I'm not going to take sides on the whole MS Office vs Open Office
argument. I'm just going to whine about people misusing terms.
On Apr 9, 2004, at 1:49 PM, Steven Buehler wrote:
> [costs of various MS products deleted]
> And Micro$chmuck thinks they have a better ROI? Which is better ROI --
> $1,088
> (which would be the cost of the above plus 7% Sales Tax) or $45?
You're comparing purchase costs, not Return on Investment (ROI). ROI
is much more complex than just the purchase cost.
ROI is an estimate of the savings, or additional income, that will be
derived over a particular period of time by investing in a new widget;
or, looking backwards, it can be the actual savings or additional
income derived from a prior investment. If you're estimating ROI, you
pick a timeframe, and add up all the savings or increased income you
expect from deploying the new widget, then subtract all the costs
associated with purchasing and deploying that widget (purchase,
maintenance, internal support, training, for the widget and any
supporting widgets). At the end, you should have a positive number.
You can do the same calculation for multiple widgets, then choose the
widget with the highest return.
Comparing purchase costs is also not the same as calculating TCO (Total
Cost of Ownership), which again includes all the associated costs.
Scotty
-- Scotty Logan <scotty@scottylogan.com> Never take life seriously - Nobody gets out alive anyway----------------------------------------------------------------------- This list is provided as an unmoderated internet service by Networked Knowledge Systems (NKS). Views and opinions expressed in messages posted are those of the author and do not necessarily reflect the official policy or position of NKS or any of its employees.
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