The Wheelbarrow of Cash

Cost Analysis does not turn anyone's crank. The word itself is dry and flat.

Most people don't realize that Cost Analysis is not only a necessary evil, but it's also seldom done correctly.

The best justification for an expenditure is that it sits smack in the middle of the needs pyramid: it's cheap, it can be done fast, and it can be done right.

The worst justification for an expenditure is the phrase, "Because we've always done it this way."

Either way, the most important question to ask yourself is, "Do we really need it?"

If you're renewing licenses that don't help you, or you're paying contracts that barely meet your needs, it's time to look elsewhere. The looking costs time and money too, but in the end, cost analysis is all about ROI. And ROI is never a one-time snapshot: it's an ongoing look at what you're getting back for your commitment.