The New Approach to TCO Booklet

The New Approach to TCO for Digital Commerce

by Sven van Hegelsom and Tom Jones in partnership with Google Cloud


About the Booklet

Why modern, composable solutions are more cost-effective than legacy, monolithic platforms

One of the key decisions organizations face is choosing between monolithic and composable solutions. TCO (total cost of ownership) is often used as the key metric to compare the cost of these two solutions. However, the ongoing costs associated with adapting to a changing environment are not adequately covered by the traditional way of calculating the TCO. The purpose of this eBook is to help business leaders to objectively analyze and compare all the costs of both architectures while introducing a better methodology for calculating a more accurate TCO.

While TCO is an important metric, it can miss key cost-drivers that have the greatest impact on business outcomes. This e-book explores the importance of two additional metrics: TCC (total cost of change) and TSP (total spend productivity), and how they can provide a more comprehensive understanding of the cost related to a composable solution versus a monolithic solution in the context of today’s reality.

Key Takeaways

  • Traditional TCO calculations do not cater for today's fast changing reality.

  • Total Cost of Change (TCC) and Total Spend Productivity (TSP) should be evaluated.

  • Technical debt from monolithic solutions negatively impact your business.


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