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September 14, 2009

How to Reduce Total Cost of Ownership of Data Integration Software

Filed under: Data Integration, Open Source — Tags: , — Olga Belokurskaya @ 8:07 am

When choosing a data integration solution, it is important to keep in mind a lot of things, the most crucial being that while many companies tend to underestimate the TCO (comprising license fee, hardware costs, and labor costs) of data integration, for every dollar spent on integration software, enterprises spend $6 on subsequent implementation and support. This goes for proprietary software.

Under tough economic conditions for many companies the total cost of ownership of enterprise of proprietary data integration solutions is becoming prohibitive. One may start to think of data integration as of something that constantly consumes enormous resources, both human and financial, and that would make a point. But another point is that to reduce the total cost of ownership, you have to change the cost structure, that’s it:

  • Today that there is a number of open source solutions available for evaluation and real-world projects at no charge. With open source, you can practically eliminate licensing fees at all.
  • As far as hardware costs are concerned, eliminating the vendors whose solutions do not provide the acceptable level of openness can result in a considerable saving.
  • When it comes to labor cost, there are two main criteria.
    • The first of them is whether the solution is straightforward enough for a non-trained user to use, and whether it is effective, which means that the user is able to do the job in minimal time.
    • The second criterion is the flexibility of the product, the extent of reusability of its configuration for follow-on tasks.

    Commonly, open source manages to provide both, oriented on and supported by a large community that aims to consistently enhance the development.

Learn more about how to reduce the total cost of ownership from our “Guide to Reducing Data Integration Costs.”

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