How far will my IT budget go? This is a question that plagues every IT executive and manager – and rightly so. As companies try to do more with less and seek to squeeze extra productivity out of every dollar spent, IT expenditure is often under the spotlight. Tripod helps companies address this question through its solutions and services.

In most companies IT budgets comprise of some or all the following items:

	Infrastructure: Systems, networks, database and file storage, desktops and laptops, communications equipment, and security systems
	Application Software: Commercial off the Shelf (COTS), Custom Built, and Customized Packaged Software
	Database Software and Storage
	Personnel Costs

Constant commoditization of infrastructure elements means the cost savings achieved here are a direct result of the features desired. Commonly available features have ever lowering price points, but more esoteric infrastructure features demand a higher price.

While the case for commercial off the shelf software (COTS) and databases is not much different from the above, custom developed software, which includes application software and software used to integration applications, works under a whole different set of rules. Costs are more influenced by the execution of the project itself rather than by inherent price differences based on technology or application features.

Personnel costs include costs related to IT infrastructure, database, help desk and application maintenance and costs related to new application development. The former is more predictable while the latter is directly related to the choice of architecture and the quality of project execution.

Tripod's Approach to IT Investment

By addressing both the direct costs – personnel, licensing etc., and indirect costs – project overruns and errors, Tripod reduces the total cost of ownership (TCO) of custom application development. Here is how we do it for each major area in a custom development project:

	Requirements Definition: Tripod follows an iterative, prototype driven approach to elicit, document and validate requirements. This process keeps users involved in the process of developing and communicating the vision of the solution to every project stakeholder, thus reducing errors while building buy-in from all involved
	Architecture Selection: Tripod recommends the use of a standards based extensible architecture such as Service Oriented Architecture for enterprise applications. This ensures easy integration between existing and future applications, while allowing for maximum component reuse across the enterprise
	Software Licensing: Tripod recommends the use of mature open source software solutions where applicable to reduce and eliminate software licensing costs. For example, Tripod’s partnership with JBoss, Inc., allows it to deliver on the promise of Professional Open Source™ to its customers
	Development: Given that a significant amount of the personnel related cost in a custom application development project is tied to this activity, economies of development can have a significant impact on the cost of the project. Tripod’s offshore application development capability provides savings multiples while ensuring a high quality deliverable
	Maintenance and Support: Tripod's Professional Application Maintenance services mitigate the risk of post deployment problems to reduce the operational costs involved in owning an application
	Personnel: Tripod consultants are experienced and often certified in the technologies or expertise they provide. Their involvement in any project reduces the need for rework, reduces errors and hence, significantly reduces the personnel cost involved in custom application development
	Project Management:Tripod uses experienced project managers whose project management practices build upon Tripod’s software development life cycle (SDLC) process to ensure that projects are completed on time and within budget

While the factors listed above are applicable across industry segments and company (and project team) sizes, the weighting of individual factors to the overall savings will vary from company to company and project to project. Tripod evaluates all these criteria when selecting the right components of a solution to address a specific situation.

To learn more about how Tripod can help you reduce your TCO of custom developed software and stretch your IT budget, call (856) 755-1478 x106 or click here.