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Total Cost of Ownership


The figure below is based on the following simple model calculation and shows how much the "Total Cost of Ownership" (TCO) can be reduced:
 
     
Cost factor in $
Classic CMS
Content Automation
Software licence
Project cost (one-time)
Maintenance
Training
Calculated employee costs/day
Number of authors
Documents/day/author
Preparation effort/document in minutes
Workhours
Periods
Use (years)
Expansion cost
80,000
50,000
20% p.a.
1 day p.a., 10% fluctuation
750
50
3
15
1 year = 200 days = 8 hours
Investment period 1, use beginning period 2
5
0
80,000
150,000
20% p.a.
-
750
50
3
0
1 year = 200 days = 8 hours
Investment period 1, use beginning period 2
5
20% project cost p.a.
 
 
Total Cost of Ownership CMS/Content Automation
     
  ·
According to this model the current cost of the CMS is 14 times as much as the current cost of the Content Automation System
  ·
This results in potential savings of more than 2,500.000 EUR
Date: 7/27/2007
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