Design principles for cost optimization

Cost optimization includes increasing business value and minimizing risk while reducing business costs. It would be best if you planned your application costs by estimating the budget and forecasting expenditure. To realize cost savings, you need to implement a cost optimization plan and closely monitor your expenditures.

There are several principles that can help you achieve cost optimization; common design principles for this are covered in the following sections. You will find that all cost optimization design principles are closely related and complement each other. Let’s have a look at these.

Calculating the total cost of ownership

Often, organizations tend to overlook the total cost of ownership (TCO) and decide based on the upfront cost to acquire software and services, known as capital expenditure (CapEx). While the upfront cost determination is essential, the TCO matters the most in the long run. The TCO includes...