Save your organization money by considering your equipment’s TCO (Total Cost Of Ownership)

When we talk about the cost of a computer with clients, it is common that they only consider the price of the computer. However, this up-front cost is only a small portion of the Total Cost of Ownership (TCO) of the computer. Other costs include setup, software, technical support, repairs, and upgrades.

Without the TCO in mind, most departments purchase their computers individually without considering the additional costs incurred to the organization over the next few years. By doing so they lose the leverage of scale (volume discounts) and often purchase unreliable computers that require significantly more repairs and upgrades.

All organizations have different requirements regarding performance, up-time and support, therefore it’s impossible to calculate a one-size-fits-all TCO. However, we have seen examples of companies trying to save $500 on the PC purchase price, resulting in over $5,000 in additional support, repairs and upgrades in the first year of ownership alone.

A key factor for success is the standardization of PCs as the provisioning of services and support to a PC consists of more than 80% of its TCO. Aside from lowering purchase price through volume discounts, it reduces costs for repeated procurement administration, testing, imaging, and training. Your technical support team will be able to provide less expensive and more efficient service because they are working on equipment that is familiar to them and proven to be reliable.

Our technical support team at Raxxos purchases and installs hundreds of computers every year. We attempt to standardize all of our equipment across all clients as this reduces costs on our end while allowing us to provide our clients with less expensive and speedier service, and increase their up-time.

To conclude: Organizations can drastically reduce the Total Cost of Ownership (TCO) of computers by standardizing equipment, purchasing in volume, coordinating with their tech support team, and buying approved equipment.