Understanding The Lifetime Cost Of Computer Ownership

Why do you need to know the lifetime cost of computer ownership? Everyone knows and understands that computers are a major investment.

What many forget is that this investment is an ongoing expense that should be budgeted for every year with the ongoing costs associated with the replacement of peripherals and consumables. This ongoing requirement is also due to the obsolescence built into computers.

Planning annually for your computer purchase is actually an easy task, once you do your initial research and you conduct your calculations.

Do The Calculations

What you need to do is to calculate the average total lifetime cost of computer ownership, and then divide that number by the years that each computer is expected to be used.

For example, if the cost of owning a computer was $6,000 over its 5 year life span then simply the cost per year is $1,000. However this could increase over time, if things begin to go wrong with the system and it needs repairs and replacement parts.

Calculating the total lifetime cost of computer ownership is a process that helps us to understand how to budget for computer purchases.

Before we begin this process we have to understand what all is involved in the ownership of a computer. These costs include, but are not limited to the cost of:

• purchasing the hardware
• purchasing the software
• installing the hardware and software
• training the users
• maintaining the hardware
• replacement consumables
• upgrade the hardware
• upgrade or maintain the software
• repairing the system upon breakdown

As you can see the total cost of buying and owning a computer goes far beyond the cost of the initial purchase. Plus the cost of peripherals, consumables, repairs and training will generally far surpass the initial cost of purchasing the system.

The Advantages of Computer Hardware Cost Reduction

You should also consider the advantages of computer hardware cost reduction when you set up your annual PC purchasing budget.

With technology advancing so rapidly, what you paid $1,000 for 2 years ago can now be purchased for less than $500; you can save a lot of money on hardware by not buying the latest and greatest; but by buying last years model, refurbished desktops or laptops that come with a manufacturer warranty ... you just want to be sure you purchase a system you can upgrade vs. one that is so out of date it will only last you a year or two.

How to Reduce Computer Support Cost

But how can you control the overall cost? Well, the first and best method of controlling the cost for a computer is to purchase an extended warranty for each system to allow you to utilize warranty services for ongoing maintenance.

The second method of reducing these costs is to recognize that the majority of repair costs with computers occur after the warranty has expired.

If you retire a computer soon after the warranty expires, then the lifetime cost of computer ownership will decrease dramatically.

Ensure the environment the computer is set into is optimal, or as close to optimal for it to work efficiently as possible. Low dust, cooling air, and maybe even consider air moisture control.

Doing basic maintenance of the computer yourself, such as dust control, keeping fan areas clear and clean will go a long way in helping your computer last longer as well.

Hopefully this article has shed some light on why you need to understand the lifetime cost of computer ownership, and how to get started on setting up your annual PC budget.

Consider a major manufacturer like Dell, they offer 2, 3 and 4 year warranties on all their desktops ... and at a reasonable cost! Plus they also offer refurbished models under their own warranty to save you a lot of money. Be sure and check out Dell's Factory Outlet for refurbished computers ... they are highly rated and offer excellent support onsite or off.




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