The TCO methodology has been a valuable IT tool and is widely practiced by all of our largest enterprises. After decades of IT acceptance the vendor community has naturally adapted to this global-acceptance TCO scenario to maximize profitability. The crux of this closed architecture subject is in the single vendor procurement expression driven globally by the TCO methodology.

When open architecture standards do not exist for a component TCO dictates the acceptance of a single vendor as the standard. For decades this has worked well to the benefit of the enterprise and the global infrastructure. However now, we can see two scenarios arising. First, many components of our global infrastructure are doing just fine with this practice. Conversely,  after decades of usage we can clearly see closed architecture attributes beginning to reemerge for the microprocessor.

First, we must understand what controls the open architecture values that flow globally for the microprocessor. In the following slide we depict the global manufacturing pipeline of the microprocessor, at its core is the critical, initial  high volume and high dollar mixture, which is driven by the procurement expression from the Fortune 500 enterprise.

In an open architecture several vendors are involved in the core engineering, manufacturing, testing and procurement activities. Now lets understand how this dominance is happening. TCO says name a single vendor for the microprocessor, 1,000 of our largest enterprises comply.

Here is a slide that depicts the single-vendor interaction of the buying process between the IT policy/standards, procurement and the marketplace.

Step 1: Analyst recommended Qtrly Desktop Standards, "Intel".
Step 2: IT policy and standards, "Intel".
Step 3: Procurement Source & Selection, "Intel".
Step 4: IT Desktop Selection Commitee, "Intel"
and so on.

Do we have an alternative ?