Saugatuck Technology Releases Special Report: “A Framework for Cloud IT: Total Cost of Ownership”

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Guidance, models and myth-busters provided

Buyers who understand TCO and their own operating costs will be best positioned to make sound decisions on Cloud IT solutions.

The first questions about Cloud IT – “What is it?’ and “What does it mean to me?” – have largely been answered. The question now is “How much does it really cost?” Saugatuck Technology addresses this question and the misunderstandings associated with it in its latest Cloud Leadership Report, "A Framework for Cloud IT: Total Cost of Ownership" (TCO), released today.

The 16-page report provides a framework for Cloud IT TCO, delivered with guidance and models to help enterprise buyers better understand their true operating costs, and to help them make informed purchase decisions relative to new Cloud IT investments. Copies of "A Framework for Cloud IT: Total Cost of Ownership", are available to the media upon request, and to businesses and public sector enterprises on the Saugatuck website. Ongoing subscribers to Saugatuck’s Cloud Leadership Strategies research service can access the report here.

Representative highlights of TCO illustrations and tools provided in the report include:

  •     Cloud IT EcoStack TM
  •     Capital, Labor, Fee Ratio Chart by Architecture – Mainframe, Distributed, Cloud
  •     Cloud IT Chart of Accounts
  •     Best Practices for Decreasing Cloud IT TCO
  •     8 Most Common Cloud IT TCO Myths and Legends

“Buyers who understand TCO and their own operating costs will be best positioned to make sound decisions on Cloud IT solutions. Those who don’t may make erroneous assumptions about Cloud IT based on marketing tools presented by Cloud and traditional IT providers,” shared Bill Kirwin, Saugatuck Technology Advisory Board Member and ongoing contributing analyst.

“Total Cost of Ownership is a time-tested methodology and framework by which IT systems can be assessed – and therefore better managed. Even with the shift to a services-led IT architecture, the fundamental elements of TCO do not change with the advent of Cloud IT. The basic model has remained stable for 25 years and continues to be highly relevant,” added Bruce Guptill, SVP and Head of Research. “We are delighted that Bill Kirwin, the ‘father of IT TCO’, was able to lead the development of this strategic report.”

About Saugatuck Technology
Saugatuck Technology, Inc., provides subscription research and management consulting services focused on the key market trends and disruptive technologies driving change in enterprise IT, including Software-as-a-Service (SaaS), Cloud Infrastructure, Social Computing, Mobility and Advanced Analytics, among others. Founded in 1999, Saugatuck is headquartered in Westport, CT, with offices in Falmouth, MA, Santa Clara, CA and in Frankfurt, Germany. For more information, please visit or call +1.203.454.3900.


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Chris MacGregor
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