Understanding the Real Cost of an IT Management Product

Just read a very interesting research report from Gartner. This research report titled “Understanding the Real Cost of an IT Management Product” was published last year.

This report lays down the various costs that need to be considered when choosing a monitoring solution. These include:
• License costs
• Maintenance costs
• Planning costs
• Training costs
• Implementation costs
• Customization costs
• Ongoing administration costs
• Retirement costs

This list should not be a great surprise to you. We at eG Innovations always ask our clients to look at the real total cost of ownership (TCO) of a monitoring solution.

The report goes on to corroborate what we’ve been saying for years now – “Even though implementation costs will vary depending on the vendor and product complexity, we typically find that implementation costs can be three to five times the cost of purchasing the product, and Gartner has seen cases where it is seven to eight times the purchase price.

Gartner’s take on open-source/free products – “Products available for free (such as open source), or those that are a “same cost” swap out, can cost more during a three- to five-year period than a first-time commercial purchase costing thousands of dollars.

Gartner’s recommendations for folks looking to buy or even looking to see if they need to renew maintenance on their current monitoring product:

– To control costs, look for a product that is easy to use and has the majority of the functionality you need out of the box.

– Reduce operating license costs by purchasing products that are easy to implement and require minimal customization.

Given the current economic times, more than ever before, companies are looking critically at whether they need to retain their current monitoring solution, which they purchased several years ago, or whether they switch to a new-age solution that is much easier to implement and use. Often, the pain involved in switching solutions is the first point considered. Gartner’s advise to clients is “Undertake management investments using some estimate of the operation life cycle costs, with a time horizon of three to five years.

I would say this holds true whether you are purchasing a brand new solution, or you are looking at replacing your current monitoring solution. Don’t look for band-aid, you are only delaying the inevitable. At least be proactive and start to evaluate what would be the right solution for your current infrastructure, given how your infrastructure has evolved over the years and the number of new technologies that have come in.

Just found this report on the web here. Be sure to check it out. It’s an excellent read!


If you are interested, check out this white paper (titled eG Enterprise vs. a Big 4 Monitoring Solution: Comparing Total Cost of Ownership) that we wrote recently comparing the huge difference in TCO between deploying a behemoth, old-age monitoring and management framework like one of the Big-4 vendors and a nimble, easy to use, all-in-one product suite like eG Enterprise.

Until next time …