Discussion
Consider the following statements about total cost of ownership.
1. Staff time spent operating hardware is a genuine cost.
2. The hardware refresh cycle must be amortised into the comparison.
3. The cloud invoice compares directly with the server purchase price.
Answer: C
The first two are correct and are the items most often left out. The third is the flawed comparison itself, since one figure is a recurring service charge and the other a one-off capital purchase. Amortising the purchase over its useful life is the least a fair comparison requires.
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