Total Cost of Ownership (TCO) is a commonly used calculation designed to help businesses assess the direct and indirect costs associated with information technology purchases. By doing a TCO analysis, you can make more informed purchase decisions.
When evaluating the TCO of hardware, software, or networking equipment, you should consider:
Use a TCO calculator
You can do your own Total Cost of Ownership analysis on any piece of equipment, from laptops to printers.
I recommend: There's a good basic calculator for determining desktop TCO on the
Intel site.
Bring in a TCO specialist
Some smaller businesses may be overwhelmed at the notion of doing a TCO analysis. If that's the case or if you have a larger company where the technology is complex, you may want to bring in a TCO expert.
I recommend: Many hardware vendors, including
Dell and
Hewlett-Packard, offer TCO services. So do consultancies
Delphi Group,
Perot Systems and
Glomark.
Standardize your hardware and software configurations
You can lower your TCO by standardizing desktop hardware, software and PC configurations. To do so, you may have to spend more money up front to get everyone on the same system. Ultimately, you can save money by eliminating "one-of-a-kind" troubleshooting and support and by creating an environment where users can easily move from one desktop to another. In addition, this approach generally makes installation, repair and maintenance less expensive.
I recommend: See guides on standardizing from
Hewlett-Packard and
Express Metrix.
Use asset management software
With IT asset management tools, you can audit and manage your company's PC and software. By doing so, IT managers can quickly identify noncompliant systems (for instance, systems that don't meet your security standards or have out-of-date operating systems) and upgrade them. Using asset management tools will often help you improve your company's IT support and response time, decrease down time and reduce TCO.
I recommend: Check out
Medialand for information on its TCO!Stream Asset Manager tool or
Vector Networks for tools that handle inventory, asset management, and desktop management.