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Total Cost of Ownership

Posted on April 9, 2008 By Tom 1 Comment on Total Cost of Ownership
EdTech, Gear

It’s a tight budget year. We’re trying to build two schools and a new fine arts center. Add to that the fact that we’re facing funding cuts and inflation, and our education dollars just aren’t going as far as they once did. Despite these pressures, I keep getting requests from principals and department heads for additional computers. I would love to provide them everything they want, but the funds will only go so far.

So, at our last principals meeting I tried to impress upon our staff all of the costs involved in putting one computer on our school’s network. This was nowhere near as comprehensive as the Gartner Group’s Total Cost of Ownership calculations, but it got the point across. I thought it might be worthwhile to repeat it here.

One-time costs:

  • Hardware – computer and monitor
  • Extended Warranty
  • MS-Office Licensing – we purchase a copy for each new computer as needed
  • Deployment – setup, unboxing, imaging, asset tags
  • Curriculum software licensing

Recurring costs:

  • Antivirus
  • Novell Network and Groupwise e-mail licensing
  • Internet Filtering
  • Anti-Spam software

Other costs:

  • Data port connections – about $200 per active port (usually covered in construction and other costs, but may come into play if additional ports are needed.)
  • Replacement/Refresh Costs – computers are replaced every five years
  • Disposal at end-of-life – involves data security, recycling, hazardous waste disposal, etc.
  • Personnel and support costs

    Read More “Total Cost of Ownership” »

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