---
title: Cost Justifying a Software Management Tool
description: Cost justification of a software management tool requires careful technical, financial and business analysis.
---

[Daymark IT Insights | Cloud, Security, Compliance & AI Blog ](https://www.daymarksi.com/blog)

# [Cost Justifying a Software Management Tool](https://www.daymarksi.com/blog/cost-justifying-a-software-management-tool)

 Written by [Tom Jensen](https://www.daymarksi.com/blog/author/tom-jensen) | Tue, Nov 15, 2016

In my last post, "[Making the Business Case for a New Disk Array](https://www.daymarksi.com/information-technology-navigator-blog/making-the-business-case-for-a-new-disk-array)," I talked about using TCO and ROI to make a decision on whether to replace or upgrade an aging disk array. Now, we’ll look at how to cost justify a new software investment.

**Example:**

- **The Situation: **A business is contemplating investing in a software management tool which will allow them to have a better understanding of their application workloads, infrastructure utilization and know where and when bottlenecks exist within the infrastructure. They also believe that with this technology they can optimize the use of their infrastructure capacity by better balancing workloads to drive higher utilization of capacity and make incremental infrastructure investments where it makes the most sense. The decision makers within the business now have to be convinced that this is a wise investment.

**"The decision makers within the business now have to be convinced that this is a wise investment.”**

- **The Technology Decision: ** 
    - The business researches the market leaders in this management space, performs multiple Proof of Concept (POC) exercises with the vendors and whittles the list down to two or three options. Each of the vendor’s solutions meets the technical needs of the business even though, as with any technology evaluation, each vendor has specific strengths and weaknesses.

- **The Financial Analysis: **

**“This is why the five-year TCO analysis is important rather than just looking at the year-one costs.”**

- **Discussion Points:**

In my next blog, I'll talk about cost justifcation for a data protection service.

[View full post](https://www.daymarksi.com/blog/cost-justifying-a-software-management-tool)

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