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Clearly put the Cost of Ownership is the post purchase cost of maintaining a PC so it can be used to conduct business.
Cost of Ownership
The attached IDC White Paper charts the annual cost per PC in North America. Multiply that figure by the number of computers in the organization to determine your Anticipated Annual Cost.
IDC used a full time IT employee making $53 an hour ($106K annual salary) assuming the company had an IT Department. Subtracting your Anticipated Annual Cost from the cost of one full time IT employee will show the estimated savings using Consultants.
Full time IT employee = $106K 10 PCs @ $2,928 per year = $ 30K ---------- Estimated savings using Consultants $ 76K
Break-even on a full time IT employee at $106K would be 36 PCs maintained. We offer Computer Consulting services on an as needed basis eliminating the need for full-time IT staff.
Business Continuity
IDC also used a full time non- IT employee making $27 an hour ($56K annual salary) to reach the total. The total hours the non-IT and IT employees worked on the PC was 99, 99 hours the non-IT employee was not performing their job function using their PC.
99 hours @ $27 employee = $ 2,673 10 employee PCs = x 10 —--------- Estimated employee lost salary $ 26,730
Loss of revenue generated and the impact of an individual employee on the group effort will vary. Our focus is on minimizing down-time during peak business hours enabling Business Continuity.
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Experienced Consultants with Fortune 500 and small to mid-sized business background. Corporate - Small Office & Home Office |
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CNCI - Serving the Chicagoland and Greater Milwaukee areas since 1990. |
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The Cost of Ownership |
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Unmanaged |
Somewhat Managed |
Moderately Managed |
Locked and Well Managed |
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Direct costs |
2,218 |
2,147 |
2,056 |
1,874 |
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End-user costs |
3,649 |
3,122 |
2,594 |
1,539 |
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Total cost of ownership |
5,867 |
5,269 |
4,650 |
3,413 |
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Unmanaged |
Somewhat Managed |
Moderately Managed |
Locked and Well Managed |
|
Direct costs |
2,899 |
2,790 |
2,660 |
2,590 |
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End-user costs |
7,023 |
6,004 |
4,983 |
4,440 |
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Total cost of ownership |
9,923 |
7,794 |
7,643 |
7,030 |
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A Gartner Inc. study on actively managing resources.
Gartner Inc. conducted that benchmarked the cost of ownership for PCs on a Network and Notebooks under various levels of management.
Gartner applied its methodology to a hypothetical organization with central IT and 2,500 desktops. It assumed that the original cost of a PC was $1,200 and that PCs were kept for four years. These and other parameters were applied to four scenarios with different levels of management.
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