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Cost and Risk Factors for the TDM

              On Premise/Customer Provided                   Cloud Service

Cost Factors  • Investment / Budget                          • Less initial investment
              • Achieving financial returns – ROI, Pay Back  • Potential greater long term costs but offset by
              • Support contracts (+ increases)
              • Technology/Hardware refresh – EOL               only using what pay for
              • Software updates and management              • Opex vs. Capex
              • Staffing (including Contractors)             • Can reduce staff – rely on provider
              • Training                                     • Managing SLAs (incl. reporting, change
              • Coverage – remote sites
              • Supplier management (multi-vendor)              control)
              • Business Continuity/Resilience (DR)          • Hidden costs
              • Helpdesk                                     • Price increases
              • Developing new services

Risk Factors  • Retaining Staff                              • Less risk because supplier is on hook to deliver
              • People security – trust (contractors)        • Single supplier
              • Lack of necessary skills                     • Supplier stability
              • Technology Obsolesce                         • Provider expertise/capability
              • Restricted functionality                     • SP lock in
              • Interoperability                             • Reduced control, Less flexibility
                                                             • Data Security
              • Full risk is on Customer to implement        • Internal Redundancies
              • Not using full capabilities of the system
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