TCO (TOTAL COST OF OWNERSHIP)
Equipped with mobile computers, employees and taskforce members can take the mobility advantage and be productive anywhere. However, most portable PCs are not designed for work outdoors and are easily damaged in an unfavorable environment. Damage may occur due to drops, spills, dust, extreme temperatures, or vibration, to mention a few.Thank you for reading this post, don't forget to subscribe!
Regular consumer-grade mobile computers are not designed for demanding environments. Industry research indicates that average annual failure rates are significantly higher for these consumer PCs. When downtime and repairs are figured into the lifetime cost of an ordinary laptop, the total price of that laptop increases substantially. This total price is the Total Cost of Ownership or TCO.
For enterprise buyers and demanding users, the PC procurement process must consider not only unit cost, but the total cost of ownership. The TCO indicates the total price paid to fulfill specific goals or tasks. TCO tries to offer a statement on the financial impact of deploying an information technology product over its entire life cycle and includes hardware, software, and any incidental costs.
To determine the true TCO, it is imperative to consider both direct (hard) and indirect (soft) costs.
Hard costs include:
- Hardware costs
- Software costs
- Deployments costs
Soft costs include:
- Training costs
- Operational costs
- Downtime costs
Downtime costs, including any productivity loss and lost revenue streams, factor in here. According to VDC’s (VDC Research Group, Inc., 2008) research, over 70% of the cost of owning a mobility solution can come after the initial purchase.
Also according to VDC research, organizations deem TCO the most important criterion when evaluating mobile devices.
How can RUGGED NOTEBOOKS/TABLET/LAPTOPS reduce your TCO?
Designed for Demanding Users
Having provided rugged solutions for over twenty years, RUGGED LAPTOPS/TABLETS knows the needs of frontline users. RUGGED LAPTOPS/TABLETS provides premier, fully rugged notebooks, tablet PCs, and handhelds for military, law enforcement, public safety, utilities, telecommunication, manufacturing, field service, and mobile workforce industries. Every RUGGED LAPTOPS/TABLETS computer originates from the most stringent design and manufacturing processes, to ensure the best product performance. Through the continuous monitoring of developments in the industry, and applied design optimization, RUGGED LAPTOPS/TABLET products stay one or more steps ahead, always working in the front line.
Rugged mobile computing solutions welcome the most rigid standards and survive the most challenging environments without a drop in performance. They are perfect for professionals who require dependable computer systems that continue to function despite exposure to dirt, dust, humidity, motion, vibration, or abrupt changes of temperature. As partners in achieving task goals, RUGGED LAPTOPS/TABLET products not only reduce enterprise TCO but also increase productivity.
RUGGED LAPTOPS/TABLET offers a complete line of rugged notebooks, tablet PCs, and handheld mobile computers for tasks that need to be performed under demanding weather conditions or extreme working environments. All RUGGED LAPTOPS/TABLET products are built with superior technologies and specifications that are aimed to meet and exceed virtually every industry’s requirements for durability and in-the-field high performance. RUGGED LAPTOPS/TABLET produces products using its own proven manufacturing capabilities and vertically integrated components. RUGGED LAPTOPS/TABLET has its own military-standard testing lab to put the quality and reliability of rugged products to the most extreme tests. RUGGED LAPTOPS/TABLET’s manufacturing excellence reduces machine annualized failure rate (AFR) and cuts TCO for demanding users.
Total Solution Provider
Through TCO analysis, direct and indirect costs at every stage must be considered and integrated into the decision-making process. RUGGED LAPTOPS/TABLET provides industry-leading hardware and software, as well as deployment and service programs that ensure satisfactory user experience and save downstream costs.
RUGGED LAPTOPS/TABLET is committed to being the best-rugged PC solution provider, and its design, manufacturing, and total solution service make that commitment a reality.
If a computer fails, there can be a significant impact on productivity and deliveries. Even if the notebook does not fail, an unsuitable design can have a negative impact on productivity. For example, a consumer-grade notebook cannot display well in strong sunlight, hence productivity is lost. And in a high vibration environment, important data can easily be lost unless storage devices are specially hardened against vibration.
Using The TCO Data and TCO Tools
- TCO (“Total Cost of Ownership”) coined by Gartner Group and is now the most recognized measure of what it truly costs to purchase and maintain an IT asset over its lifetime
- Most IT personnel (and CIOs and CFOs) recognize TCO
- It is the best single measure to show the lifecycle difference in cost between a commercial notebook and a rugged notebook in a field based application
- Itronix commissioned Venture Development Corporation (one of the industry’s leading independent market research firms) to study the TCO of both commercial and rugged notebooks in field based application
- This is a summary of the VDC findings
- A White Paper describing the study findings is available
- Use these tools to show your prospects and customers that over the three or five year life of a mobile computing project deploying rugged computers will save them money!!!
Need for Rugged Laptops:
- Notebook Damage Results:
- Damage rates noted as high as 18%
- 75% of companies with large notebook fleets had damage
- Average cost is $1,200 per incident
- 85% don’t track downtime, 50% don’t know costs of repair
- Lost opportunity costs are immeasurable
- Reliability is leading purchase criterion in all cases
- Cost of Damage:
- $1700 million bill for damage in 2002
- Rises to $5 billion in year 2010
- Average repair cost is $1,800
- Approaches “replacement” scenario
- Indirect costs are substantial
- Failure rates average 11 – 18%
- Cost of exchange pools, extended warranties
- 22.5% increase over last 3 years
- Expected to rise additionally 30% in next three years
- $1700 million bill for damage in 2002
Advantages using Ruggedized laptops:
- Improve ROI
- through greater employee efficiency
- Damage Expenses
- Equipment and Downtime Costs
- Opportunity Loss