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The REAL COST of Technology

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by  Information Technology Services 

Have you ever purchased a car with the expectation that you would never have to spend more money later for insurance, gas, registration and maintenance?  Probably not. Well the costs associated with owning and operating a computer are not much different. A computer, to be useful over time, requires maintenance, electricity, and software registration, to name a few.

Major differences exist between the purchase of a computer and a car that costs more dollars. The cost of setting up the location for a computer can be expensive if electricity, phone lines and a proper desk are not in place. There are also costs to lock down our computers and ergonomics to consider. In addition, the length of time a computer remains useful is about half the life span of a car, about 3-4 years, and so replacement costs are higher.

A recent statewide study of all community colleges by Gartner Group concluded that the “Total Cost of Ownership” (TCO) of a single computing device is $3,506 over a three year period. This amount is what should truly be considered as the cost of owning and operating each computer on campus. The college’s budgeting process does not provide for this type of planning over multiple years. Most people, therefore, think that the only cost they need to worry about and plan for is the original purchase price of $800—$1,200. That is only about 1/3 of the total cost of the computer!

Other costs that are part of the TCO and are not included in the purchase price exist; some are visible to the computer user and some are hidden. Visible costs include hardware and software repairs and add-on devices, and training costs to help users make the most of their investment. Hidden costs include end user support like the Help Desk, development support to keep software on the device current and within warranty, communications support such as the network operation costs, and system management support to keep things working well together.

Information and Technology Services would like to make certain that all computer users are knowledgeable about TCO. We stand ready to help you make the most of your investment. When considering that computer or software upgrade or purchase, contact us at x5915 to assist you in making sure your purchase is cost effective, appropriate for your needs and will serve you well for the lifetime of the computer. ˙