Application Lifecycle – Total Cost of Ownership



What is your TCO for building and running your applications?

How much of your budget are you spending just to keep the light on?

What percentage of your investment (time and money) is creating new value Vs dealing with your legacy systems?


Do you know that the annual enhancement cost is 17 cents for every $1 dollar spent developing an application.
An order-of-magnitude estimate of total annual ongoing costs of applications is 30% of the development costs.
So when  you take a look at this and take the average age of applications which is a little over 8 years.
You can see the total cost of ownership is $2.24 for every $1 of development cost – over the life of an application,
(17cents x 8years + 11cents X 8 years = $2.24)

So you spend 224% of the development cost just to keep the application running. How can you better control this cost and align your budget to your business's needs and not just to keep a Status Quo on your current apps ? ... oups, this is the first pillard of the Microsoft Application Lifecycle Management vision ....

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