Reducing TCO

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Reducing TCO by Mind Map: Reducing TCO

1. Multi-tenancy efficiency

1.1. Application labor divided over large number of customers

1.1.1. Each customer paying for its own application management

1.1.1.1. Application labor costs per customer towards zero

1.1.1.1.1. Reduction on overall cost, especially for complex applications

2. Demand-side aggregation

2.1. Randomness

2.1.1. Capacity buffers account for a certain probability that many people will undertake particular tasks at the same time.

2.2. Time-of-day patterns

2.2.1. High utilization during daily peaks of the day, low utilization during other parts of the day

2.3. Industry-specific variability

2.3.1. Account for the peaks according to the industry of the customer.

2.4. Multi-resource variability

2.4.1. Fully utilize the server by fitting in more resources

2.5. Uncertain growth patterns

2.5.1. Anticipate demand by planning their purchases ahead of time, diversifying among workloads across multiple customers and also standardizing hardware.

3. Supply-side saving

3.1. Reduce energy cost

3.1.1. Take advantage of geographical variability in electricity rates

3.1.2. 15-20% of TCO is cost of power

3.1.3. Gets bulk purchase agreement

3.2. Only one person is needed to maintain thousands of machines

3.2.1. Opens up the other employees to do other jobs which saves on labor cost