07 September 2008


 

The Cost of Computing

 

 

It is easy to look at the cost of computing as being the same as the cost of computers – typically around £700 today. However, this does not take into account the myriad additional costs that are necessary to keep a computer network running. Putting all these costs together is known as TCO (Total Cost of Ownership).

These costs include the cost of software, including renewals, subscriptions, and support; technical support and maintenance contracts, installation costs, back-up costs, security costs, time lost to productive work and others.

The Gartner Group, who are specialists in assessing these types of costs, estimate that the TCO of a desktop PC is around $7,500 over the PC’s life cycle, for large corporates.

Our own analysis of costs for a small, 5 computer network, is below.

 

Item Cost per Annum Notes
PC £250 Renew 4-yearly
Support £600 Approximate
Antivirus and Spam Software £50 Annual
Microsoft Office £100 Renew 3-yearly
Backup Tapes £40 10 tapes every 6 months
Server hardware/install costs £200 £1,000 pa over 5 users
Server Support £200 £1,000 pa over 5 users
     
Total £1440 Per Annum

 

This does not take into account the cost of downtime in terms of both employee wage and potential lost revenue opportunities; as an approximate rule-of-thumb, add your employee per hour cost and treble it.

With OfficeAnyplace, the TCO will shrink;

 

Item Cost per
Annum
Notes
Thin Client £70 Renew 5-yearly
Support £200 Approximate
Antivirus and Spam Software 0 Part of OfficeAnyplace rental
Microsoft Office 0 Part of OfficeAnyplace rental
Backup Tapes 0 Part of OfficeAnyplace backup
Server hardware/install costs 0 Part of OfficeAnyplace servers
Server Support 0 Part of OfficeAnyplace servers
OfficeAnyplace £720  
     
Total £990 Per Annum