To keep up with the new wave of technology in schools, school districts are purchasing technology like a fast roller coaster. However, it is vital that superintendents understand what the equipment will really cost in the long run. When evaluating the technology for the course management software (CMS), the issue of cost is not the only issue that districts have to consider. Considering the hidden technology costs can essentially assist with reducing redundant expenditures.
Purchasing CMS software may be an obvious task from the principals’ perspectives; however, there is a bigger picture to consider when purchasing software. There are other hidden costs that should be considered such as the costs of maintenance and support, and end users’ training. Including these costs is the idea of Total Cost of Ownership (TCO). Gartner (n.d.), defines “TCO as the total cost of using and maintaining an IT investment over time. TCO calculations include a combination of direct costs (hardware, software, operations and administration) and indirect costs (end-user operations and downtime). TCO is often overlooked, and unbudgeted, presenting an inaccurate IT spending analysis”. …show more content…
Nonetheless, the acquisition cost commonly represents only a portion of the TCO. Maintenance cost is also a portion of the TCO, who will monitor and/or upkeep the software? User end professional development costs, who will have to be trained? Upgrade costs, how often will the software needs to be upgraded? These additional costs are also parts of the TCO and should be considered during the evaluation
Purchasing CMS software may be an obvious task from the principals’ perspectives; however, there is a bigger picture to consider when purchasing software. There are other hidden costs that should be considered such as the costs of maintenance and support, and end users’ training. Including these costs is the idea of Total Cost of Ownership (TCO). Gartner (n.d.), defines “TCO as the total cost of using and maintaining an IT investment over time. TCO calculations include a combination of direct costs (hardware, software, operations and administration) and indirect costs (end-user operations and downtime). TCO is often overlooked, and unbudgeted, presenting an inaccurate IT spending analysis”. …show more content…
Nonetheless, the acquisition cost commonly represents only a portion of the TCO. Maintenance cost is also a portion of the TCO, who will monitor and/or upkeep the software? User end professional development costs, who will have to be trained? Upgrade costs, how often will the software needs to be upgraded? These additional costs are also parts of the TCO and should be considered during the evaluation