The GadellNet Top 10: Total Cost of Ownership

June 24, 2015

Technology costs are becoming a bigger part of companies’ budgets. The rising costs of tech attributes to this, but the demand for integrating technology into all parts of your business are what make these costs unavoidable. Many companies need to update employee computers, but what will this actually cost you? Over the entire life of the device, you may be surprised at just how big that number is. Understanding hidden technology costs can help you to make smart IT decisions. GadellNet has compiled 10 things you should know about Total Cost of Ownership and how to keep those costs as low as possible.

  1. Make a Smart Initial Purchase

Buying a cheaper device to begin with will likely not be the best long-term investment. A device that is not top quality is much more likely to have frequent problems and be deemed unusable much sooner than a quality device. Spend a little more in the investment and save down the road.

  1. Understand the Purchase is not where Costs End

The initial purchase of the device is estimated to be 20% of what the device will cost you over its lifetime, which on average is 3 years. You will have costs related to updating security measures, updating software, computer repair, and general support. These costs will be unavoidable throughout the life of your device.

  1. Total Cost of Ownership

TCO (total cost of ownership) is a term coined by the need to understand that ownership of a device costs more than the purchase price. Using and maintaining your device costs money, too. TCO includes direct costs of software and operations and indirect costs of end-user operation downtime.

  1. Role of strong PC Management

Preventative measures will take a little time on your part here and there, but in the long run you will save. Make sure security updates are made and firewalls are strong. Using a company who keeps your devices up for you will be one less headache and can allow you to save in the long-run while focusing on other matters now.

  1. Know where to put your Money

You will have to strike a balancing act when it comes to your IT budget. When you allocate more of your money to direct IT expenditure, you will be required to spend less on lost productivity and downtime. The same goes for preventative maintenance and downtime.

  1. Know your IT Budget

What makes up your budget is the first step in knowing your budget. You will have costs associated to hardware and software, administration, downtime, operations, and end-users. Aside from company computers, your devices also likely include printers, routers, networks, firewalls, storage, and servers. Anticipate updating devices and other IT related expenses and fit all of this into what you are able to spend.

  1. Train your Employees

Make sure your employees know what you provide them and how you want these devices to be handled. This may include helping them understand Service Desk procedures and how often scheduled maintenance can be expected.

  1. Reduce Complexity

Having fewer devices may not be feasible, but keeping these devices as streamlined as possible can help keep TCO costs at lower levels. This also applies to streamlining system patches, security updates, data backup and maintenance.

  1. Keep Security Measures a Priority

Protect your devices from viruses, spyware, hackers and physical threats. Devices may seem as if they are, to some degree, disposable, but this is not how you should approach your security. It can cost you more than a broken device- it can cost you lost data.

       10. Outsource Key IT Functions

Technical support and data storage and backup are best if trusted to an experienced IT partner. The complex nature of these IT needs require specific expertise and keeping this up-to-date will help cut TCO costs. Letting an outside professional handle these key functions will also take pressure off of your team.

The total cost of ownership of your devices can get complicated. Doing things right the first time around will save you in the long-run and that is the key to remember when it comes to TCO.


GadellNet is an award-winning IT consulting firm that provides full-service technology solutions to small businesses. Since 2003, we have been delivering efficient, profitable and happier workforces. GadellNet’s best-in-class engineering team is highly successful at implementing and maintaining value-add hardware and software technology.