How to Calculate Your Total Cost of IT Ownership

When a practice begins evaluating cloud providers like Netgain, we’ve found that often times they haven’t yet identified their total cost of IT ownership. This makes it difficult to accurately compare their in-house IT infrastructure against the cloud. Further, we’ve found that if they have calculated their total cost of ownership (TCO) for their IT, they’ve almost always left out some significant factors.

To help practices understand how the cloud truly compares against their current environment, we’ve created a Total Cost of Ownership Guide, based on our decade-plus of cloud experience working with hundreds of healthcare and financial organizations nationwide.

The TCO Guide provides you with the resources necessary to gather all the information you’ll need and the tools required to calculate your practice’s current and future costs.

Industry Comparisons

It’s always good to know your number, but it’s even better to know where you stand in the industry. Are you spending an inordinate amount on IT, are your IT costs confusingly low compared to the industry, or are you spot on with what the industry is spending per user? This guide will help you see how you stack up.

Calculating your IT Cost

The bulk of our TCO Guide explores how to calculate your IT cost, which investments you should factor in and how your organization’s future plans should affect your total cost of ownership. We discuss things like:

  • The types of changes that drive your IT costs.
  • Technology upgrades, updates and refreshes – when they should be done and what to consider before upgrading.
  • Opportunity costs – what’s at stake if your organization doesn’t make the necessary upgrades and updates?
  • Right-sizing your environment – optimize your performance and minimize your cost.
  • Planning for the future – roadmap your future plans including new technologies, organization growth and industry forces.


After you calculate your organization’s total cost of IT ownership, the next natural question is: what are the alternatives? In our guide, we explore cloud computing as an alternative to building your infrastructure empire in-house. We even use a real-life cost comparison to show how the cloud can save an organization money over time.

Tools and Resources

There’s no use reinventing the wheel. Our guide includes the spreadsheets and calculators you need to prove your case and show your work. Go ahead, put your organization’s logo on it and take all the credit when you show it to your board – we don’t mind!

Click here to download our Total Cost of IT Ownership Guide so your organization can get a true understanding of your IT costs and how to optimize your IT investments.

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