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Measuring the TCO of Tape Storage Solutions
This tutorial presents a framework and financial methodology for deciding whether an enterprise should replace its current "status quo" tape storage solution with a new "proposed" solution, and the economics related to that decision. The framework and methodology are explained by following an illustrative business case from beginning to end. Each of the value drivers that contribute to the cost of the status quo and proposed tape storage solutions are analyzed in this illustrative business case. Aggregate analysis of the value drivers is then used to calculate the discounted total cost of ownership (TCO) savings, which is the difference in TCO between the status quo and proposed solutions. Finally, additional financial measures further evaluate whether it is in the enterprise’s financial interest to replace the status quo solution with a proposed tape storage solution.