Binary Business

Read enough technology magazines and you are bound to come across the phrase "Total Cost of Ownership" or TCO. The term has become a buzzword within the technology industry and unfortunately typically used to invoke FUD (Fear, Uncertainty and Doubt). However the concept of TCO is really very simple. Aside from the cost of purchase many products that we acquire have an ongoing cost associated with their use. Total cost of ownership is a measure of these ongoing costs.

Computers are typically sold much like an appliance. You are under the impression that you take it home, plug it in and begin using it without needing to purchase any additional equipment or services. However this is far from the truth. In this regard computers are similar to cars. You purchase a car from a dealer with the implied understanding that the car is going to cost additional funds to operate. You have to pay for insurance, gas, oil changes, repairs and so on. If you were to list all of the costs associated with car ownership and add them up you would be shocked, I know I was.

When it comes to computers there are also additional costs associated with operation. Security software such as anti-virus, anti-spam, spyware protection and firewalls are all necessary once you connect to the Internet. Productivity software such as Microsoft Office is required for many common tasks. Internet service from an ISP for email and the web are also an additional cost. All of these costs are before you run into problems. You also have to account for misbehaving software and the inevitable failure of hardware components.

The key to avoiding technology headaches is to understand beforehand exactly what you are getting in to. Just as many people make their care purchases based upon factors such as fuel economy and repair costs, computers can be purchased with the goal of reducing the total cost of ownership. The first thing to consider when making a computer purchase is the intended use. Are you going to simply surf the web, send email and work on the occasional office document? A large majority of computer users only need these basic capabilities. However when computers are purchased in companies, politics often come into play resulting in the purchase of high-end computers with all the bells and whistles. This is akin to purchasing a Ferrari to drive back and forth to work and shuttle the kids around. This situation is amplified in the business world where every dollar spent should be generating revenue. Any computer manufactured in the last 2-3 years will be more than capable of handling basic computer usage.

Now to apply the theory. I am asking for some faith here. I have in fact performed the research to justify my recommendation. Take the road less traveled. The easiest way to reduce TCO as it applies to computer use is to purchase an Apple Macintosh. Modern Macs work with Windows files with no problem. Every program that you could need in your business is available for the Mac. In fact all of the computers that we depend upon at Binary Business are either Mac or Linux (We will cover Linux in another post). Macs are not vulnerable to all of the security issues of their Windows counter parts and do not require the purchase of additional software to protect them from malware. Additionally most of the software you will ever need is included with the computer. A recent study that I conducted as part of my Masters course work revealed the Windows PCs can cost as much as FOUR times than that of Macs to operate.