How Much Do You Spend On Technology?
How Much Do You Spend On Technology? Have you really thought about it?
Gartner estimates that an unmanaged managed desktop PC costs more than 5K per year. When factoring in costs, for example; firewalls, storage, servers, routers, printers and bandwidth, these estimates exceed 8K per desktop annually.
The initial purchase is just a piece of the TCO, which means a $1,000 PC could cost nearly $15,000 over its three-year lifespan. If a 20 person company upgrades its computers every 3 years, it likely spends a minimum of $140,000 managing those same computers post purchase. The same realistic theory applies to buying outdated servers, – the real investment begins once that equipment is installed in your office.
Even though the majority of TCO comes from soft cost, many companies frequently focus solely on direct costs. Since smaller budgets have already reduced IT spending, taking proactive measures to control these costs will reap rewards over a longer time horizon.
One critical cost that is often overlooked is the expense of downtime. Imagine a small law firm has a server outage that results in them being unable to perform billable work. (20 staff times $400 per hour = $8000 per hour of downtime). These types of estimates can be harder to define in many organizations, but even if you do not find a firm number, it is still a useful thought exercise in determining where your, IT spending priorities should be.