SQL Server 2000 Consolidation: a business case

Table 2, below, summarizes the typical TCO expenses for a SQL Server database environment over a
3-year period.
Table 2. SQL Server environment—3-year TCO summary
Application Type Cost SQL Server Percentage of Total TCO
Ongoing operations $511,928 55.41
Design and development $158,381 17.14
Software licensing $75,000 8.12
Hardware $101,500 10.99
Maintenance $64,500 6.98
Training $12,627 1.37
Cross-organizational
applications
Total TCO
$923,936
Ongoing operations $209,411 67.39
Design and development $37,474 12.06
Software licensing $15,000 4.83
Hardware $34,300 11.04
Maintenance $12,900 4.15
Training $1,681 0.54
Departmental applications
Total TCO
$310,766
Source: Strategic IT Initiatives: TCO Benefits of SQL Server (www.nervewire.com)
As shown in the table above, hardware cost accounts for approximately 11% of the 3-year TCO total,
whereas ongoing operations cost accounts for between 55% and 67%. In addition to ongoing
operations cost, maintenance costs and the added overhead of having to monitor and tune the
complex environment should be included. Figure 2 shows the ongoing activity costs for the same 3-
year period.
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