Why is TCO important?
Some companies define TCO as the total cost of using and maintaining an IT investment over three to five years. These calculations consist of a combination of hardware, software, operations and administration cost and end-user operations and downtime. TCO is often overlooked, and unbudgeted, presenting an inaccurate, IT budget.
Most companies believe their costs end at the point of installation. However, research shows that a computer system’s base price typically represents less than 20%, with support, maintenance and labor accounting for the remaining 80%. These expenses represent the greatest piece of the TCO equation and should not be taken lightly.
PC's, networks, and servers require constant administration and maintenance. Costs related to security, software updates, computer repair and support are unavoidable. However, simplifying your IT and management will increase efficiency, expand productivity and significantly reduce your TCO.