Cost of updating a computer system

If a 10 person organization upgrades its PCs every three years, it likely spends a minimum of 0,000 managing those computers AFTER the purchase.The same logic applies to buying servers and related network hardware – the real investment begins once that equipment arrives at your door.Even though more than 50% of TCO comes from indirect expenditures, many organizations focus solely on curbing direct costs.

However, understanding hidden technology costs can actually help you reduce unnecessary expenditures and reallocate resources to more important business functions.

Network Alliance has outlined current industry standards for determining TCO below.

Estimate the # of hours spent on IT oversight and multiply by the appropriate hourly wage.

Any employee training expenses should also be calculated.

Nearly two-thirds of small businesses and organizations are expected to buy new IT equipment this year, replacing one in four office computers.

Vendors now offer powerful computers at discounted prices, but what will this equipment really cost you in the long run?According to Gartner, strong PC management is the key to overall cost reduction.The more money allocated for direct IT expenditures, such as operations and administration, the less money will be wasted on lost productivity and downtime. Because of declining IT budgets over the last few years, organizations have been forced to hold back on new purchases and temporarily band-aid ailing IT systems.Before you invest in new IT equipment this year, we encourage you to evaluate your spending history and implement best practices that will improve your bottom line. ( defines TCO as the total cost of using and maintaining an IT investment over time.TCO calculations include a combination of direct costs (hardware, software, operations and administration) and indirect costs (end-user operations and downtime).Whether you purchase a PC, notebook, server or other network hardware, you will likely experience sticker shock once you factor in the total cost of ownership (TCO).

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