Escape the TCO trap

Let’s say you want to equip your field staff with smartphones. It is not enough to add up the acquisition cost of the required number of devices. You have to consider the other costs that have an impact on TCO, including:

• the cost of rollout and device management 
• measures to protect devices such as cases and screen protectors
• fees for protection software like mobile security apps
• repair costs in the event of damage
• replacement costs in the event of theft or loss 
• device rollback 
• certified data erasure

If the TCO calculation is for more complex IT infrastructures, including international rollouts, then even greater experience is required to get it right.

Most major IT vendors provide TCO calculations, but you can be certain that they are not neutral. They may be biased in favor of the vendor.

It is not unusual for more than one supplier to be involved in a project to avoid dependence on a single vendor. When this is the case, the question is how the individual TCO calculations fit together. This is where the expertise of a non-captive external partner can be invaluable. Your partner should have the necessary experience, be familiar with your sector and with the technology you plan to use and be able to provide benchmarks that are appropriate for your project and your company.

The costs calculations can change over the course of the lifetime. All phases of the IT lifecycle must be considered, from infrastructure planning and device procurement to rollout, contract management, process costs, maintenance, and asset management, and finally rollback and secure data erasure.

A comprehensive TCO calculation provides the basis for the right finance strategy. The strategy that suits your specific project must be flexible and consider the entire lifetime of the asset. This requires transparency and tight control over IT and finances.

CHG-MERIDIAN’s solution is TESMA®, a technology and service management system that allows you to manage and coordinate contracts, services, and vendors in a single location. Complete TCO calculations, transparent projects, and clearly documented financing strategies can help you to drive forward digital innovation without losing sight of the costs – not just at the time of purchase, but across the entire lifetime.