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Cost and Risk Factors for the TDM
Risk Factors Cost Factors On Premise/Customer Provided Cloud Service
• Investment / Budget • Less initial investment
• Achieving financial returns – ROI, Pay Back • Potential greater long term costs but offset by only
• Support contracts (+ increases)
• Technology/Hardware refresh – EOL 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 control)
• Coverage – remote sites • Hidden costs
• Supplier management (multi-vendor) • Price increases
• Business Continuity/Resilience (DR)
• Helpdesk
• Developing new services
• 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
