Australian Government Architecture Reference Models Version 3.0

Measurement Area Rationale Defined by
[5301]
Cost (technology)
Technology cost is a key
determinant in assessing the
performance of technology
investments and, through such
assessments, of the overall
performance of an agency in
realising effective outcomes for
government in an efficient
manner.
Technology cost is a
multivariate attribute.
Understanding the full cost of
technology requires measuring
the costs associated with
acquiring the technology,
sustaining the technology,
operating the technology and
disposing of the technology.
A. Acquisition
Quantitative measures of the non-labour attributable
financial costs associated with the procurement of
technology within an agency. Those costs include, but
may not be limited to:
� the purchase price of hardware
� licensing costs for software
� fee-for-service costs attributable to the acquisition
of a technology capability.
B. Sustainment
Quantitative measures of the non-labour-based
financial costs attributable to the maintenance of
technologies. Costs recorded within this grouping may
include, but are not limited to:
� outsourcing contracts for the support and
maintenance of technology
� fee-for-service costs attributable to the
maintenance of a technology capability
� costs associated with the replacement of faulty
technology subcomponents, such as a hard drive
within a server
cleaning and servicing costs for major office machines.
C. Operation
Quantitative measures of the non-labour financial costs
incurred by an agency that are attributable to the
operation of technology within the agency.
Measurements within this grouping may include, but
are not limited to:
� proportion of electrical costs attributable to a
technology
� proportion of mechanical costs attributable to a
technology (for example, air-conditioning)
� value of the floor space occupied by piece of
technology in a data centre facility.
D. Disposal
Quantitative measures of the non-labour financial costs
incurred by an agency when a piece of technology is
decommissioned and disposed of. Measurement
indicators within this grouping may include, but are not
limited to:
� early termination penalties for support contracts
� data cleansing fees
� commissions payable to auctioneers.
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