We know business owners only care about 2 primary aspects when it comes to IT: security of your data and employee productivity. With growing cyber threats, you want to make sure you’re protected and want the reliability and tools in an IT solution that can enable your employees to be as productive as they possibly can each week. Knowing this, CompleteIT provides complete infrastructure from the data center to what sits on the employee’s desk, an entire productivity suite, robust managed security, and 24x7x365 U.S. based support; everything you need and want to start leveraging technology as a strategic advantage on a simplified, predictable pricing model.
Take the first step to calculate your CompleteIT Total Cost of Ownership.
What Is Total Cost of Ownership?
Total cost of ownership, or TCO, refers to the total expense and actual costs that goes into the procurement of technology or IT spend. This goes beyond the cost of software purchases – or, in the case of cloud computing, user costs – and incorporates all asset and operating costs related to preserving business as usual.
Total cost of ownership is one of the most important elements to consider with any kind of technology solution, particularly in evaluating hidden costs in a project. However, many companies, particularly those new to implementing large-scale solutions, fail to make the connections. Without evaluating all of the expenses and how they play into the total cost imposed on a company, the chances of making an unwise investment increase dramatically. As such, it’s very important to understand what elements are considered in a TCO analysis in order to make an educated choice.
What Is Included in a TCO Analysis?
A TCO analysis involves creating a breakdown of what expenses related to implementing an enterprise solution. These costs generally fall into four categories: ISP bills, staffing, hardware and software.
- How much are you paying for hardware?
- How often are you refreshing hardware?
- If your equipment replacement process is longer than 36 months, how much is that costing you in operational efficiency and performance?
- Will your chosen enterprise solutions require changes to your existing hardware?
- How does depreciation affect the supply chain from a tax or accounting perspective?
- What are your cyber security costs, and if you don’t have cyber security measures in place, how much does a breach cost you?
- How much do backups cost, and how frequently do you test your backup/ and disaster recovery plan? How often are backups ran?
- How much would you lose should something happen, and how long would you be down before you were fully operational?
- How much does support cost you?
- What does downtime cost you?
- Do you have a dedicated IT employee or does another employee split their time between IT and their normal role?
- How will scaling impact workloads and, consequently, the number of FTEs needed?
A TCO analysis is an essential part of building a business case when considering enterprise technology solutions. This can mean moving to the cloud, changing computer operating systems or migrating from one accounting platform to another. Making any kind of large-scale shift without an analysis of ownership costs on some level is irresponsible and can lead to serious financial implications.