The TCO of Web Analytics Solutions, Part 1
Calculating the total cost of owning a Web analytics solution. Part one of a two-part series.
Calculating the total cost of owning a Web analytics solution. Part one of a two-part series.
Last week, I was talking with one of my partners — who also co-owns a boat with me — about the TCO (define) of a Web analytics operation. Many of our clients are unhappy with their Web channel analyses. They tend to blame their software. As we examine their operations, we usually find they didn’t fully understand what they were getting into when they bought their “solutions.” As a result, they’re paying more and getting less than they expected.
My partner pointed out that owning Web analytics software is a lot like owning a boat. Neither is overly expensive to acquire. But the TCO is much higher than the sticker price. You can buy a boat for a relatively reasonable amount, but keeping it afloat is another matter entirely. There are fuel costs, dock fees, maintenance, and off-season storage. Not to mention the fact most of your friends think your boat automatically comes stocked with beer. The total cost of owning a boat for just a few years can often be double what you originally paid.
With boats, the TCO problem is well known. There are even jokes about it. One of my favorites says the best day of a man’s life is when he gets his first boat, and the second best is when he gets rid of it. But with Web analysis software, the problem is less recognized. Behind each solution there are extra costs. They aren’t exactly hidden, but unless you know about them you’ll be financially blindsided down the road.
How do you calculate the TCO when buying a Web analytics solution? It’s not too difficult. There are two parts to your added costs: technological, and internal and external services. Technology costs come in a variety of categories, and though they’re not usually as severe as services, they still can wreak havoc with your budget.
Here are the four major issues you’ll encounter with technology:
Next: how internal and external services can affect your TCO and a handy list of ways to anticipate your TCO when buying a Web analytics software solution.
If you’ve had a success (or horror) story with your Web analysis TCO, email me the issues you encountered. I may include your story in a future column.