The New Approach to TCO for Digital Commerce

The New Approach to TCO for Digital Commerce

by commercetools, Google Cloud and MACH Alliance

The New Approach to TCO for Digital Commerce

About the Booklet

Why modern, composable solutions are more cost-effective than legacy, monolithic platforms

One of the key decisions organizations face in commerce is choosing between monolithic and composable solutions. TCO (total cost of ownership) is often used as the key metric to compare the cost of these two solutions. However, the traditional way of calculating TCO is not adequate to evaluate the real costs associated with keeping up with constant change.  

The purpose of this eBook, co-authored by experts at commercetools, Google Cloud and the MACH Alliance, is to help business leaders to objectively analyze and compare all the costs of both architectures while introducing a better methodology for calculating a more accurate TCO.

While TCO is an important metric, it can miss key cost-drivers that have the greatest impact on business outcomes. This eBook explores the importance of two additional metrics: TCC (total cost of change) and TSP (total spend productivity), and how they can provide a more comprehensive understanding of the cost related to a composable solution versus a monolithic solution in the context of today’s digital commerce.

Key Takeaways

  • Traditional TCO calculations do not cater for today's fast-changing reality.

  • Why Total Cost of Change (TCC) and Total Spend Productivity (TSP) should be evaluated.

  • How technical debt from monolithic solutions negatively impact your business.

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