Technology Asset Management requires understanding of
your company's TCO - Technology Total Cost of Ownership

All too often the acquisition costs of hardware and software at the desktop and server levels drive information technology decisions. However, the fact
is the $2,000 - $3,000 spent for a desktop computer is only an "entry fee" representing a small fraction of total cost of ownership. Supporting users' desktops, network servers and communication devices, etc., are all labor-intensive activities that substantially raise the cost of an initial investment.

Hidden yet Substantial Costs

The Problem is that the vast of majority of costs associated with technology asset management are attributable to all but hidden expenses. And we're talking about real money here - not play money.

Gartner Group data shows that in 2002 a networked PC cost about $13,000 per node annually for hardware, software, support, and for administrative services and end-user operations. Support costs have escalated well past anyone's expectations. Enterprises are finding that hidden costs, such as non-technical personnel attempting to resolve technology problems, can account for as much as 25 percent of the entire technology cost. End-user time spent on non-job-related PC activities can account for more than 40 percent of a PC's total cost. In many cases more than 50 percent of IT expense lies outside the IT organization.

Perhaps then the two greatest costs associated with short-sighted technology implementations are: 1. the time-value cost of inexperienced IT personnel or non-IT personnel grappling with IT problems; and 2. cost of a business interruption that results from inadequate planning for the integration of technology and business continuity planning. Gartner Group references in a nutshell the "proper deployment of technology… integrated with process and management practices" as the solution here.

Technology Asset Management - Slice your TCO

There are numerous ways to reduce your total cost of ownership. A cost reduction of several hundred dollars annually per desktop can come simply from an up-to-date inventory of your business' hardware and software desktop infrastructure. This can also benefit other areas of your business, such as help desk personnel, auditors, service providers and IT planners.

New "Remote control" technology can offer substantial cost reduction, saving hundreds of dollars annually in technical support, administration and end-user costs. The reduction in peer support cost is significant, with more than $200 savings per user annually projected by using remote control instead of local labor to troubleshoot systems and teach users remotely. Today vendors are releasing products specifically aimed at reducing technical support, administration and end-user operating costs.

Perhaps the time for your business to begin investing in distributed system asset management technology is now.

If you would like a detailed explanation and examples of what companies are spending to deliver quality IT Services, please contact us. Relativity LLC can help you determine your total cost of ownership and compare this to industry standards. We have done the evaluations and research on these questions.

We base our conclusions on published facts by industry experts and real life experiences with our customers. Knowing these answers can and will improve your overall technology asset management - and reduce your TCO.