Total Cost of Ownership (TCO) Analysis Template
Published on: December 10, 2024
Summary
This template helps procurement teams calculate and compare the total cost of ownership (TCO) for different software solutions. TCO includes all costs associated with acquiring, implementing, and maintaining the software over its lifecycle.
Section 1: General Information
Software Name: ____________________________
Vendor: _________________________________
Evaluator Name: ___________________________
Date of Analysis: _________________________
Section 2: Cost Categories
Use this table to itemize and calculate costs for each solution. Add rows as needed.
1. Acquisition Costs
| Item | Cost ($) | Notes |
|---|---|---|
Licensing fees | ||
Initial subscription fees | ||
One-time purchase fees | ||
Vendor onboarding fees | ||
Other acquisition costs |
Total Acquisition Costs: $____________________
2. Implementation Costs
| Item | Cost ($) | Notes |
|---|---|---|
Installation and setup fees | ||
Configuration/customization | ||
Training costs | ||
Data migration costs | ||
Consulting or support fees | ||
Other implementation costs |
Total Implementation Costs: $____________________
3. Operational Costs
| Item | Annual Cost ($) | Notes |
|---|---|---|
Annual subscription fees | ||
Maintenance and support fees | ||
Cloud hosting costs | ||
Upgrades and updates | ||
Additional user licenses | ||
Other operational costs |
Total Operational Costs (per year): $____________________
4. Indirect Costs
| Item | Cost ($) | Notes |
|---|---|---|
Downtime costs | ||
Productivity loss during transition | ||
Compliance or audit penalties | ||
Other indirect costs |
Total Indirect Costs: $____________________
Section 3: Cost Summary
| Cost Category | Total Cost ($) |
|---|---|
Total Acquisition Costs | |
Total Implementation Costs | |
Total Operational Costs | |
Total Indirect Costs |
Grand Total (TCO): $____________________
Section 4: Comparative Analysis
Use this section to compare TCO for multiple solutions.
| Software Solution | Total TCO ($) | Strengths | Weaknesses |
|---|
Section 5: Decision Summary
Recommended Software: _______________________________
Reason for Recommendation:
Additional Notes:
This template ensures a comprehensive evaluation of all costs associated with a software solution, enabling data-driven procurement decisions. Customize as needed for your specific analysis.
