 2002

    There are Comments. Add yours.

    TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

    REGISTER or login:

    Forgot Password?
    By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
    Sort by: OldestNewest

    Forgot Password?

    No problem! Submit your e-mail address below. We'll send you an email containing your password.

    Your password has been sent to:

    Disclaimer: Our Tips Exchange is a forum for you to share technical advice and expertise with your peers and to learn from other enterprise IT professionals. TechTarget provides the infrastructure to facilitate this sharing of information. However, we cannot guarantee the accuracy or validity of the material submitted. You agree that your use of the Ask The Expert services and your reliance on any questions, answers, information or other materials received through this Web site is at your own risk.