Design principles for cost optimization

Cost optimization includes increasing business value and minimizing risk while reducing the cost of running a business. You need to plan by estimating the budget and forecasting expenditure. To realize cost gain, you need to implement a cost-saving plan and closely monitor your expenditure.

You can follow several principles that help you achieve cost optimization. The following sections talk about the common design principles that allow you to optimize cost. You will find that all cost optimization design principles are closely related and complement each other.

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, in the long run, the TCO matters the most. The TCO includes both CapEx and operational expenditure (OpEx...