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Total Cost of Ownership

Use the Total Cost of Ownership tool below to compare costs between two student information systems.

Total Cost of Ownership Analysis

What Is TCO Analysis For?

A total cost of ownership (TCO) analysis reveals the direct and indirect cost of an automated system, such as a student information system, over a period of time.  Direct costs include the purchase of computer hardware, software, network access, services fees, maintenance, depreciation, and disposal.  Indirect costs include less tangible items such as staff support, training, and business continuity.  Indirect costs are often overlooked and can sometimes add up to more than the direct costs of a system.  Comparing the total cost of ownership for two similar systems can help buyers choose the system that best fits their budget.

TEA's Total Cost of Ownership (TCO) Workbook

TEA's TCO workbook steps local education agency (LEA--Texas school district and charter school) staff through allocating direct and indirect costs of their current SIS and automatically compares these to both of the State-sponsored Student Information Systems (SSISs), Skyward and TCC TxEIS. The workbook benefited from input from the Texas Association of School Board Officials (TASBO) and was tested and refined during several site visits to individual districts. Use the workbook to make a quick estimate of costs, or work with your business staff to perform a more detailed and precise analysis.

Watch the TCO webinar for a quick guide to using the workbook.

Background:  The SSIS

TEA collects a large amount of data concerning Texas students, teachers, schools and school finance.  A variety of TEA program areas use the data to measure compliance with state and federal requirements.  Many stakeholders outside the agency also view the data, and LEAs use the data for their own evaluation and decision-making activities.

Managing and submitting this data is a significant effort for LEAs.  To reduce the financial burden and provide more robust functionality, TEA has entered into agreements with two vendors to offer options for a SSIS as part of the Texas Student Data System (TSDS) effort.  The systems are available to LEAs at an attractive cost, with assured vendor support for state and local needs.  The SSIS offers LEAs (on a voluntary basis) a single state-of-the-art SIS solution that can satisfy LEA needs at a reduced cost while simultaneously supporting state reporting needs. 

TEA encourages LEAs to use the TCO workbook to find out if a SSIS would offer them better value than their current system.  TEA's goal is to help LEAs get more functionality at a lower cost--whether they choose a SSIS or not!


If you don't have Winzip and Adobe Reader, you will need them to use the TCO: