Total Cost of Ownership (TCO) Assessment
The Office of Financial Management (OFM) has identified and assessed the total cost of common information technology infrastructure and application services used for government business during the fiscal year that concluded June 30, 2011.
Thirty-nine executive departments and offices completed a cost-allocation exercise under (consultant) Gartner’s direction to report what they spent for hardware, software, personnel, transmission, connectivity, disaster recovery and occupancy related to information technology. This enables OFM and directors to look across differently configured agencies at how basic infrastructure services, computing environments and products are exercised by agencies. This study includes a first-time look at their fully-burdened, localized cost to develop and support business applications.
Knowing TCO helps any organization optimize costs. OFM pursued this industry-tested framework, and expenditure baseline to approximate and measure productive change the State is making concerning information technology. Gartner has a deep research basis for IT infrastructure and application assessment modules agencies used. Results are illustrated in the presentation links below. OFM hired Gartner to convey its know-how to analysts as well as business specialists and information technologists working for state government.
- Statement from OFM on Study Findings and Next Steps (downloadable PDF)
- Gartner Consulting Report (downloadable Power Point slide deck)
- Supporting Data Table: Infrastructure Profiles Contrasted to Peer Group (Excel read only workbook)
- Supporting Data Table: Application Profiles Contrasted to Peer Group (Excel read only workbook)
- Gartner Overview and September Kickoff
- Personnel Allocation Worksheet for Agencies
- Infrastructure Workbook for Agencies
- Gartner Reference Material for Infrastructure Modules
- Visualize Infrastructure @ School of Gartner
- Reporting the occupancy cost (rate) for general purpose State offices
See table on page 10 of the linked OFM Report entitled “Cost of Leased Facilities (Rent and Services)”
- Applications Workbook for Agencies
- Gartner Reference Material for Applications Module
- Gartner Applications Breakout Session
- Gartner’s Primary TCO Metrics
- Frequently asked questions - Updated 12/06/11
Gartner trained agencies’ core teams over three business days in September of 2011. For more information about the kickoff sessions, write to OFM’s first point of contact.
OFM took questions from agencies as they proceed to complete workbooks and forwarded those to Gartner’s attention when needed. Specific questions were taken up and discussed live with TCO support team that included our Gartner analysts then posted here to guide work by agencies. Further help with TCO materials is provided by writing to: firstname.lastname@example.org
Karen Barrett, Office of the State CIO
Suite 300 General Administration Building
210 11th Avenue SW / Post Office Box 43113
Olympia, Washington 98504-1027