| Vol. 3, No. 8 : September 10, 2002 |
CIOview eUpdate
TCOnow! for Web Application Development
Web Application Development: Release the Host
Providing web access to your host systems can have substantial business benefits, but at what cost to your IT resources? Web Application Development has suddenly caught the attention of CFO's and CIO's across America. The thought of leveraging all those person-years of host development seems like an attractive financial proposition. However, before embarking on a project with such serious ramifications it is critical to understand what the costs of the different approaches are. Which applications should you web-enable first? Are the optional tools really worth the money? What factors will affect the resources and time required to complete your different web development initiatives?
CIOview is excited to announce a new member of its TCOnow! family of products designed explicitly to address these issues. TCOnow! for Web Application Development provides a side-by-side cost comparison of the most popular development options. As a result, the analysis highlights:
- Regardless of the development tools or environment used, customers generally have three development approaches available to them: build a new Java model, build a new legacy model or leverage an existing legacy model. The economic implications of each approach are quite unique.
- The complexity traits of the business application that you select to automate (such as Online Shopping or Online Banking) will have a significant impact on the development effort required.
- The complexity of your existing legacy application environment will also be a major driver for determining which development environment is optimal and which tools you should select.
- The number of concurrent users and the level of security required is also a powerful force in your endeavor.
- The number of developers you have available for your web-based development effort in combination with their skill set i.e. C++, Java, or COBOL will also have a large impact on your project costs.
- Finally, the opportunity cost of not having the web-based application may ultimately be your largest cost and therefore deserves particular attention.
Development Decisions
How do you decide which languages you will primarily use for your business model development; your application controller layer; and your application APIs and user interface layer? These are key development decisions that will affect your total cost.
Final Analysis
It is only after all of these elements are given due consideration that a realistic estimate of resources, time and effort can even begin to be developed into a business case.
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4TCOnow! for Web Application Development
4ROInow! for Business Integration
4ROInow! for WebSphere Portals
4ROInow! for WebSphere Commerce
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more info? |
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8TCOnow! for Windows Application Consolidation
8TCOnow for Distributed Datacenters |
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Q U E S T I O N OF THE W E E K
What is the cost of the capital and how is it used?
The cost of capital is simply the cost of money that would be required to finance a project. This number is different for each company. In CIOview's tools we ask you for the industry that you are in and we then determine a default cost of capital that you can change at a later stage of the analysis. Most companies' cost of capital is currently somewhere between 5 and 10%. In the case of calculating Return on Investment, since some of the benefits are two to five years out, these have to be discounted into today's monetary terms. In other words you take each year's benefits and discount that amount back into present day values. This is done by using a discount rate which is different for each year but incorporates the cost of capital.
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All contents are Copyright © 2005 CIOview Corp. All rights reserved. Patents pending. CIOview® and ROInow!® are registered trademarks, and TCOnow!, SecurityNOW!, Simplifying IT Purchasing, Business Value Library, CompareITnow, Real-Time TCO, and Real-Time ROI are trademarks of CIOview Corp. Disclaimer: This information is provided to you as a tool "as is" with the understanding that there are no representations or warranties of any kind either express or implied. CIOview disclaims all warranties including, but not limited to, implied warranties of merchantability or fitness for a particular purpose. More information. |