Total Cost of Ownership (TCO) in the Atlassian Cloud
What is the Total Cost of Ownership (TCO?)
Total Cost of Ownership (TCO) is a cost accounting approach that allows you to estimate all costs pertaining to an investment. It takes into account the total expenses associated with the acquisition, implementation, and utilization of a product or service over its lifespan. Not just the purchase price is considered here, but also costs for maintenance, training, upgrades, support, etc.
TCO can assist you in making a data-driven decision between Atlassian Cloud and Data Center. In order to make this call, the TCO must be calculated. Here, we have compared the features of these two deployment options.
How to calculate the TCO
1. Current costs of the IT infrastructure
First, one calculates the direct as well as the indirect costs of the current IT infrastructure. These include, but are not limited to:
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Hardware and Infrastructure - This includes servers, resources, spare parts, etc.
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Data Center - What are the current costs of electricity, cooling and occupancy?
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Software - Cost of licenses
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Personal - Cost of personnel necessary to maintain the system
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Maintenance - Operations and third-party maintenance costs
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Upgrades - Cost of upgrading to a newer version
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Security - Complete cost of security both virtual and physical
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Downtime - What is the cost of system downtime?
2. Cost estimation of a Cloud solution
After that we estimate the costs of a cloud solution. Many costs that are incurred on-premise are not present here because Atlassian takes care of them. Costs that are incurred with a cloud solution are:
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Migration costs - Migrating the current system to the cloud has an expense, but is only a one-time expense (see migration packages)
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Monthly or annual costs - Subscription costs vary greatly depending on which cloud plan you choose and what features you require
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Consulting and training costs - If the team lacks the necessary know-how, consulting costs are added
3. Cloud Advantages
The final step is to determine the value gained from the massive benefits of the cloud:
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Innovation - The cloud offers hundreds of different services, apps and integrations. In addition, upgrades are made through Atlassian
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Elasticity - In the event of a peak in demand in the cloud, it is possible to temporarily increase capacity and subsequently decrease it again.
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System occurrences - Downtime can lead to massive costs for the company. Usually, the IT team is responsible for such downtime. Atlassian guarantees 99.95% uptime with the Enterprise version
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Reduction in operating expenses - These costs can be eliminated: IT staff, server support, electricity bills, maintenance, etc.
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Scaling - Charges in the cloud are for the computing power you need
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Added value - Existing employees can focus on adding value to the company
