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The Total Cost of Ownership |
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The TCO of each
computer in an organization consists of four elements.
I. IT M ANAGEMENT
AND TECHNICAL
SUPPORT
- 62%
Computer workstations require an
operating system or "OS" like Windows XP. Hackers frequently target
vulnerabilitiesfound in the OS and the applications that run on the OS. To
stay ahead of the vulnerabilities and prevent costly downtime to a
business, the software must be frequently updated. Proper updating
requires in depth knowledge of the OS, the applications and the
environments involved. Since the introduction of Windows 2000 OS,
Microsoft has published over 500 updates. Administrators who deploy
updates also deal with version control, remote administration, system
configurations, data replication, backups, hardwaremaintenance, security,
anti-virus, and network administration. Technical support costs include
the labor, system and software of help desks, support contracts, IT staff
and end-user training, and IT-related procurement. These combined
activities of IT Management and Tech Support translate into at least
$3,100 per year for every Windows desktop. That equates to $258 per month. |
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Data from the Gartner Group indicates
that a co-op based solution can cut desktop technical support costs by 25%
and administration costs by nearly 60%. |
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II. D OWN
TIME
- 23%
Downtime occurs when applications, systems, or networks go offline for
planned or unplanned situations. The costs associated with downtime can
range from minor inconveniences to millions of dollars for every minute.
If disaster strikes and a business must rebuild it's computer
infrastructure the expense and loss of opportunity can be staggering. |
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True high availability
is very costly. A co-op based system contains the necessary infrastructure
to minimize downtime. |
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III. H ARDWARE AND
SOFTWARE
- 9%
Up-front capital costs are only one consideration. Later costs of
upgrading processor, memory, storage and connectivity hardware can well
exceed the initial acquisition cost. Zona Research concluded that, "Over a
five-year cycle, total anticipated hardware upgrade costs of each pc in a
15-user network exceeds the initial purchase costs of the PC.". |
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Applications reside and
execute 100 percent at the co-op, therefore co-op based computing provides
a means by which companies can leverage the existing investment in
hardware and software without rewriting code or adjusting client
configurations. |
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IV. E
ND-USER
IT
AND
RELATED
COSTS
- 6%
While PCs provide end users with
the applications they need, they also increase the technical burden on
end-users. This includes the inefficiencies of end users supporting
themselves and their peers instead of relying on IT support and focusing
on their jobs. |
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Management of
complicated and time consuming tasks is all handled by the co-op. The end
result is a one-third reduction of end-user IT costs. |
